Relocation/Removal Expenses Policy

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1 Relocation/Removal Expenses Policy DOCUMENT CONTROL: Version: 5 Ratified by: Corporate Policy Panel Date ratified: 2 August 2018 Name of originator/author: Human Resources Department Name of responsible Corporate Policy Panel committee/individual: Date issued: 9 August 2018 Review date: August 2021 Target Audience New employees who meet the eligibility criteria/are required to relocate

2 CONTENTS Section Page No 1. INTRODUCTION 3 2. PURPOSE 3 3. SCOPE 3 4. RESPONSIBILITIES, ACCOUNTABILITIES AND DUTIES Board Of Directors Managers Human Resources Department Employee Head of Financial Planning and Reporting 4 5. PROCEDURE/IMPLEMENTATION Summary of Principles Eligibility Criteria Elements of Relocation Assistance Repayment of Financial Assistance Cancellation of Proposed Relocation Procedure for Application for Relocation Expenses Right of Appeal TRAINING IMPLICATIONS MONITORING ARRANGEMENTS EQUALITY IMPACT ASSESSMENT SCREENING Privacy, Dignity and Respect Mental Capacity Act LINKS TO ANY ASSOCIATED DOCUMENTS REFERENCES APPENDICES 12 Appendix 1 - Relocation Expenses Application Form 13 Page 2 of 14

3 1. INTRODUCTION The Trust recognises that relocation expenses can be an integral part of the recruitment process and can be used as part of an overall employment package to ensure the appropriate people with the right skills are attracted and recruited into the Trust. 2. PURPOSE The purpose of this Policy is to assist new employees by: Helping with the costs of moving home Providing assistance to aid the temporary disruption to normal home life Providing a relocation package that is fair and equitable Providing a relocation package that uses public funds appropriately 3. SCOPE This policy applies to those employees who are directly employed by the Trust and for whom the Trust has legal responsibility. 4. RESPONSIBILITIES, ACCOUNTABILITIES AND DUTIES 4.1 Board of Directors Director of Workforce and Organisational Development Overall accountability for relocation / removal expenses within the Trust lies with the Director of Workforce and Organisational Development. Director of Finance and Performance The responsibility for the payment and processing of relocation / removal expenses lies with the Director of Finance and Performance. 4.2 Managers Managers will be responsible for establishing eligibility of employees for assistance with relocation / removal expenses in conjunction with the Director of Workforce and Organisational Development and the Director of Finance and Performance. Managers will ensure employees, both existing and new employees are aware of this guidance and of the professional regulatory bodies statements of ethical responsibilities by reviewing this policy in line with best practice guidance that is issued by the Department of Health/HM Revenue and Customs (HMRC). Page 3 of 14

4 4.3 Human Resources Department To provide appropriate support and guidance to managers and employees regarding the implementation of this policy. 4.4 Employee All employees eligible for assistance as defined in section 5.2 have a responsibility to: Make him or herself aware of the Policy and its requirements Notify the Trust where more than one employer is involved with the potential claim Notify the Trust if their partner is eligible to receive any financial assistance for their relocation Submit only legitimate and valid receipted claims for reimbursement 4.5 Head of Financial Planning and Reporting Making payments to eligible employees in accordance with the requirements of this policy Interpreting any regulations issued by HM Revenue and Customs in relation to personal taxation and ensuring that they are correctly applied to any payments made to an employee Maintaining all records associated with the administration of the Policy and making these available to HM Revenue and Customs as and when required 5. PROCEDURE/IMPLEMENTATION 5.1 Summary of Principles The relocation / removal expenses policy is intended to assist new employees who are required to relocate as a result of taking up employment with the Trust. Eligibility for assistance is determined by the nature of the role appointed to, the distance of their main residence from the base point of the new role and the time taken to make the move. However, relocation / removal expenses are only available to employees either on Agenda for Change Terms and Conditions of Service, Band 7 and above or posts deemed hard to recruit to by the Director of Workforce and Organisational Development. For employees e.g. Doctors who are employed on terms and conditions of service other than Agenda for Change the salary would need to be equivalent to the Agenda for Change Band 7 salary scale for relocation / removal expenses to be considered There is no automatic right for relocation / removal expenses. Page 4 of 14

5 The extent of the financial reimbursement is equivalent to a maximum value of 8,000 in line with the HM Revenue and Customs limit. The employee is responsible for any statutory income tax and national insurance liability incurred as a result of receiving the relocation expenses. As the relocation is job related the first 8,000 is exempt from tax provided that certain conditions are met, including that the new property is the employee s main residence. HMRC have also set a time limit on relocation. Relocation must be completed before the end of the tax year (5 April) after the one in which the employee takes up his/her new position. At the time of being offered relocation assistance the employee will be advised of the date by which his/her relocation must be completed. The Line Manager has responsibility for confirming if a new employee is eligible to apply for relocation / removal expenses in conjunction with the Director of Workforce and Organisational Development and the Director of Finance and Performance. Employees provided with financial assistance for relocation / removal expenses will be required to sign the application form to the effect that they will remain in post for at least 2 years. Should the employee terminate their contract of employment before the expiry of this period, the employee may be asked to repay the Trust any monies paid as part of the relocation package as detailed in Section 5.4. The Trust may request an independent valuation of current property and the new property must be broadly comparable with the previous property. The employee s old home must be a significant distance from their new home and/or base of work. Any property purchased or rented should normally be within 10 miles of the radius of the new base point. Any deviation to this must be approved as part of the application process by the Director of Workforce and Organisational Development and/or Director of Finance and Performance. It is imperative that authorisation to relocate to a location which is in excess of 10 miles from the base point be obtained before committing to the purchase or rental of a property as failure to do so may result in committal to expenses which may not be reimbursed. Employees must advise their Director if their partner is eligible to receive any financial assistance (from the NHS or elsewhere) for their relocation. In such cases the Trust reserves the right to revise the allowances listed in this procedure or to not meet the expenses incurred as part of the relocation. Three written quotes for removal costs must be produced, the lowest of which will be payable. Page 5 of 14

6 Documentation for submitting applications for requesting relocation / removal expenses can be found in section 11.1 of the policy and must be completed. No reimbursement will be made unless the appropriate documentary evidence has been provided to the Trust. 5.2 Eligibility Criteria New employees may be eligible for financial assistance with their relocation if they are: Appointed to a position within the Trust And Required to change their sole or main residence as a result of starting their employment with the Trust And The employee s old home is a significant distance from their new home and/or base of work. And Be undertaking a move to live within a 10 mile radius of the base point. Exceptions to this must be approved by the Director of Workforce and Organisational Development and/or Director of Finance and Performance. And Be offered a position on Agenda for Change Terms and Conditions of Service Band 7 or above, or an equivalent salary on different terms and conditions of service or Be offered a hard to recruit to position as identified by the Director of Workforce and Organisational Development. For further advice, please contact the HR Department. 5.3 Elements of Relocation Assistance It is anticipated that the 8,000 would be equally split between the purchase of a new property and associated costs payment of rent on a temporary property and temporary travelling/subsistence allowances. Page 6 of 14

7 Any deviation from this must be approved in advance by the Director of Workforce and Organisational Development and/or the Director of Finance and Performance. The following elements may be reimbursed up to a maximum of 8000 as part of the relocation package on production of receipted expenses: Assistance with removal of furniture and effects An estimate of the cost of removal) must be approved as part of the relocation expenses application process. Three competitive written quotes must be obtained and the lower reimbursed The written quotes should be subject to the conditions under which removals are ordinarily undertaken and should not cover special services. Any costs incurred outside of normal conditions will be at your own cost The cost to be reimbursed will be for the removal of furniture and effects from the employee s old home to their new home including pedal cycles and garden furniture and may include a packing/unpacking service. However, this will not include removal of any special items for which you have to make separate arrangements. Livestock and animals other than domestic pets are not covered as part of this arrangement and therefore the employee is liable for the cost Storage Charges for the storage of furniture and effects will be reimbursed for up to 12 months where the necessity for storage arises from the move. If any furniture remains in storage after the expiry of the 12 month period, further reimbursement may be made dependant upon the circumstances and must be approved by the Director of Workforce and Organisational Development and/or Director of Finance and Performance. Contents Insurance Extra costs of insuring furniture in transit or in store will also be met as appropriate Assistance with House Purchase If purchasing a property and it is the first permanent unfurnished accommodation in the area, the reimbursement of legal and other expenses will be made as follows: - Solicitors fees - Legal Expenses - Expenses in connection with mortgage and loan including guarantee and survey fee (excluding interest) Page 7 of 14

8 - Cost of private survey - Electrical wiring test - Drains test Stamp Duty and Land Registration fees can be included in the 8,000 removal expenses limit, where the purchase price of the property is no higher than the maximum comparable property value set by the Independent Chartered Surveyor From 22 November 2017, there are new rules in relation to Stamp Duty and Land Registration fees for first time buyers who purchase a property. Further information is available here. Where the purchase price exceeds the aforementioned limit, reimbursement in respect of Stamp Duty and Land Registration fees will be limited to the amount that would be payable on the maximum comparable property value set by the independent Chartered Surveyor. Assistance with a House Sale The reimbursement of legal and other expenses will be made relating to the sale of a property in which a new employee was living immediately before the appointment and will be made as follows: - Solicitors fees - Legal expenses incurred on redemption of a mortgage - Estate Agents and Auctioneers fees and services (where a house agent or auctioneer is not appointed, reasonable expenses on advertising costs may be reimbursed) - Other reasonable expenses will be considered as necessary Temporary Rented Accommodation The new employee may be reimbursed reasonable expenses associated with a tenancy agreement including estate agent fees should they need to rent accommodation in the new area Travelling/Subsistence Expenses Travel and subsistence costs for visiting the new area in connection with securing accommodation. Reimbursement of travel costs for the purposes of visiting the new area will only be paid for one visit and will be limited to the distance between their current home and their new base point s Town Centre, i.e. Doncaster, Scunthorpe, Rotherham etc.. A claim for reimbursement of the cost of one journey can be made in connection with the new employee and their family visiting the new home. Page 8 of 14

9 Travel and Subsistence costs will be paid at Reserve Rate. New employees who are unable to find suitable accommodation but would otherwise qualify for relocation / removal expenses may be reimbursed their excess daily travel costs from their home to their new base point however the following conditions must be met: - The reimbursement shall not exceed the extra cost incurred on the basis of bus fares and second class rail fares (including season tickets) - The rate of reimbursement shall not exceed the Trust s long term rate of night subsistence allowance - Reimbursement shall continue only for as long as the Trust is satisfied that you are making every effort to find suitable accommodation and is limited to the end of the tax year (5 April) after the one in which the employee takes up his/her new position. - If an offer of temporary accommodation is made and it is declined, reimbursement of travel expenses will not be made Losses arising from Educational arrangements Where it is essential for educational reasons for the new employee to leave any of their children at a school in their previous area, there is discretion to make payments in respect of certain charges incurred. However, there are strict conditions and this must be discussed and approved by the Director of Workforce and Organisational Development and/or Director of Finance and Performance. Miscellaneous Expenses Grant/Continuing Commitments Allowance These allowances are payable for additional expenses after taking up new appointment and occupying new permanent accommodation and should be discussed further with the Trust. Assistance with House Purchase/Advance of Salary New employees may be eligible for an advance recoverable from salary. Further advice should be obtained from the Trust. 5.4 Repayment of Financial Assistance It is expected that anyone in receipt of relocation / removal expenses will remain in employment with the Trust for a minimum period of 2 years. Should an employee terminate their employment before the expiry of the 2 year period, they will be expected to reimburse the Trust the costs paid as part of the relocation package in accordance with the following scale: During the first 12 months 100% 12 months to less than 16 months 85% Page 9 of 14

10 16 months to less than 20 months 65% 20 months to less than 24 months 50% 24 months plus - 0% 5.5 Cancellation of Proposed Relocation If an employee decides not to proceed with a planned relocation, any monies reimbursed to them in accordance with this policy, will be repayable to the Trust. If a planned relocation is cancelled due to factors outside of their control, no repayment will normally be necessary. However, this is at the discretion of the Director of Workforce and Organisational Development and/or Director of Finance and Performance. 5.6 Procedure for Application for Relocation Expenses In order to apply for relocation / removal expenses, the new employee should check whether they meet the eligibility criteria as detailed in section 5.2. Once this has been confirmed, the Line Manager should be advised of their intention to make a claim for relocation / removal expenses. The new employee should then arrange to complete the application and submit to their Line Manager who will then forward to the Director of Workforce and Organisational Development and/or Director of Finance and Performance for approval. 5.7 Right of Appeal Should an employee be dissatisfied with the decision made in relation to relocation / removal expenses they will have the right which will be heard in accordance with the Trusts Grievance and Dispute Policy. 6. TRAINING IMPLICATIONS (Training Needs Analysis) Staff groups requiring training Managers Human Resources How often should this be undertaken On revision of the policy or new appointment /promotion On appointment or revision of the policy Length of training NA NA Delivery method Trust communica tion channels On the job training/me ntoring Training delivered by whom HR Advisors/ Line Managers HR Managers/ Head Workforce of Where are the records of attendance held? NA NA Page 10 of 14

11 Staff groups requiring training Staff Side How often should this be undertaken On revision of the policy and at Policy Forum Length of training NA Delivery method Awareness/ Briefing sessions on the policy Training delivered by whom Workforce and OD Directorate Where are the records of attendance held? NA 7. MONITORING ARRANGEMENTS Area for Monitoring How Who by Reported to Frequency Number of Relocation Applications HR/ Payroll Data HR Trust Governance structure Annually Number of grievances/ complaints regarding the application of the policy Review of HR data HR 8. EQUALITY IMPACT ASSESSMENT SCREENING Trust Governance structure Annually An Equality Impact Assessment has been completed on this policy and is published on the Trust website. 8.1 Privacy, Dignity and Respect The NHS Constitution states that all patients should feel that their privacy and dignity are respected while they are in hospital. High Quality Care for All (2008), Lord Darzi s review of the NHS, identifies the need to organise care around the individual, not just clinically but in terms of dignity and respect. Indicate how this will be met No issues have been identified in relation to this policy. As a consequence the Trust is required to articulate its intent to deliver care with privacy and dignity that treats all service users with respect. Therefore, all procedural documents will be considered, if relevant, to reflect the requirement to treat everyone with privacy, dignity and respect, (when appropriate this should also include how same sex accommodation is provided). Page 11 of 14

12 8.2 Mental Capacity Act Central to any aspect of care delivered to adults and young people aged 16 years or over will be the consideration of the individuals capacity to participate in the decision making process. Consequently, no intervention should be carried out without either the individuals informed consent, or the powers included in a legal framework, or by order of the Court Therefore, the Trust is required to make sure that all staff working with individuals who use our service are familiar with the provisions within the Mental Capacity Act. For this reason all procedural documents will be considered, if relevant to reflect the provisions of the Mental Capacity Act 2005 to ensure that the interests of an individual whose capacity is in question can continue to make as many decisions for themselves as possible. Indicate How This Will Be Achieved. All individuals involved in the implementation of this policy should do so in accordance with the Guiding Principles of the Mental Capacity Act (Section 1) 9. LINKS TO ANY ASSOCIATED DOCUMENTS Appointment of Staff Policy Grievance and Disputes Policy Standing Financial Instructions 10. REFERENCES Agenda for Change Terms and Conditions of Service Handbook Section 26 of the General Council Conditions of Service Expenses and Benefits A Tax Guide Employment Rights Act 1996 Income Tax (Earnings and Pensions) Act APPENDICIES Relocation Expenses Application Form Page 12 of 14

13 APPENDIX 1 ROTHERHAM, DONCASTER AND SOUTH HUMBER NHS FOUNDATION TRUST RELOCATION EXPENSES APPLICATION FORM Please ensure that all parts of the form are complete and return with all relevant documentary evidence to your Line Manager/Appointing Officer. SECTION 1 (FOR COMPLETION BY EMPLOYEE) PERSONAL DETAILS Surname (Mr/Mrs/Miss/Ms/Dr/other) Forename/s. Current Address:.... Is anyone else in the household, who is employed by the NHS, claiming relocation/removal expenses: Yes/No (please delete) If yes, please state current NHS employer.. NEW EMPLOYMENT DETAILS Position and Department.. Grade and Salary. Date of Commencement PREVIOUS EMPLOYMENT DETAILS Employer name and address... Position and Department.. Grade and Salary Date of Termination Agreement Page 13 of 14

14 I confirm that I am claiming the removal expenses as per the terms outlined in 5.2. I understand that if I leave the Trust within 2 years of commencing employment, that I will be obliged to repay any monies as per below: During the first 12 months 100% 12 months to less than 16 months 85% 16 months to less than 20 months 65% 20 months to less than 24 months 50% 24 months plus - 0% I agree to notify the Trust immediately if my personal situation changes which would affect my entitlement to relocation expenses. Signed:.. Date:. Name (Block capitals) SECTION 2 (FOR COMPLETION BY ORGANISATION) APPROVAL FOR FINANCIAL ASSISTANCE I can confirm that.. will be employed on Agenda for Change Band 7 (or above) or equivalent and/or will be employed in the following hard to recruit to position. (Delete as appropriate) Name of Line Manager:.. Signed by Line Manager Signed by Executive Director of Workforce and Organisational Development.... Signed by Executive Director of Finance and Performance. Date:. Date:. Date:. Page 14 of 14