Committee Coversheet. Martin Jones, Executive Director Workforce and OD

Transcription

1 Committee Coversheet Finance & Performance Committee Item: FP16/101 To improve health and provide excellent care Title: Author: Responsible Director: Public or In Committee Strategic Goals Relocation Expenses Policy Lesley Hall, Assistant Director Workforce and OD Martin Jones, Executive Director Workforce and OD Public (Indicate how the subject matter of this paper supports the achievement of BCUHB s strategic goals tick all that apply) 1. Improve health and wellbeing for all and reduce health inequalities 2. Work in partnership to design and deliver more care closer to home 3. Improve the safety and outcomes of care to match the NHS best 4. Respect individuals and maintain dignity in care 5. Listen to and learn from the experiences of individuals 6. Use resources wisely, transforming services through innovation and research 7. Support, train and develop our staff to excel. Approval / Scrutiny Route Purpose: Significant issues and risks Equality Impact Assessment BCUHB policies group, sub group of LNC Policy and procedure for the reimbursement of relocation expenses for new and existing staff. It clarifies what financial assistance is available for all prospective eligible employees and in which circumstances and to existing employees who are required to relocate as a result of organisational change. This policy consolidates predecessor organisation legacy relocation policies, providing a BCUHB wide policy and procedure for the reimbursement of relocation expenses for new and existing staff. It is recognised that for hard to recruit groups, provision of relocation expenses is one of the benefits that may attract staff to BCUHB. It is recognised that package should be kept under review to ensure that BCU is not disadvantaged. Policy is applicable to all staff. 1

2 Recommendation/ Action required by the Committee For ratification. Disclosure: is the operational name of University Local Health Board Committee Coversheet v9.0 February

3 Version: 0.2 Bwrdd Iechyd Prifysgol RELOCATION EXPENSES POLICY WP29 Date to be reviewed: No of pages: 11 Author(s): Pat Foster, Kevin Robinson, Karen Walker, Kim Outwin Author(s) title: Head of Medical Workforce, Medical Workforce Manager(s) Responsible dept / Workforce & Organisational Development director: Approved by: Executive Director of Workforce & Organisational Development Date approved: Date approved Date activated (live): Date becomes live Date EQIA completed: July 2015 Documents to be read WP1a Safe Recruitment Practices Guidelines alongside this policy: WP7 Procedure For Equality Impact Assessment WP8 BCUHB Equality, Diversity & Human Rights Policy WP14 Leave Procedures WP14b All Wales Special Leave Policy WP46 Additional Annual Leave Purchase Scheme NHS terms and conditions of service handbook (Agenda for Change) Amended mileage rates from 1 July 2014 Pay and Conditions Circular (AforC) 3/2014 Terms and Conditions of Service of Hospital and Public Health Medical and Dental Staff and Community Doctors Annex A: Section 8 Transport fees and allowances: Basic rates of pay per annum, effective from 1 April 2015 Section 26 of the General Council Conditions of Service An Organisational Change Policy for NHS Wales Purpose of Issue/Description of current changes: To consolidate predecessor organisation legacy relocation policies, providing a BCUHB wide policy and procedure for the reimbursement of relocation expenses for new and existing staff. (Previous predecessor policies: WEST - Removal Expenses Policy (HRP14); EAST Relocation Expenses NEWPO5 Nov 2006; CENTRAL Relocation Policy BLACK 119) Summary Policy and procedure for the reimbursement of relocation expenses for new and existing staff. It clarifies what financial assistance is available for all prospective eligible employees and in which circumstances and to existing employees who are required to relocate as a result of organisational change First operational: Date the policy was first operational Previously reviewed: date date date date date Changes made yes/no: Yes/no Yes/no Yes/no Yes/no Yes/no WP29 - Draft Version: 0.2 Page 1 of 5

4 CONTENTS Introduction and Policy Statement 1 Purpose of the Document 2 Scope 3 Relocation and Associated Allowances 4 Assistance with Additional Leave 5 Taxation, PAYE and National Insurance 6 Staff Leaving Employment (Recovery Of Payments) 7 Reimbursement of Expenses 8 Submission and Processing of Claims 9 Authorisation of Claims 10 Payment of Claims 11 Training and Awareness 12 Equality 13 Data Protection Act WP29 - Draft Version: 0.2 Page 2 of 5

5 1. Introduction and Policy Statement It is the policy of the Health Board to provide assistance to newly appointed staff who are required to move in order to take up their post, in accordance with the policy and procedures outlined below. The Health Board regards assistance with relocation expenses as a benefit, rather than an entitlement, therefore no individual should incur expenses or commit to expenditure until they receive formal written authorisation from the Hospital/Area Director or nominated senior manager in line with the Health Board s scheme of delegation. 2. Purpose of the Document 2.1The aim of this policy is to support the Health Board to recruit high quality staff. 2.2 This policy specifies the basis for a clear understanding of eligibility to Relocation Expenses and allowances that will apply in particular circumstances. 3. Scope 3.1 The policy applies to all employees, regardless of their age, gender or gender identity, ethnicity or nationality, sexual orientation, religion or belief, whether they are disabled, married/in a civil partnership, or pregnant/on maternity leave, subject to any service requirements that may apply. This policy applies to all staff groups employed by the Health Board, other than medical & dental staff in training. Details of entitlements for the latter are outlined in the policy Relocation Costs and Associated Provisions For Doctor and Dentists in the Training Grades issued by the Cardiff University & School of Postgraduate Medical & Dental Education (Applicable from August 2008). Whether or not relocation expenses may be payable will be determined by considering whether or not an individual meets the following criteria: a) The post to which the successful applicant has been appointed: i) Was advertised/recruited nationally and ii) Is for a period of time not less than 2 years and... The employee is moving to a new home within a reasonable travelling distance of their work base. WP29 - Draft Version: 0.2 Page 3 of 5

6 or. Bwrdd Iechyd Prifysgol b) As a result of organisation and/or service change, where there is a requirement for the employee to move to a new location. For these purposes of a) and b) above the Health Board regards a reasonable distance as being up to a maximum of 25 miles and no greater than 30 minutes travelling time. This will also apply where on call duties are required. However, in determining eligibility for relocation expenses the Health Board will also give due consideration to the distance the employee currently lives from their work base. 3.2 The policy is applicable to any member of Health Board staff who is required to move their work base as a result of organisational change, as agreed by the Health Board and where the distance from their current home residence to the new work base is only viable if the employee relocates to a new area. However, this does not apply to medical staff covered in 3.1 above i.e. doctors under training This policy may not apply to staff who may be contemplating relocating to a new area in anticipation of organisational change. In such instances the employee should discuss their plans with their manager and should not enter into any binding arrangements without first obtaining written confirmation that their proposed move is considered necessary, reasonable and represents value for money. A4C T&Cs: Travel to and from work is the responsibility of the individual. Staff required to change their base as a result of organisational change will be reimbursed any excess travel expenses for a period of up to four years (Para 13 OCP). Exceptions: a) It is at the discretion of the Health Board to extend the benefits of this scheme to any new employees who do not meet these criteria e.g. recruitment to posts where there are recognised recruitment difficulties. In such instances approval must be obtained from both the Executive Director of WOD and the Executive Director of Finance in line with BCUHB Standing Orders Reservation and Delegation of Powers: b) It is also at the discretion of the Health Board, in exceptional circumstances, to increase entitlements and/or extend duration of entitlements. Such changes require the prior authorisation of the Executive Director of WOD and the Executive Director of Finance. c) Where a couple both gain employment with the Health Board at the same time, only one relocation expenses package will be payable in accordance with the conditions outlined below. WP29 - Draft Version: 0.2 Page 4 of 5

7 d) If a couple are moving to the area and both are eligible for relocation expenses, there is an expectation that the same expenses should not be claimed from both the Health Board and the second organisation. 4. Relocation and Associated Allowances 4.1 Prior to committing themselves to any expenditure, new employees should ensure that they have obtained appropriate authorisation as to which of the following categories they are regarded as falling under. Authorisation should be obtained by submitting form [RExAF (Relocation Expenses Application Form)]. To maximise flexibility new staff have a choice in the mix of expenditure claimed. The only proviso is that total expenditure must not exceed the relevant maximum outlined below: a) Maximum Payments Relocation and related expenses will be granted in the form of a maximum payment based on the following criteria: i) Staff (other than Doctor and Dentists in Approved Training Grade Rotational Posts) Employee moving: Maximum Payment Categories Category A: Owner occupier to owner occupier B: Owner occupier to rented accommodation * C: From rented accommodation to owner occupier D: Rented accommodation to rented accommodation E: Relocation of personal effects only Maximum payment 8,000 4,000 4,000 1, * if this is a temporary measure and within 2 years there is a further move to owner occupier the maximum payment in Category A will apply (within overall limits). ii) Consultant Grades and Non consultant Career Grade Doctors As per the limits in Section 4.1 a ( i) above WP29 - Draft Version: 0.2 Page 5 of 5

8 b) Costs Eligible for Reimbursement Under the Scheme i) Relocation and associated allowances may be payable in relation to some or all of the following subject to the relevant maximum expenses limit as outlined above: Estate agents commission (one agent only) Stamp duty Legal fees (sale and purchase) Land registration Mortgage arrangement fee Storage fees for a maximum period of 12 months. Employees are required to provide evidence that they have obtained three quotes. Employees may use the firm of their choice, but reimbursement will be limited to the cheapest of the three quotes. Travel Expenses (these expenses may be subject to taxation): To and from "home" at the end of the working week, for a maximum period of 6 months. Incurred if it is necessary for the employee to superintend the removal Reimbursement will be at public transport rate or lease car depending on whether or not the employee is a designated lease car holder. Continuing commitments (these expenses may be subject to taxation): in the old area may be reimbursed up to a maximum of the agreed relocation maximum payment/6 month in relation to mortgage payments whichever is reached sooner. household and contents insurance, council tax and water rates Temporary accommodation - reimbursement of reasonable costs for temporary accommodation (if necessary) for a maximum period of 6 months. Valuation survey (NB: Reimbursement will not be made for full structural surveys unless such a survey is necessary for mortgage purposes and prior authorisation has been obtained) Relocation expenses, including insurance of goods in transit. Employees are required to provide evidence that they have obtained three quotations. Employees may use the firm of their choice, but reimbursement will be limited to the cheapest of the three quotations. In all the above cases: Evidence of expenditure will be required prior to authorisation of payment (receipts should be provided). Quotes/invoices will not be accepted as proof of payment for any expenses incurred. Authorisation that a proposed move is considered reasonable and relocation expenses may be payable should be sought from the relevant Chief of Staff prior to proceeding. WP29 - Draft Version: 0.2 Page 6 of 5

9 In all cases, the employer will need to be assured that the accommodation in the new area (i.e. purchased or rented) is comparable with the old accommodation. Additional information: In relation to expenses associated with house purchase, in exceptional circumstances, if a purchase fails due to no fault of the employee, consideration will be given to reimbursement for a further purchase Expenses will NOT be paid for bridging loans. Miscellaneous Expenses The Health Board may pay miscellaneous expenses up to a maximum of 1,000 to cover items such as: Reinstallation of domestic appliances Purchase of domestic goods for the new residence may be included where these are purchased to replace items used by the employee in their old residence because the original goods are not suitable for the new residence. Receipts must be provided to support the amount claimed. Payment of miscellaneous expenses will form part of the overall entitlement to relocation expenses. It is not in addition to the maximum level payable. c) Relocation Expenses which are not allowable to be claimed under the scheme The following are examples of relocation expenses which are not allowable. Please note that this list is not intended to be exhaustive: House purchase Bridging loan Advance of salary Mail re-direction Council Tax bills Purchase of new school uniforms for employee s children Penalty for giving insufficient notice of a child s withdrawal from school Partner s/spouse s loss of earnings or help towards an employee s partner/spouse finding a job, career and education counselling or job search agency Home search facility House cleaning on sale or purchase Fixtures and fittings Furniture Interest payments on existing residence WP29 - Draft Version: 0.2 Page 7 of 5

10 Bwrdd Iechyd Prifysgol Compensation for losses such as cost of joining a new sports/social club, or a part-used season ticket Internet/Broadband Connections at new residence or penalty costs for cancelling existing Internet/Broadband contract registered at old residence. Other examples of HMRC guidance can be found at: 5. Assistance with Additional Leave To assist with relocation additional paid leave will be granted of up to a maximum of 5 days to facilitate: Search for accommodation in the permitted area A return visit to superintend removal from the old "home" 6. Taxation, PAYE and National Insurance Employees should note that relocation expenses are part of their taxable earnings. If you relocate for job purposes, the first 8,000 of expenses you receive are exempt from tax provided certain rules and conditions are met. In order to qualify for inclusion in the 8,000 limit, the qualifying relocation expenditure must be incurred or benefits provided before the end of the tax year of assessment following the one in which the employee begins to perform the new duties at the place of work. Reimbursement of relocation expenses must be claimed within one year of the effective date of the change of base. This period may be extended at the discretion of the Director of Workforce and Organisation Development., however, the maximum period will be in accordance with HMRC rules for the exemption of tax and Class 1A NIC liability i.e. before the end of the tax year following that in which the employee changes their base. NIM Class 1 NICs : Expenses and allowances : Relocation allowances Staff Leaving Employment (Recovery Of Payments From) Existing Staff Existing staff leaving the Health Board through voluntarily resignation within 2 years of the effective date of the change of base, may retain a sum to the total allocated relocation package based on each completed month of service WP29 - Draft Version: 0.2 Page 8 of 5

11 (i.e.1/24th of reimbursement made for each month of service) The remainder of any reimbursement made may be required to be repaid. This amount may be deducted from an employee s final salary. Staff who do not relocate their home to the new area within two years from the date of their change of work base, will be expected to repay all relocation expenses paid. Newly Appointed Newly appointed staff who do not relocate their home to the new area within two years from the date of their change of work base will be expected to repay all relocation expenses paid. An employee, appointed on a permanent contract will be required to sign an undertaking to repay a balance of the relocation expenses if they leave the Health Board voluntarily within 2 years of commencement of employment. In such a situation recovery will be sought as follows: Period of service Amount of relocation expenses to be repaid Less than 6 months 100% 6 12 months 75% months 50%. 8. Reimbursement Expenses Claims for reimbursement of expenses should be submitted at the earliest opportunity, and in any event within 6 weeks of the expenditure being incurred. Claims for all expenses including travel expenses relating to relocation should be submitted on the claim form [RExCF (Relocation Expenses Claim Form). Travelling expenses for visits to the old area must be claimed monthly. Relocation is expected to occur within six months of the date the individual takes up their post within the Health Board. Reimbursement of relocation expenses must be claimed within one year of the effective date of the change of base. This period may be extended at the discretion of the Director of Workforce and Organisation Development., however, the maximum period will be in accordance with HMRC rules for the exemption of tax and Class 1A NIC liability i.e. before the end of the tax year following that in which the employee changes their base. Only in exceptional circumstances, for example where the exchange of contracts has been delayed through no fault of the employee, or where the individual can evidence that all reasonable steps are being taken to action the relevant move, will relocation expenses be paid after this period. WP29 - Draft Version: 0.2 Page 9 of 5

12 9. Submission and Processing of Claims Medical & Dental Staff: Relocation claims for Medical and Dental staff should be submitted to the Medical Workforce Team via: BCU.Medicalworkforcequeries The Medical Workforce Department will process the claims submitted by Medical and Dental Staff Only in accordance with the relocation policy and procedures. When authorisation for payment has been received from the Clinical Area s relevant senior manager, the claim will be referred to the finance/taxation department for final check and referral for payment. The finance/taxation team will monitor claims and will notify the employee (with a copy to the Medical Workforce Department) when the value of expenses claimed reaches 75% of the total amount payable and again when 100% has been reached. All groups of staff (other than Medical & Dental): Relocation claims for all groups of staff (other than Medical & Dental) should be submitted directly to the finance BCU.TaxTeam department. 10. Authorisation of Claims Authorisation of relocation claim must be made in line with the Health Board s scheme of delegation i.e. claims must be authorised by the Clinical Area/Department s relevant senior manager as budget holder, or nominated senior manager. 11. Payment of Claims When authorisation for payment has been received and all documentation processed the claim will be referred by the BCU.TaxTeam@wales.nhs.uk for payment. 12. Training and Awareness This policy will be made available on the Health Board s Intranet site on the Workforce Policies and Key Documents section. There is no formal training available for this policy. Informal queries should be directed to the following: all groups of staff (other than Medical & Dental) can contact: mailto:bcuworkforceadvice@wales.nhs.uk or mailto:bcu.taxteam@wales.nhs.uk Medical & Dental Staff can contact: mailto:bcu.medicalworkforcequeries@wales.nhs.uk WP29 - Draft Version: 0.2 Page 10 of 5

13 13. Equality (BCUHB) recognises the importance of equality, diversity and human rights in respect of its responsibilities as an employer and as a provider of health care services to communities in North Wales. WP8 BCUHB Equality and Diversity Policy serves as an important foundation stone to the development of the BCUHB s services to patients and to the employment and development of staff. Policies and practices within the BCUHB must incorporate the spirit of the Policy. This will ensure that service delivery, recruitment and employment practices are designed and carried out fairly and in accordance with equality and human rights legislation. WP7 Procedure For Equality Impact Assessment aims to provide a framework to ensure that equality and human rights principles are identified and considered in everything we do by embedding equality considerations into organisational decision-making and policy development processes. It also aims to ensure the organisation develops the necessary capability to undertake robust impact assessments 14. Data Protection Act 1998 The Data Protection Act 1998 protects personal data (for a definition and more information see the Data Protection Policy), which includes information about staff, patients and carers. The NHS relies on maintaining the confidentiality and integrity of its data to maintain the Health Board of the community. Unlawful of unfair processing of personal data may result in the Health Board being in breach of its Data Protection obligations. References WP1a Safe Recruitment Practices Guidelines WP14 Leave Procedures WP14b All Wales Special Leave Policy WP46 Additional Annual Leave Purchase Scheme NHS terms and conditions of service handbook (Agenda for Change) Amended mileage rates from 1 July 2014 Pay and Conditions Circular (AforC) 3/2014 Terms and Conditions of Service of Hospital and Public Health Medical and Dental Staff and Community Doctors Annex A: Section 8 Transport fees and allowances: Basic rates of pay per annum, effective from 1 April 2015 Section 26 of the General Council Conditions of Service (Medical & Dental Staff) An Organisational Change Policy for NHS Wales WP7 Procedure For Equality Impact Assessment WP8 BCUHB Equality and Diversity Policy WP29 - Draft Version: 0.2 Page 11 of 5

14 Members of the Working Group: Name Kevin Robinson (BCUHB - Workforce & Organisational Development) Pat Foster (BCUHB - Workforce & Organisational Development) Kim Outwin (BCUHB - Workforce & Organisational Development) Karen Walker (BCUHB - Workforce & Organisational Development) Denise Roberts (BCUHB - Finance) Ceri Hardy (BCUHB - Finance) Title Medical Workforce Manager Head of Medical Workforce Medical Workforce Manager Medical Workforce Manager Financial Accountant: Tax and Capital Senior Financial Services Officer - Tax & VAT Engagement has taken place with: Name Title Date Consulted WP29 - Draft Version: 0.2 Page 12 of 5