Employee moving or relocation expenses policy template

This employee moving or relocation expenses policy template will help you craft a comprehensive and clear guide for your employees who are required to move or relocate for work.

It will provide them with a clear understanding of their eligibility for relocation assistance, the types of expenses that can be reimbursed, and the process for requesting and receiving reimbursements.

What are employee moving or relocation expenses?

Employee moving or relocation expenses refer to the costs incurred when an employee has to move or relocate to a new location due to professional reasons. These expenses can include costs related to moving personal belongings, travel, temporary or new housing, and other related costs.

An employee moving or relocation expenses policy should include:

• Clear definitions of who is eligible for relocation assistance
• A detailed list of reimbursable and non-reimbursable expenses
• The process for requesting and approving relocation expenses
• Guidelines for submitting receipts and other documentation
• Any limits or caps on relocation expenses

Step-by-step instructions

1. Define the purpose of the policy

Start by stating the purpose of the policy. This should be a clear and concise statement that explains why the policy exists and what it aims to achieve.

For example, the purpose of the employee relocation expense policy is to provide guidance to the organization regarding reimbursement for relocation expenses incurred by new personnel.

2. Define eligibility

Clearly state who is eligible for relocation assistance. This could include new employees, specific roles, or positions within the organization. Specify any conditions for eligibility, such as the distance of the move or the timeframe within which the move must be completed.

3. Define reimbursement amounts

Outline the maximum amounts that can be reimbursed for different roles or positions. This could include direct costs of relocation, indirect costs, and mileage. Be specific about what each of these categories includes.

4. Define direct and indirect costs of relocation

Provide a detailed list of what is considered a direct cost and what is considered an indirect cost of relocation. Direct costs might include packing and unpacking, transportation of household goods, etc. Indirect costs might include travel costs enroute, house hunting, etc. Be clear about what is not considered a direct or indirect cost.

5. Outline the process for using commercial carriers

If your organization has contracts with specific moving companies, provide details about this. If employees are allowed to use other carriers, explain the process they need to follow, such as getting estimates from a minimum number of vendors.

6. Outline the process for self-moves

If employees are allowed to move themselves, provide guidelines for this. This might include limits on reimbursement, requirements for receipts, and restrictions on who can be paid for their labor.

7. Define the process for transporting the employee and family

Provide guidelines for how employees and their families are transported to the new location. This might include a maximum reimbursement for mileage and requirements for the route taken.

8. Define the responsibilities of the organization and the employee

Clearly outline what the organization is responsible for and what the employee is responsible for. This might include approval of expenses, payment and reporting of stipends, and adherence to the policy.

9. Provide references and resources

Include links to any relevant laws, regulations, or other policies that employees might need to refer to. This could include IRS publications, organizational policies, or other resources.

Employee moving or relocation expenses policy template

Policy Brief & Purpose

Our employee moving or relocation expenses policy aims to provide clear and comprehensive guidelines for the reimbursement of expenses incurred by employees who need to relocate for work-related reasons. The purpose of this policy is to ensure that employees are adequately supported during the relocation process, and that the process for reimbursement is fair, transparent, and consistent.

Scope

This policy applies to all employees of our company who are asked to relocate permanently or temporarily for work-related reasons. This includes both domestic and international relocations. The policy does not apply to employees who choose to move for personal reasons or those who commute long distances to work.

Policy Elements

Eligibility: Employees are eligible for relocation assistance if they are asked to relocate more than 50 miles from their current work location for a period of more than six months.

Reimbursable expenses: Reimbursable expenses may include the cost of a moving company, packing and shipping of personal belongings, travel expenses to the new location, temporary housing for up to 30 days, and certain costs associated with setting up a new home (e.g., utility connection fees).

Non-reimbursable expenses: Non-reimbursable expenses include costs related to selling or buying a home, meals during the move, costs related to moving pets, and any expenses not directly related to the move.

Approval process: Employees must submit a relocation request to their supervisor or the HR department. The request should include an estimate of the expected expenses. All requests will be reviewed and approved on a case-by-case basis.

Reimbursement process: Employees must submit all receipts and documentation related to the move within 30 days of incurring the expense. Reimbursements will be made through the regular payroll process.

Limits on expenses: The company reserves the right to set a reasonable cap on relocation expenses. Employees will be informed of this cap at the time their relocation is approved.

Disclaimer

This policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor Workable will assume any legal liability that may arise from the use of this policy.