EMPLOYMENT POLICIES AND PROCEDURES REMOVAL EXPENSES POLICY AND PROCEDURE

Transcription

1 EMPLOYMENT POLICIES AND PROCEDURES REMOVAL EXPENSES POLICY AND PROCEDURE Unique ID:RML Author: HR Policy Group Category/Level/Type: Version: 4.0 Status: Technical Update January 2017 Review Date: January 2019 Authorised by: LPF Date of Authorisation: April 2007 Date added to intranet: January 2017 Key Words: Removal, Relocation Comments: Amended on January 2017

2 CONTENTS 1. Policy Statement Introduction Aims Eligibility Application Period 2 2. Level of Assistance Available Assistance Available Staff on Substantive Contracts Staff on Fixed Term Contracts Type of Expenditure Covered for Reimbursement 3 3. Repayment of Claimed Expenses 4 4. Procedure Procedure during the Recruitment Process Reimbursement of Removal Expenditure 4 5. Data Protection 5 6. Monitoring and Review 5 Appendices Appendix 1 Schedule of Specified Grades 6 Appendix 2 Examples of Expenses Suitable for Reimbursement 7 Appendix 3 Interview Stage Relocation Checklist & Approval Form 8 Appendix 4 - Reimbursement of Removal Expenses /Relocation Agreement 9 Appendix 5 Removal Expenses Claim Form 10 1

3 1. POLICY STATEMENT 1.1 Introduction NHS Lothian is committed to fair and equitable conditions of employment. NHS Lothian recognises that prospective employees may require to change their place of residence as a result of taking up a post with NHS Lothian. NHS Lothian will ensure that where this is the case employees are reimbursed appropriately. At the outset of the recruitment authorisation process, consideration should be given to the likelihood of sourcing the right skills and experience locally. All removal expenses applications will be dealt with by; General Recruitment - for applications relating to General/ non medical recruitment Medical Recruitment- for applications relating to Medical and Dental recruitment Removal expenses are payable from the directorate budget. 1.2 Aims The aims of this policy are: to ensure that NHS Lothian secures the best person for a post wherever possible, to ensure that all NHS Lothian staff are treated fairly and equitably; 1.3 Eligibility Removal expenses will only be available to categories of staff who cannot be recruited locally and are part of a national recruitment market. Examples of categories of staff are set out in Appendix 1. Should an individual's spouse or partner also be recruited to NHS Lothian at the same time, only one individual will be eligible to claim removal expenses. In addition, where NHS Lothian agrees that an employee is required to move home on taking up a post which is regarded as suitable alternative employment for the purposes of excluding them from redundancy, removal expenses may be paid to any grade of staff. This will only apply where a redundancy payment has not been made. Removal expenses will also be available to employees required to move home as part of an agreed professional training scheme. The new home must be the main residence for work purposes and it must be within reasonable travelling time of the base of employment, eg up to one hour or in the case of doctors and dentists in 30 minutes (for further details please see NHS Lothian s Removal Policy for Doctors and Dentists in Training) Application Period Eligibility to apply for removal expenses will lapse 12 months after the date of appointment. Employees wishing to apply for removal expenses should therefore make initial application within the first twelve months of appointment in their post. It is accepted that completion of payments may take longer. 2

4 Employees on Fixed Term Contracts should make an initial application as soon as reasonable possible following their appointment. 2. LEVEL OF ASSISTANCE AVAILABLE 2.1 Assistance Available Staff on Substantive Contracts NHS Lothian will pay up to 10% of the employee s basic salary as a grant towards removal expenses. There is also scope for this percentage to be increased up to a maximum of 15% in exceptional circumstances. Any reimbursement above 10% will require to be agreed, in partnership, by the Associate Director of HR and the Employee Director. In deciding whether a percentage reimbursement in excess of 10% is appropriate, factors such as personal circumstances, cost of living comparisons, seniority, the recruitment market and the nature of the role will be taken into consideration Staff on Fixed Term Contracts For staff on Fixed Term contracts, NHS Lothian will pay a proportionate amount of removal expenses based on the duration of their contract. For example if a member of staff is employed on a 12 month contract, they would be entitled to 12/24ths of the 10% reimbursement outlined above. If they were employed on a 6 month contract they would be entitled to 6/24ths of the 10% reimbursement. If the member of staff was then to resign from NHS Lothian prior to the end of the fixed term contract which attracted the removal expenses, they would be required to pay back the expenses received less any complete months of service that they had worked. 2.2 Type of Expenditure Covered for Reimbursement The payment of expenses is intended to cover expenditure such as: Expenses incurred in the search for accommodation in the new area (which may include travel and subsistence allowance while on visits); Legal expenses in the purchase and sale of the permanent home; Removal and storage of furniture and effects; Miscellaneous removal costs; Temporary accommodation in the new area. Reimbursement is limited to actual expenditure. Payment is made by payroll once receipts have been submitted. This can be on an ad hoc basis as expenditure is incurred. In line with current legislation, the first 8,000 of the grant will be tax free, provided certain conditions are met. Amounts above the 8,000 limit are subject to tax and therefore any reimbursement above 8,000 will be paid through the payroll so that the appropriate tax deductions can be made. Capital loss on the sale of a property will not be reimbursed It is up to the individual applicants to decide what expenditure associated with relocation they wish to be reimbursed. However, if an employee wishes to claim for double running costs (rent or mortgage for the old and new home) the lesser amount will be reimbursed. 3

5 Appendix 2 has a list of the most common examples of expenses for reimbursement. 3. REPAYMENT OF CLAIMED EXPENSES If, after receipt of removal expenses, an employee resigns from NHS Lothian within two years of appointment, or is dismissed by virtue of misconduct, NHS Lothian will reclaim a proportion of those removal expenses. The employee will repay the full value of the removal expenses received less 1/24 th of the value of the removal expenses for every full month worked by the employee with NHS Lothian. Redundancy is exempt from this general principle. In certain circumstances such as ill-health, service change or personal issues, an employee may be required to leave their employment with NHS Lothian within two years of their appointment. In these circumstances and following consultation with the Associate Director of HR, NHS Lothian may agree not to claim back any removal expenses already received. Before any removal expenses are paid, the employee is required to complete a relocation agreement, which includes a signed undertaking to repay claimed expenses as outlined above. In order to ensure that repayment requirements may be triggered when appropriate, each copy of the new employee s personal file should be clearly marked on the outside to indicate removal expenses have been approved. Should the employee leave within two years of appointment, the individual s line manager must contact the relevant Recruitment Team to ensure the appropriate steps are taken for reclamation of monies due to NHS Lothian. By this means the termination of employment procedure should set off the necessary steps for reclamation. 4. PROCEDURE 4.1 Procedure During the Recruitment Process During the appointments process it should be established by the appointing manager if there is an eligibility for removal expenses and, if so, the candidates should be provided with a copy of the Removal Expenses Policy and Procedure. This will outline the successful candidate s basic entitlement. On appointment, the appointing manager should complete a Relocation Checklist (Appendix 3) and submit with the appointments form to the appropriate Recruitment Team. They will then ensure that the letter formally offering the appointment confirms the successful candidate s entitlement to removal expenses. The Recruitment Team will also ensure a Removal Expenses Application Form/Relocation Agreement is enclosed with the offer letter (Appendix 4). The Recruitment Team will then confirm in writing to the candidate the level of reimbursement being offered and ensure the Removal Expenses Application Form/Relocation Agreement is returned. Any case for requesting the additional element will require to be made in writing with supporting evidence for consideration by the Associate Director of HR and the Employee Director. 4.2 Reimbursement of Removal Expenses Removal claims will only be reimbursed on the production of original copies of evidence of expenditure to the Recruitment Team. Removal expenses should be submitted on a removal expenses claim form (Appendix 5). Reimbursement will then be made by payroll as appropriate. The Recruitment Team will ensure that any request for reimbursement of removal expenses does not exceed the applicant's agreed limit. 4

6 5. DATA PROTECTION In line with Data Protection Legislation and NHS Lothian s Record Management Policy any documentation generated in accordance with this policy will be held on one personal file by your manager and the relevant Human Resource function may also keep a paper and/or electronic file. 6. MONITORING AND REVIEW This policy will be monitored to ensure its effectiveness and will be reviewed by the Lothian Partnership Forum every three years from the date of ratification. 5

7 APPENDIX 1 EXAMPLES OF CATEGORIES OF STAFF Staff Group Grade SENIOR MANAGERS Senior Manager Cohort Grade A and above MEDICAL STAFF IN CAREER GRADES Consultant and Specialty Doctors AGENDA FOR CHANGE Band 6 and above N.B. Please see paragraph 1.3 for exceptions, eg avoidance of redundancy. 6

8 APPENDIX 2 EXAMPLES OF EXPENSES SUITABLE FOR REIMBURSEMENT The following are offered as examples only to provide a guide on the items that can and cannot be included as part of a removal expenses claim. House Purchase Solicitor s fees Estate agent s or auctioneer s fees Finder s fees Stamp Duty Land Registration fees Survey fees Incidental legal expenses House Sale Legal fees Estate agent s or auctioneer s fees Incidental legal expenses Furniture removal and storage expenses including insurance of goods in transit. Property Rental Agency fees Other Expenses Travelling expenses in connection with the move Subsistence expenses in connection with the move Continuing commitments allowances Miscellaneous expenses VAT where applicable on any of the above. Excluded Expenses The following categories of expenses will normally be excluded: Interest on bridging loans Increase in insurance premiums 7

9 APPENDIX 3 Candidate Name: Interview date: INTERVIEW STAGE - RELOCATION CHECKLIST AND APPROVAL FORM Reasons for seeking to pay removal expenses: Line manager confirmation that relocation expenses can be claimed in line with the policy Signature: Print name: Position: Date: Relocation discussed with candidate at interview YES/NO Details: Contact relevant recruitment administrator to advise that provisional offer letter should contain details of eligibility for removal expenses and to include a copy of the Removal Expenses Policy and Relocation Agreement, requesting that they sign and return the agreement form to the appropriate Recruitment Team. A copy of this Relocation Checklist should then be forwarded to the appropriate Recruitment Team. Signed agreement form returned from candidate: Recruitment Team to hold application form with approval documentation. Once pre-employment enquiries complete and candidate has received final offer, all receipted expenses can be reimbursed (no requirement to provide receipts for petrol where claiming mileage). These should be detailed/attached to a normal expenses claim form, including all receipts, authorised by line manager and sent to Recruitment Team. Recruitment Team to forward authorisation memo and all claims to Finance. Removal Expenses application concluded Signature: Print name: Position: Date actioned: Date: Final offer accepted and returned Date: Date: Yes / No 8

10 APPENDIX 4 NHS LOTHIAN REIMBURSEMENT OF REMOVAL EXPENSES/RELOCATION AGREEMENT NAME: Details of appointment New Appointment Job Title: Base: Division: Whole or Part-time * Grade/Designation: Fixed Term Contract Previous Appointment Job Title: Employer: Department: Grade/Designation: Home Address: Undertaking to Repay Rented Owner Occupied I agree that if I leave the employment of NHS Lothian within two years of appointment (or for Fixed Term Contracts before the end of the contract), or am dismissed by virtue of misconduct, NHS Lothian will reclaim a proportion of those removal expenses paid to me. I agree to repay the full value of the removal expenses received less 1/24 th of the removal expenses for every full month worked by me with NHS Lothian. Signature of Claimant: Date: Please print name: Signature of Line Manager: Please print name: Date: 9

11 APPENDIX 5 REMOVAL EXPENSE CLAIM FORM NAME Date of Expenditure Nature of Claim Amount Claimed Receipt Attached () All claims must be supported by original invoices, a rental agreement, mortgage agreement and receipts for your claim to be refunded. Please Note: Claims can be made as and when expenditure is committed. Please complete this form each time you make a claim If you are claiming rented accommodation please provide evidence that the rented accommodation is a temporary residence while searching for a permanent home to purchase. If this evidence has been accepted by NHS Lothian the rent will be treated as a Relocation Cost and qualify for tax exemption. If you do not provide evidence that the rented accommodation is a temporary residence it will be identified as a taxable benefit and you will be taxed accordingly. I am/am not* seeking to purchase permanent accommodation. * delete as appropriate I confirm that the above claim is made solely in connection with my removal expenses Signed Date 10

12 Completed forms should be returned to the appropriate Recruitment team as per details below; For all General / non medical recruitment Recruitment Team Lead General Recruitment Services NHS Lothian Residencies Block 3/6 St John s Hospital Howden Livingston EH54 6PP For all Medical & Dental recruitment Medical and Dental Recruitment NHS Lothian 1 st Floor Pentland House Robb s Loan Edinburgh EH14 1TY Tax Relief Please note according to the guidelines issued by Her Majesty s Revenue and Customs in order to qualify for tax relief, removal expenses must normally be incurred or the benefits provided before the end of the year of assessment following the one in which the employee starts the new job. It is not based on when the employee moved to their new home (Her Majesty s Revenue & Customs 480 Guidance (2007). 11