Relocation policy

If you require a new recruit to move near to their place of work and you are willing to contribute towards the cost of the move, then our relocation policy is just what you are looking for.

Relocation, relocation, relocation

If you are willing to offer relocation assistance to new recruits, then you will need a Relocation Policy. Likewise, if you may require an employee to change their place of work during the course of employment (subject, of course, to either the employee’s express agreement or an appropriate contractual mobility clause), details of the relocation package and policy should also clearly be set out. Tax relief is available for certain expenses involved with relocation where it is necessary for the employee to move their sole or main residence. The maximum amount on which tax relief is available on each move is £8,000 and it covers items such as the expenses of sale and purchase, transporting personal belongings, bridging loans, replacement of domestic goods, travel and subsistence. Tax relief may not be claimed for any losses incurred in the sale of the employee’s old home for which you compensate the employee. Our policy sets out the various expenses that you may wish to consider reimbursing, although of course exactly how far you want to go in offering relocation assistance is entirely up to you. Bear in mind that there may be little incentive for a new or existing employee to move unless a sufficiently attractive relocation package is on offer.

A right to claw back

Our policy also provides that the relocation expenses are repayable if the employee leaves employment (or if employment is terminated for whatever reason) within two years of taking up the post requiring relocation. It is unlawful to deduct money from an employee’s pay unless the employee has given their written consent in advance, or there is a relevant provision in their contract of employment to authorise a specific deduction. A repayment clause for relocation expenses will also only be enforceable if the sums repayable aren’t out of all proportion to your loss, for example the amounts are repayable on a sliding scale. Our policy contains an appropriate clause and requests the employee’s signature. The employee’s signature should be obtained before the relocation expenses are paid.