RELOCATION POLICY
Purpose:
This policy provides for relocation assistance to an existing employee on transfer and a new hire on joining the company, with boarding and lodging support for a defined period of time.
Eligibility:
All full time employees in the level of professionals & above are eligible, subject to entitlements.
[Eligibility depends on company policy. Only for illustration, it has been mentioned that it is for career levels of professionals and above]
Policy:
- An overview of the relocation benefits are given in the table below.
[The career levels and monetary & other entitlements shown in the table and the provisions which follow are only for illustrative purposes. They depend on company policy which it has been observed, differs across domains as well as companies]
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VP
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AVP/Sr Associates
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Associates
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Professionals
|
|
Scouting trip
|
Yes
|
Yes
|
Yes
|
No
|
|
Actual travel
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Expense allowance … to cover meals, laundry, etc. (if accommodation provided)
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INR 600 per day (single person)
INR 1300 per day (for family*)
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INR 450 per day (single person)
INR 1050 per day (for family*)
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|
Expense allowance … to cover lodging, meals, laundry, etc. (if accommodation not provided)
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INR 1300 per day (single person)
INR 2800 per day (for family*)
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INR 1050 per day (single person)
INR 2200 per day (for family*)
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Personal goods shipment
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Actuals, subject to a max of INR 100,000. Plus transit cost of two personal cars.
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Actuals, subject to a max of INR 70,000. Plus transit cost of a personal cars.
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Actuals, subject to a max of INR 50,000. Plus transit cost of a personal cars.
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Actuals, subject to a max of INR 35,000.
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*Family is defined as self, spouse and two dependent children
- The above expense allowance is all inclusive and no other reimbursements, on any other account, is provided.
- If the company pays the hotel for expenses besides cost of accommodation, such as meals, laundry etc., the employee is not eligible for expense allowance.
- Other policy provisions are:
a. Scouting Trip
Scouting trip is made by self (employee), spouse and 2 children (Nursery to 10 +2) in search of a suitable residence and school for children on transfer to another company location or prior to joining the company. Entitlement for scouting trip starts only from the career level of Associates.
Policy:
1. The company reimburses economy class airfare (to and fro) from current place of employment/ residence, to the place of posting.
2. Company also reimburses three days of stay for the family at a company approved hotel inclusive of boarding and lodging (in a standard room).
b. Actual Travel
Actual travel is travel undertaken by self and family a day prior to joining the company/new location. All full time employees are entitled to actual travel.
Policy:
1. The company reimburses economy class airfare (to and fro) from current place of employment/residence, to the place of posting.
2. Claims are also admissible for taxi fare from residence to the airport/ railway station at the current place of employment/residence and from airport to the hotel at the place of posting.
c. Hotel Stay
Hotel stay is a period of hotel accommodation provided by the company starting from a day prior to joining. All full time employees are entitled to hotel stay.
Policy:
1. The company reimburses two weeks of hotel stay inclusive of boarding and lodging for family from a day prior to joining the company for employees who are not eligible for scouting trip and also for employees who are eligible for the scouting trip and have availed the same.
For employees who are eligible for scouting trip and have not availed the same, the company reimburses three weeks of hotel stay.
2. Food for the family is covered during the hotel stay. It includes Breakfast, Lunch, Dinner and Tea (twice a day). Expenses incurred on alcohol and expenses such as personal phone calls, etc are however, not reimbursed.
3. No HRA is payable to the employee during the hotel stay.
4. For relocation pertaining to new hires, the hotel stay is subject to tax from the first day of hotel stay. The company however, bears the tax liability for the first 14 days of stay. For stay exceeding the first 14 days, the tax liability is to be borne by the employee.
5. For relocation pertaining to existing employees, the hotel stay is not subject to tax for the first 14 days. If the hotel stay, however, exceeds beyond the first 14 days, then the costs incurred over the entire period, starting from the 1st day of stay, is taxable and is to be borne by the employee.
6. No bills are necessary to support the claim of expense allowance.
d. Personal goods shipment:
The policy allows reimbursement of all transit expenses on packing, transportation and unpacking of household goods. All full time employees are entitled to the reimbursement of these expenses, subject to entitlement.
Policy:
1. Expenses incurred on shipment by the shortest route are permitted and are subject to certain maximum limits as per individual entitlement. Expenses in some companies may also be limited to a truckload/container. Also, transfer of personal car may not apply at all levels.
2. Most companies ask employees to use the services of empanelled agencies for relocation purposes. Perquisite tax rate maybe applicable on transit of goods but most companies absorb the same on behalf of the employee.
Procedure:
1. All expenses incurred on relocation (expenses on travel, hotel accommodation, packing, transportation of goods etc) have to be supported with relevant bills, which normally are verified by the Recruiter in case of new hire and approved by the HR Business Partners/Head.
2. Airfare reimbursement is also to be supported, by ticket/e-ticket along with the boarding pass. This reimbursement is not taxed in the hands of employees.
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