Relocation Expenses for New Employees. 4 Staff Selection, Appraisal and Development. Relocation expenses will usually only be met for new employees:
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1 OTAGO POLYTECHNIC MANAGEMENT POLICY Number: MP Title: Relocation Expenses for New Employees ITPNZ Standard: 4 Staff Selection, Appraisal and Development Chief Executive Approval: Approval Date: 3 Feb 10 Effective Date: 3 Feb 10 Previous Policy Number: n/a Review Date: as required Contact Authority: Director: Organisational Development Status: Current Purpose Application This policy provides for an appropriate contribution by the Polytechnic to the expenses of relocation of new employees. Relocation expenses will usually only be met for new employees: for whom a contribution to relocation expenses is necessary to secure their employment, and who are taking up a contract of employment of not less than 0.7 FTE of a fulltime permanent position or a fixed term agreement for a period of not less than three (3) years. Referral Documents This policy should be read in conjunction with the policy MP0431 Recruitment and Appointment of Staff Responsibilities 1. Any contribution to relocation expenses is discretionary and shall be by agreement between the potential employee, Manager/Head of School and Director: Organisational Development at the time of appointment, provided that all conditions contained within this policy are met. 2. Approval for granting a contribution to relocation expenses within this policy and schedule 1, is delegated to the Authorising Manager for the appointment under consideration (refer to MP0431 Recruitment and Appointment of Staff, clause 6 Authorising Managers) and can only be agreed in consultation with the Director: Organisational Development for budgetary consideration. A request to fund relocation expenses must be indicated at the time of requesting approval for a new employment agreement 3. The Chief Executive may approve a contribution to relocation expenses which falls outside of the requirements of this policy and Schedule 1. Such approval shall be in writing, and be granted prior to any negotiation with a potential new employee. Policy Requirements 1. Nature and Scope of Contribution 1.1 Contributions may be agreed towards the removal of personal and household effects, travel and temporary accommodation (including removal of vehicles and family pets) on arrival of the new employee and any qualifying parties. A qualifying party may be the partner or spouse of the appointee, or any person who is directly dependent on the appointee for care. 1.2 Contributions will be by way of direct payment by the Polytechnic of the costs incurred in relocating. Where direct payment is not practicable the new employee shall be reimbursed for prior approved expenditure on production of receipts. 1.3 Costs associated with buying/selling houses or real estate are not to be taken into consideration. Page 1 of 5
2 2. Removal of Effects 2.1 Contribution towards the actual cost of removal of personal and household effects up to the limits prescribed in Schedule 1 may be granted. 2.2 At least two quotations for removal of effects shall be arranged by Human Resources in consultation with the new employee. Once the removal company has been selected and approved by Otago Polytechnic, the new employee will be contacted directly by the selected removalist to make all necessary arrangements. 2.3 The contract for the removal of effects shall be let through and paid for directly by the Polytechnic. 3. Travel 3.1 The maximum contribution for travel shall be the lowest economy class airfare from city of origin to Dunedin available at the time of booking. 3.2 For new employees from within New Zealand who relocate by private vehicle the maximum reimbursement shall be the economy airfare from city of origin to Dunedin less 30%. 4. Temporary Accommodation on Arrival The cost of up to four (4) weeks of temporary accommodation on arrival in Dunedin may be granted to new employees, up to the limits prescribed in Schedule Employment Agreement All commitments to relocation expense costs being met by the Polytechnic must be documented and quantified in the employment agreement along with a bond clause (see point 6 below). 6. Bond An appointee leaving the service of the Polytechnic within three (3) years of taking up appointment will be required to refund a proportion, based on length of service, of the expenditure incurred by the Polytechnic under this policy. Accordingly, a bond agreement shall be included in the employment agreement, in the form prescribed in Schedule 2. No monies shall be paid for committed relocation expenses until the employment agreement and bond clause is signed. 7. Financial Responsibility All contributions to relocation expenses will be borne centrally by Human Resources. Approved by Chief Executive Date: 3 February Page 2 of 5
3 Schedule 1 SCHEDULE OF RATES 1. Removal Expenses 1.1. The maximum total contribution in NZ dollars normally allowed for removal expenses are: New Zealand South Island North Island Australia / South Africa USA / Canada UK / Europe / Singapore For appointee only $2,500 $4,500 $9,000 $15,000 $12,000 Appointee plus family $4,000 $7,000 $12,000 $17,000 $14,000 NB: Equivalencies in other currencies may be negotiated as necessary between the parties and with the approval of the Director: Organisational Development Where special circumstances exist, eg extreme difficulties in filling specific vacancies, Managers may request additional contribution of costs from the Director: Organisational Development Contributions within the limits outlined in this policy may be made for any of the costs associated with removal of personal and household effects, including but not limited to packaging, transport, insurance, storage. Costs associated with the removal of vehicles and family pets may also be included at the discretion of the Director: Organisational Development. 2. Temporary Accommodation 2.1. The maximum total contributions normally allowed for temporary accommodation are: Appointee only $3,500 Appointee plus one or more qualifying parties $4,750 Page 3 of 5
4 Schedule 2 BOND AGREEMENT The following shall be included in any letter of offer to a new appointee for whom relocation expenses are agreed to be paid. No monies shall be paid or committed in respect of relocation expenses until this agreement is signed. Relocation Expenses 1. Subject to Clause 2 below, the employee shall receive a contribution to relocation expenses of up to $. 2. The employee agrees that, should the employee leave his or her position with the Polytechnic within three (3) years of commencing employment, the employee shall repay to the Polytechnic a proportion of the relocation expenses actually paid or reimbursed, that proportion being determined by the following formula: (Gross relocation expenses divided by 36) x (36 less the number of complete months employed) All or part of any sum payable to the Polytechnic by the employee under this clause may be deducted by the Polytechnic from the employee s final pay. 3. The employee shall not be liable to repay this proportion of the relocation expenses if the reason for leaving his or her position is dismissal, death, or serious illness, accident or injury which would reasonably be expected to necessitate leaving this position of employment. Signed: Name Date Page 4 of 5
5 Schedule 3 CLAUSE FOR LETTER OF ENGAGEMENT In addition, Otago Polytechnic will pay for actual and reasonable relocation and temporary accommodation expenses for your relocation from to Dunedin. Relocation expenses will be paid for up to $ and temporary accommodation of up to $. This is subject to the terms and conditions as outlined in Schedule 1 and the bond agreement (Schedule 2), which are attached to and form part of this agreement. At least two quotations for removal of effects shall be arranged by Human Resources in consultation with yourself. Once the removal company has been selected and approved by Otago Polytechnic, you will be contacted directly by the selected removalist to make all necessary arrangements. Contribution towards relocation or temporary accommodation is by way of direct payment by Otago Polytechnic. Where direct payment is not practicable you shall be reimbursed for prior approved expenditure on production of receipts. Page 5 of 5
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