Relocation Policy

RELOCATION POLICY

 
 
1.             Policy Statement
 
It is Company XYZ policy to provide financial assistance to selected posts at the discretion of the Director of Human Resources to newly appointed staff who, as a direct result of accepting the appointment, necessarily incurs expenses in moving home nearer to Company XYZ work address.
 
 
2.             Objectives
 
2.1       The objectives of this Policy are to enable staff to;
 
(i)               begin a new job with the minimum cost and disruption to home life and,
(ii)              assist towards reimbursement of expenses incurred by the move.
 
 
3.            Eligibility
 
3.1  Staff will be eligible for reimbursement of relocation expenses either in full or in part, up to the overall maximum for each section of expenditure; provided that:
 
(i)            Relocation assistance will not normally be offered unless specifically stated in the recruitment process.
(ii)         The section and/or sections of expenditure under which reimbursement will be made is agreed with the staff member in principle either at interview or at the time the offer of employment is made and the entitlement to financial assistance is confirmed in writing by the Director of Human Resources before any expenditure is incurred.
(iii)  The application of this policy and the decision to reimburse under one or more of the sections is entirely at the discretion of the  Director of Human Resources.
(iv)       All the qualifying conditions are met.
 
Where staff are in doubt about eligibility under the policy, reference should be made to the Director of Human Resources in the first instance, before incurring expenditure for which reimbursement is to be claimed.
 
4.            Qualifying Conditions
 
4.1   To receive financial assistance prospective staff must be living more than 80 kilometres from their new place of work or one-hour travel to work time by public transport. Therefore, they will be expected to move to a new home that is less than 80 kilometres from their new place of work or less than one hour travel to work time by public transport.
 
4.2   For new staff who were previously resident outside South Africa, assistance with expenses as a result of relocation will be considered from the point of arrival within South Africa.
 
4.3   Original and valid receipted VAT invoices must support all claims submitted.
 
4.4      The relocation must take place within 12 months of the date of commencement and claims submitted within 3 months following the date of the actual move. Consideration will be given by  Company XYZ for late claims as long as an extension is applied for and agreed in writing before the end of the initial 12 months.
 
4.5 Claimants should be aware that if their contract of employment ends for any reason, there is a requirement for a full or partial repayment. Full details are given at paragraph 6.
 
4.6    Where more than one member of the household is appointed to Company XYZ, only one claim for reimbursement will be accepted.
 
 
5.     Expenditure Sections, Limits and Categories
 
5.1    Section 1 :   
 
Removal Expenses : Up to a maximum of R______.__ in total.
 
5.2    Section 2 :   
 
Legal and Other Professional Fees : As agreed up to a maximum
of R____.__ in total to cover some or all of the possible expenses
listed in Section 5.2 – 5.3 (see below)
 
5.3    Section 3 :   
 
Search for new accommodation / temporary accommodation:
Up to a maximum of R_____.__ in total
 
 
5.1    Section 1     Removal Expenses
 
(i)  The cost of the removal of household effects (including insurance in transit) from a location in South Africa are reimbursed.  The term ‘household effects’ does not extend to include such items as caravans, trailers, motor vehicles, boats, livestock and other items which cannot easily be transported in a removal van.
 
(ii)   Where a member of staff chooses to move him/herself and does not engage a contractor, the expenses of van hire from a van hire company, petrol and insurance costs can be claimed. Labour charges, however incurred, are not reimbursed.
 
(iii) Reimbursement will be the lower of three competitive quotations, which must be submitted to the Director of Human Resources prior to the move. The member of staff may engage a contractor of his/her choice if he/she pays the difference in cost between the actual charge and the lowest quotation.
 
(iv)  The removal must take place within 12 months from the date of commencing the appointment.
 
 
5.2 Section 2   
 
Legal and Other Professional Fees Directly Connected with the Sale and Purchase of Accommodation
 
(i)   The types of expenditure which will be acceptable are; stamp duty, attorney fees, estate agent fees, surveying fees, mortgage arrangements
 
(ii)  Where a member of staff is selling and purchasing a property, actual expenditure is reimbursed subject to the maximum grant level.
 
(iii) Where a member of staff is either selling or purchasing a property (i.e. one transaction) actual expenditure is reimbursed subject to the maximum grant level.
 
(iv) Where a member of staff is moving from one rented property to another, assistance is available towards legal and other professional fees subject to the maximum grant level.
 
 
5.3 Section 3   
 
Search for new accommodation / temporary
accommodation
 
(i)  Travelling expenditure will be reimbursed where it is necessary to visit the new area to find accommodation, up to a maximum of 3 visits. Each visit can include one overnight stay. Expenses will only apply to the member of staff, their partner and dependant(s) if applicable.
 
(ii)   Payment of travel expenditure will be at the economy class fare or travel mileage rate in line with Company XYZ Financial Regulations.
 
(iii)  A member of staff with family / dependants who requires temporary accommodation (within a reasonable distance of the new place of employment) and as a consequence is separated from their family (which includes partner and or dependants) may be eligible for payment of rent. This is usually only paid when the family / dependants remain at the previous address, although it is possible for discretion to be applied when the family also move into temporary accommodation.
 
6.       Conditions Relating to the Payment of Grants / Allowances
 
 
 
6.1  The grants / allowances referred to within the Relocation Policy are payable within a period of 12 months from the date of commencement in the new post. Extensions beyond this period are granted in exceptional circumstances by the Director of Human Resources. 
 
6.2  The claimant must complete the appropriate claim form, undertaking to repay to Company XYZ either the whole or a proportion of the total grants / allowances paid under this Policy if his/her employment ends for any reason within the periods specified in paragraph 6.3 below. The claimant will also authorise Company XYZ to deduct from any monies that may be due from the Company XYZ (e.g. salary, travel expenses) monies undertaken to be repaid. If the amount of any monies due is insufficient to clear the outstanding debt, the Director of Finance will raise an account for the balance.
 
6.3   If the claimant’s employment with Company XYZ ends for any reason, there is a requirement under this Policy to repay the total grant paid if the last day of employment is within 12 months of the date of relocation, reducing by 25% per annum if the last day of employment is between 12 and 48 months of the date of relocation. Repayment will not be required if the member of staff is dismissed through reason of compulsory redundancy or ill health. 
 
6.4  The claimant will undertake in writing to confirm that no other member of his/her household is claiming or will claim relocation expenses in connection with the move, either from Company XYZ or any other source.
 
6.5  Supplies of claim forms are available from the Director of Human Resources.
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