Policy and Protocol for Relocation Expenses

Version / Version 5
Name of responsible (ratifying) committee / HR Policy Group
Date ratified / 9th January 2014
Document Manager (job title) / Head Employee Resourcing
Date issued / 16th June 2014
Review date / 15th June 2014
Electronic location / Corporate Policies
Related Procedural Documents / Recruitment and Selection Policy, Recruitment and Selection of Medical Staff Policy
Key Words (to aid with searching) / Relocation; Expenses; residence; property; allowance; Conditions of employment; Employee benefits; Personnel procedures; Removals

Version Tracking

Version / Date Ratified / Brief Summary of Changes / Author

CONTENTS

QUICK REFERENCE GUIDE

1. INTRODUCTION ………………………………………………………………………………..…………..4

2. PURPOSE…………………………………………………………………………………………………….4

3. SCOPE ………………………………………………………………………………………….……………4

4. DEFINITIONS ………………………………………………………………………………….……………5

5. DUTIES AND RESPONSIBILITES ……………………………………………………….….……………5

6. PROCESS ………………………………………………………………………………….….…………….6

7. TRAINING REQUIREMENTS ……………………………………………………………………………..8

8.REFERENCES AND ASSOCIATED DOCUMENTATION ………………………………….………….8

9. EQUALITY IMPACT STATEMENT…………………………………………………..…….……………..8

10. MONITORING COMPLIANCE WITH PROCEDURAL DOCUMENTS………………………...……..9

Appendices:

Appendix A: Removal Expenses/Excess Mileage Personal Eligibility Checklist

Appendix B: Removal/Expenses Claim Form (for Junior Medical and Dental Trainees only)

Appendix C: Sample Offer Letter

Appendix D: Undertaking to Repay Relocation Allowance in Certain Circumstances

Appendix E: List of Approved/Excluded Relocation Expenses

QUICK REFERENCE GUIDE

For quick reference the guide below is a summary of actions required. This does not negate the need for the document author and others involved in the process to be aware of and follow the detail of this policy.

  1. The Trust can offer financial assistance for newly appointedstaffwho as a result of their appointment need to move their main domestic residence a reasonable distance, including those staff appointed from overseas.
  1. First Time Buyers can be provided with help with removal expenses but this does not apply to the process of buying a property in such circumstances.
  1. A reimbursement of up to £5,000 of any costs incurred related to the relocation, against receipts submitted (£8,000 for Senior and Junior Medical and Dental Staff). The ceiling for senior medical staff will be reviewed at the second anniversary of this version of the policy as it was reduced due to financial constraints.
  1. The following conditions will apply to these claims;
  1. Personal Eligibility Checklist must be completed and submitted for approval
  1. The relocation allowance expires after two years of taking up the post. Any amounts not claimed within two years cannot be claimed
  1. Original quotes for services will be required
  1. Original receipts must be submitted
  1. Claims must be submitted within three months of the expenditure and will be reimbursed via monthly salary
  1. If the appointee leaves within two years of receiving a relocation allowance they will be required to repay a proportion of the amount they have received

1. INTRODUCTION

1.1This policy must be followed when deciding whether a new employee is entitled to relocation expenses. It applies to all Portsmouth Hospitals NHS Trust (“the Trust”) staff.

1.2The Trust is committed to equality of opportunity in employment and the recruitment of a diverse workforce regardless of race, gender, age, religion, nationality, belief, sexual orientation, criminal conviction history or disability. The Trust aims to positively support the recruitment of a diverse workforce in line with our Single Equality Scheme and ensure this process does not place any barriers to an individual’s recruitment.

1.3This policy has been written in the spirit of the NHS Constitution and the Trusts Values of Respect and Dignity, Quality of Care, Working Together and Efficiency.

2.PURPOSE

2.1This policy outlines the arrangements for claiming relocation expenses and to ensure clarity over eligibility and what can be claimed. There is no automatic right to relocation expenses.

2.2The Trust can offer financial assistance for newly appointed staff who as a result of their appointment need to move their domestic residence a reasonable distance, including those staff appointed from overseas.

2.3Where a consultant has to live within 10 miles or 30 minutes of the Trust they will be eligible for removal expenses when they have to move in order to be within this locus.

2.3This policy is not designed to improve the new appointee’s position on the housing market but to facilitate a move to take up a new post.

2.4This policy replaces one with a higher allowance for senior medical staff due to financial constraints. At two years from agreement this position will be reviewed.

3.SCOPE

3.1This policy applies to all new substantive appointments taking up employment with the Trust who would reasonably be required to move their domestic residences as their old residence would not be considered within a reasonable daily travelling distance of their new normal place of work. The move between the old and new property must be considered reasonable.

3.2Junior Medical and Dental Trainees in training grades have guidelines issued by the Wessex Deanery which are reflected in this policy but managers should refer to the Business Manager, Learning & Development for advice. This guidance can be found at

3.3Senior Medical staff must live within 30 minutes or 10 miles travelling distance from their normal place of work unless an alternative agreement has been reached with the Medical Director.

3.4New appointees who sell a property in their old home area and purchase a new property within an appropriate proximity of their place of work would normally be eligible.

3.5First Time Buyers can be provided with help with removal expenses but this does not apply to the process of buying a property in such circumstances. For those applicants moving from overseas this would only be from port of entry into the UK.

3.6It is not anticipated that new employees on fixed term or locum contracts less than a year will be offered a relocation allowance. However, where the offering of a relocation allowance will demonstrably aid recruitment to the fixed term post, or if the post is a Junior Medical or Dental trainee,managers will retain the ability to offer such an allowance.

3.7 Relocation allowance may not be claimed if recoverable, in full or part, from another source e.g. through partners employer.

3.8 In the event of an epidemic infection outbreak, flu pandemic or major incident, the Trust recognises that it may not be possible to adhere to all aspects of this document. In such circumstances, staff should take advice from their manager and all possible action must be taken to maintain ongoing patient and staff safety.

4.DEFINITIONS

4.1Senior Medical and Dental Staff – Consultants, Associate Specialist, Staff Grades and Specialty Doctors;

4.2Junior Medical and Dental trainee – junior doctors/dentist who have been appointed to a Deanery approved training position.

Reasonable distance – the distance between the new appointees original and new residence must be considered a reasonable distance to move. Discretion rests with the appointing manager or the Medical Director for Senior Medical and Dental Staff. This will take note of 2.3 above

5.DUTIES AND RESPONSIBILITIES

5.1Applicants:

  • Applicants must disclose any other source of relocation assistance, including that paid to any other member of their household. The receipt of any other relocation assistance will affect the amount granted by the Trust. The position being that there is only one set of costs associated with the sale or purchase of a property. Failure to disclose the receipt of other relocation assistance would be viewed seriously by the Trust and the disciplinary procedure may be invoked.
  • Must raise the request for relocation expenses immediately after offer of employment
  • Should not assume that they will eligible for relocation expenses. These must be agreed in writing with the appointing manager within 4 months of being offered the post.

5.2Employees

  • Must produce original receipts/documentation as proof of the actual expenses connected with their move before they are reimbursed. They will also need to include proof of sale and purchase of a property. These must be presented within 3 months of the expenditure.
  • Inform their manager and the Trust should their personal circumstances change as this can affect their eligibility for relocation expenses i.e. be unable to sell their original property.
  • Ensure any application is in line with this policy.

5.3Manager/Head of Employee Resourcing/Learning and Development Business Manager

  • Ensure eligible staff are aware of the entitlement and this policy on being offered the post
  • The consideration of relocation expenses and associated provisions is at the discretion of the manager who is free to agree whatever arrangement for individuals is appropriate within the parameters set below. In the case of Consultant Staff the allowance is managed by the Head of Employee Resourcing. In the case of Junior Medical and Dental Trainees the allowance is managed by the Learning and Development Department Business Manager.
  • The request for relocation expenses should not affect the decision to offer a position and should not be discussed during the interview.
  • Inform Employee Resourcing of the allowance agreed.
  • Review the agreement for continued appropriateness and eligibility.
  • Should the employee cease to be eligible for the allowance or leave the organisation within two years take action to stop the allowance and/or for pursue repayment.

6.PROCESS

6.1Financial Limits

6.1.1A reimbursement of up to £5,000 of any costs incurred related to the relocation against receipts submitted (reimbursement of up to £8,000 for Junior Medical and Dental trainees and Senior Medical and Dental Staff).

6.1.2Executive Directors have discretion to vary this subject to the maximum limit of £8,000, but this will need to be explicitly agreed by the Remuneration Committee. The Medical Director has the discretion to vary this amount with agreement of the Remuneration Committee in the case of Senior Medical and Dental Staff. An example of when such discretion could be exercised is the urgent need to appoint staff in the face of a severe recruitment difficulty and when the offering of enhanced relocation expenses would enable a quality appointment to be made.

6.1.2Payments of excess travel costs in excess of £8,000are taxable at source. Other payments related to relocation are exempt from tax providing they are receipted and within the cost limit set.

6.2Deciding the level of allowance to offer

6.2.1Before deciding whether to offer an allowance, managers should:

  • Ensure the offer fulfils the criteria outlined in this policy (or consult with Human Resources if in any doubt)
  • Take into account the particular circumstances of the candidate
  • Take into account other conditions of service offered to the candidate
  • Decide what is a reasonable geographical purchase area to approve for relocation

6.2.3The question of entitlement to expenses is important and must be communicated to the member of staff within 3 months of taking up the post and to ensure eligibility the issue should be raised at interview stage by the employer and confirmed when an employment offer is made. Appendix E outlines what can / cannot be claimed.

6.3Junior Medical and Dental Staff

6.3.1Junior Medical and Dental Staff must contact the Learning and Development Business Manager as soon as they are aware they have been offered employment with the Trust. Appendix APersonal Eligibility Checklist must be completed and returned to the Learning and Development Business Manager.

6.3.2The Learning and Development Business Manager will assess the eligibility to claim against the Wessex Deanery guidelines and issue the Junior Medical and Dental Trainee with a claim form (Appendix B).

6.3.3This should be returned to the Learning and Development Business Manager with the appropriate documentation. The Learning and Development Business Manager will issue the Junior Medical and Dental Trainee with a letter confirming the allowance they will receive whilst at this Trust for their records.

6.3.4The employee must inform their manager and the Trust of any change to their personal circumstance.

6.4All other Staff

6.4.1Allowances must be discussed and agreed immediately after offer. AppendixA Personal Eligibility Checklist can be used to ensure the member of staff is eligible for Relocation Expenses. Requests for relocation assistance after the terms of contract have been agreed should not normally be considered.

6.4.2The manager should write to the individual confirming the agreement reached (sample letter attached Appendix C) and inform Employee Resourcing of this agreement. The “Undertaking to repay allowances under certain circumstances” (Appendix D) should be returned to the manager and forwarded to Employee Resourcing for recording on the individuals personnel file.

6.4.3The Trust also reserves the right to reclaim payments made to employees who fail to relocate within two years of their appointment date. In exceptional circumstances discretion over this period may be given with the approval of an Executive Director.

6.4.4This undertaking may be waived in exceptional circumstances, including where the employee is required to move by the Trust, or leaves the employment of the Trust through compulsory redundancy.

6.4.5Staff on a fixed term contract of one year or less will not normally attract the payment of an allowance, with the exception of Junior Medical and Dental Staff. However, where such an allowance is offered, if the member of staff leaves prematurely, they will be required to repay the allowance in full.

6.4.6The member of staff should submit their claim to their manager by completing AppendixA, in the case of Consultants this should be submitted to the Head of Employee Resourcing.

6.4.7Staff will be reimbursed on production of proof of sale and purchase of a property. 30% of the total allowance will be reimbursed against the sale of the old property and 70% against the purchase of the new property. Staff receiving income on their property will not be eligible as this is not designed to improve their position on the property ladder.

6.4.8With the exception of Junior Medical and Dental Trainees, employees voluntarily leaving the employment of the Trust within a period of two years from the date of commencement will be required to repay their expenses on the following scale:

  • up to 12 months employment with the Trust - 100% reimbursement.
  • 12 to 24 months employment with the Trust - 50% reimbursement.

The Trust reserves the right to reclaim payments made to employees who fail to relocate within two years of their appointment date.

6.4.9The new appointee must be actively seeking to sell their current property at a realistic price.

6.4.10If the new appointee’s property remains unsold and they continue to incur mortgage expenses, reasonable accommodation costs may be reimbursed. This would normally be the lower of the monthly mortgage on the old property or rental/mortgage on the new property.

6.4.11Senior Medical and Dental Staff must live within 30 minutes or 10 miles travelling distance from their normal place of work unless an agreement has been reached with the Medical Director.

6.4.12 Any outstanding relocation allowance not claimed within two years cannot be claimed.

6.5Appeals Procedure

6.5.1If an employee feels that they have been treated unfairly in relation to relocation expenses provisions they may pursue this matter as a grievance in accordance with the Trust’s Grievance Policy

6.5.2In the case of Junior Medical and Dental Trainees the grievance should be sent to the Director of Postgraduate Medical and Dental Education in the first instance

7.TRAINING REQUIREMENTS

7.1Managers will be briefed on the content of this policy as required

8.REFERENCES AND ASSOCIATED DOCUMENTATION

RelocationsGuidelines – NHS Education South West and NESC, September 2008

Trust Fair Treatment and Grievance Policy

9.EQUALITY IMPACT STATEMENT

Portsmouth Hospitals NHS Trust is committed to ensuring that, as far as is reasonably practicable, the way we provide services to the public and the way we treat our staff reflects their individual needs and does not discriminate against individuals or groups on any grounds.

This policy has been assessed accordingly

All policies must include this standard equality impact statement. However, when sending for ratification and publication, this must be accompanied by the full equality screening assessment tool. The assessment tool can be found on the Trust Intranet -> Policies -> Policy Documentation

Our valuesare the core of what Portsmouth Hospitals NHS Trust is and what we cherish. They are beliefs that manifest in the behaviours our employees display in the workplace.

Our Values were developed after listening to our staff. They bring the Trust closer to its vision to be the best hospital, providing the best care by the best people and ensure that our patients are at the centre of all we do.

We are committed to promoting a culture founded on these values which form the ‘heart’ of our Trust:

Respect and dignity

Quality of care

Working together

No waste

This policy should be read and implemented with the Trust Values in mind at all times.

Relocation Expenses Policy Version 5. Issued: 16/06/2014/14 (Review date: 15/06/2016) Page 1 of 18

10.MONITORING COMPLIANCE WITH PROCEDURAL DOCUMENTS

This document will be monitored to ensure it is effective and to assurance compliance.

Minimum requirement to be monitored / Lead / Tool / Frequency of Report of Compliance / Reporting arrangements / Lead(s) for acting on Recommendations
Policy audit report to:

Policy audit report to:

Policy audit report to:

The effectiveness in practice of all procedural documents should be routinely monitored (audited) to ensure the document objectives are being achieved. The process for how the monitoring will be performed should be included in the procedural document, using the template above.
The details of the monitoring to be considered include:
  • The aspects of the procedural document to be monitored: identify standards or key performance indicators (KPIs);
  • The lead for ensuring the audit is undertaken
  • The tool to be used for monitoring e.g. spot checks, observation audit, data collection;
  • Frequency of the monitoring e.g. quarterly, annually;
  • The reporting arrangements i.e. the committee or group who will be responsible for receiving the results and taking action as required. In most circumstances this will be the committee which ratified the document. The template for the policy audit report can be found on the Trust Intranet Trust Intranet -> Policies -> Policy Documentation
  • The lead(s) for acting on any recommendations necessary.

Relocation Expenses Policy Version 5. Issued: 16/06/2014/14 (Review date: 15/06/2016) Page 1 of 18