COMMERCIALISM INTEGRITY STEWARDSHIP. Policy on Relocation

Transcription

1 Policy on Relocation

2 Relocation Contents 1. Introduction 1 2. Existing employee relocation 2 3. Relocation assistance for home owners 2 4. Sale of current property 2 5. Purchase of a new property 3 6. House hunting costs 3 7. Temporary accommodation 4 8. Removals 4 9. Disturbance costs Repayments on leaving The Crown Estate Taxation Relocation assistance for home renters General 5 1. Introduction 1.1 The Crown Estate s relocation policy is designed to assist current employees and new employees who are required to relocate in order to work for The Crown Estate. The terms of any relocation assistance, including the total value of the assistance package in each case will be as agreed by the relevant Director, at the relevant time but the purpose of this policy is to provide information on The Crown Estate s normal policy. 1.2 This policy is non contractual and does not form part of employees terms and conditions of employment. 21

3 2. Existing employee relocation 2.1 Where it is impossible or unreasonable for the employee to commute daily from their existing home to the agreed new work location, The Crown Estate may provide support for relocation. It is the intention to ensure that certain financial costs arising directly from The Crown Estate s decision to move the employee will be met by The Crown Estate and that the employee will receive reasonable assistance. 2.2 UK relocations are subject to the agreement of the relevant Director and co-ordinated by the relevant HR Business Partner, with assistance from the Finance Department. 3. Relocation assistance for home owners 3.1 If the employee relocating owns their home, The Crown Estate may provide financial assistance and advice to assist them. The total value of the relocation package will be determined with reference to their job and may include assistance with the following:- Sale of their current property, to include reasonable: Purchase of a new property, to include reasonable: Estate agent fees Survey fees Survey fees Bank/building society arrangement fees House hunting costs Cost of temporary accommodation Removal costs Arranging bridging loans These are covered in more detail below. 4. Sale of Current Property Estate agents fees 4.1 Reasonable estate agent fees for the sale of the employee s existing house will normally be paid by The Crown Estate but will be approved within the overall financial package agreed by The Crown Estate for the employee s relocation. The employee should ensure that the agent involved does not incur excessive advertising costs. If in doubt in relation to the extent of such provision, please contact the relevant HR Business Partner. 2

4 Survey fees 4.2 The Crown Estate will meet the cost, if any, of initial sale valuation. In addition, the cost of a structural survey in relation to the employee s proposed new property will be paid if deemed necessary by The Crown Estate, but costs will be approved within the overall financial package agreed by The Crown Estate for the employee s relocation. 4.3 Please refer to the notes below under purchase of a new property, which also apply here. 5. Purchase of a new property 5.1 A general radius area for relocation will be agreed between the employee s Director (funding the relocation) and HR Business Partner. Mortgage 5.2 Employees should make early contact with their building society, bank or mortgage broker and obtain a formal letter of mortgage offer or a letter of intent approving the loan and amount in principle. 5.3 The Crown Estate will normally meet the cost of standard level and allied expenses, including stamp duty, incurred in the purchase of an employee s new home and in the sale of their existing house, provided that the new house is a similar property (in terms of value) to the sale house. The Crown Estate will not normally pay for conveyancing charges in excess of half a percent of the purchase/selling price. The cost of meeting these costs will be met within the overall financial package agreed by The Crown Estate for the employee s relocation. Survey Fee 5.4 A full structural survey is advisable before proceeding with a purchase. If through no fault of the employee the purchase does not proceed, or if the surveyor advises against the purchase, a second survey will also be paid for on one other property by The Crown Estate. The cost of meeting these costs will be met within the overall financial package agreed by The Crown Estate for the employee s relocation. 5.5 In Scotland this provision may be extended at The Crown Estate s discretion due to the bid system. 6. House hunting costs 6.1 Reasonable house hunting costs will be met by The Crown Estate. If the relocating employee wishes to make a familiarisation visit to their new work location prior to starting their new job, The Crown Estate will cover the cost of one two night stay in a local hotel for the employee and their partner. Travel costs will be reimbursed at the rates set out in The Crown Estate business expenses policy. Any other reasonable travel costs will be met by The Crown Estate, subject to such costs being approved in advance by the HR Business Partner. 3

5 7. Temporary accommodation 7.1 Where it is impractical for the employee to commute to work on a short term basis from their existing home, the temporary accommodation options available are: Three weeks accommodation including the cost of breakfast and evening meal, type of accommodation will be determined by the HR Business Partner. Should the employee still be unable to relocate following this three week period, a further nine weeks accommodation only will be paid for by The Crown Estate. The cost of the employee travelling home will be paid for each weekend. This cost is however limited to the cost of a 2nd class return rail fare from the employee s original home location. 7.2 Where there are special circumstances the above periods may be extended at The Crown Estate s discretion. However if the employee s existing house is sold The Crown Estate will not pay for any further temporary accommodation, as savings in outgoing will arise from the absence of mortgage payments. 8. Removals 8.1 The cost of the physical removal of the employee s domestic goods and furniture and the necessary insurance of such goods whilst in transit will be met by The Crown Estate. 8.2 Three estimates should be obtained for such removals and forwarded to the HR Business Partner for authorisation. 8.3 The Crown Estate will also meet the cost of any necessary storage of such goods for up to a period of four months. However, this is subject to prior approval of the HR Business Partner. 8.4 The cost of meeting these costs will be met within the overall financial package agreed by The Crown Estate for the employee s relocation. 9. Bridging Loans 9.1 Wherever possible employees and their solicitors should endeavour to coincide completion dates on the sale and purchase or at least to minimise the gap between them. If such a gap is unavoidable, arrangements for a bridging loan may be made by The Crown Estate. 9.2 Bridging loans must be arranged through a commercial business regulated by the Financial Services Authority (FSA). 9.3 The cost of arranging a bridging loan will be met within the overall financial package agreed by The Crown Estate for the employee s relocation 10. Repayments on leaving The Crown Estate 10.1 Should the employee leave The Crown Estate within 24 months of receiving relocation assistance under this policy, whether at their own instigation or at The Crown Estate s, The Crown Estate reserves the right to recover from the employee, all relocation assistance incurred from a standard house move The amounts recouped will be reduced by one 24th for each completed month worked up to the date of leaving from the date of the relocation. 4

6 10.3 If the employee takes advantage of the relocation package but does not reach the stage of occupying their permanent new home, all associated relocation costs will need to be repaid to The Crown Estate. Any repayments will include all additional taxes and NI contributions paid on behalf of the employee by The Crown Estate. 11. Taxation 11.1 All financial assistance provided by The Crown Estate will be provided under HM Revenue & Customs guidelines (with a current maximum amount of 8,000 (plus taxable items)) and employees may as a result incur some tax liability in the process. 12. Relocation assistance for home renters 12.1 If the employee rents their home, or lives with their parents/other immediate family, The Crown Estate may provide financial assistance and expert advice to assist them with: Temporary accommodation Solicitors fees Letting agents fees Removals Deposit on rented property which may be lost as a result of the move Relocation assistance must be negotiated with the relevant Director as part for the acceptance of a new position. All relevant claims must be submitted within 12 months of starting their new job. 13. General 13.1 This policy supersedes any arrangements previously set out in the Staff Handbook and Working for The Crown Estate - A guide for employees. If you have any queries regarding the application of this policy, please speak to your line manager or a member of the HR team. Date last reviewed: April 2013 Agreed with: GMB and PCS This policy will be reviewed every 2 years, or earlier if legislation or practice changes. 5