Sample Relocation Policy Procedures

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Relocation Policy & Procedures

Field	Value
Document Title	Relocation Policy & Procedures
Document Type	Perquisites & Programs
Company	<Company Name>
Version	<Version Number>
Effective Date	<Date>
Last Reviewed	<Date>
Next Review Due	<Date> (e.g., 12 months from Effective Date)
Policy Owner	Total Rewards, <Company Name>
Policy Sponsor	<Executive Title> (e.g., Chief People Officer)
Approvers	<Approver Name/Title> and <Approver Name/Title>
Geographic Coverage	<Country/Region/Global>
Related Policies	Mobility Assignment Policy, Travel & Expense Policy, Code of Conduct, Data Privacy Policy

Document Purpose and Objectives

• Provide a consistent framework for domestic and international relocations aligned to <Company Name> talent and business strategies.
• Offer a market-competitive, equitable relocation package that balances employee experience, cost stewardship, and compliance.
• Define clear roles, responsibilities, and procedures for initiating, approving, delivering, and closing relocations.
• Establish governance, tax, and legal standards to reduce risk and ensure accurate payroll reporting.

Guiding Principles

• Align with talent strategy and workforce planning.
• Promote fairness through policy tiers tied to role, level, and business need.
• Ensure compliance with tax, immigration, employment, and data privacy laws in each applicable jurisdiction.
• Provide transparency in benefits, limits, and responsibilities.
• Optimize cost and vendor performance using negotiated rates and measurable service levels.

Scope and Applicability

In Scope

• Permanent relocations initiated by <Company Name> for business needs within or across <Country> and international borders.
• Employee-initiated relocations approved by leadership based on business necessity.
• New hire relocations when specified in offer letters.
• Relocations linked to transfers, promotions, position changes, or site consolidations.

Out of Scope

• Short-term assignments, commuters, and rotational assignments covered by Mobility Assignment Policy.
• Remote work moves without business necessity or approval.
• Student internships unless explicitly authorized.
• Third-country nationals on assignment where host employment remains temporary.

Eligibility Criteria

• Regular full-time and regular part-time employees with standard hours of at least <Hours> per week.
• Employment categories excluded unless explicitly approved: contractors, agency temps, interns.
• Minimum service requirement for employee-initiated moves: <Months> months tenure unless waived by <Title>.
• Relocation must be at least <Distance> km/miles from current primary residence to new work location, or increase commute time by <Minutes> minutes, unless otherwise approved.

Policy Structure and Tiers

Relocation Types

• Domestic: Move within <Country>.
• International Inbound: Move from another country to <Country>.
• International Outbound: Move from <Country> to another country.
• New Hire Relocation: For external candidates.
• Employee-Initiated Relocation: Requested by employee for personal reasons but aligned to business need.

Policy Tiers by Role Level

• Tier 1: Executive and Senior Leadership (e.g., VP and above).
• Tier 2: Management and Critical Skills.
• Tier 3: Professional/Individual Contributor.
• Tier 4: Entry Level/Graduate.

Summary of Benefits by Tier (Illustrative)

Benefit	Tier 1	Tier 2	Tier 3	Tier 4
Household Goods Shipment	Full pack/ship, up to <Weight> lbs/kg, storage up to <Days> days	Full pack/ship, up to <Weight> lbs/kg, storage up to <Days> days	Pack/ship up to <Weight> lbs/kg, storage up to <Days> days	Self-pack stipend <Currency><Amount>
Temporary Housing	Up to <Days> days	Up to <Days> days	Up to <Days> days	Up to <Days> days
Home Finding Trip	<Number> trips, <Nights> nights each, employee + <Dependents>	<Number> trips, <Nights> nights each	1 trip, <Nights> nights	1 trip, <Nights> nights
Lease Break Assistance	Up to <Currency><Amount>	Up to <Currency><Amount>	Up to <Currency><Amount>	Up to <Currency><Amount>
Home Sale Assistance	Guaranteed buyout or <Currency><Amount> support	Marketing assistance + <Currency><Amount> closing costs	Marketing assistance	Not included
Lump-Sum Supplement	<Currency><Amount> to <Currency><Amount>	<Currency><Amount> to <Currency><Amount>	<Currency><Amount>	<Currency><Amount>
Spouse/Partner Support	Career support up to <Currency><Amount>	Career support up to <Currency><Amount>	Job search resources	Job search resources
Tax Assistance	Gross-up on taxable benefits at <Percentage> or supplemental rate	Gross-up on taxable benefits at <Percentage>	Gross-up on taxable benefits at <Percentage>	No gross-up unless required

Detailed Policy Provisions

Pre-Move Planning and Authorization

• Business case and cost estimate prepared by hiring manager or HRBP using <Company Name> relocation estimator tool.
• Authorization by <Title> within approved tier and budget prior to offer or transfer letter issuance.
• Initiation with <Vendor Name> within <Days> business days of acceptance to schedule consultation.

Standard Relocation Benefits (Domestic)

Household Goods Shipment

• Coverage includes professional packing, loading, transportation, delivery, and one-time unpacking.
• Weight or volume limit: up to <Weight> lbs/kg per tier; items above limit at employee expense.
• Exclusions: hazardous materials, illegal items, perishable goods, boats, RVs, and items prohibited by carrier.
• Storage-in-transit up to <Days> days if needed between home availability dates.
• Valuation coverage up to <Currency><Amount> per shipment; higher coverage available at employee expense.
• Two vehicles shipped for Tier 1, one for Tier 2, none for Tier 3/4 unless preapproved.

Temporary Living

• Furnished housing or hotel for up to <Days> days from move date; reasonable utilities included.
• Daily meal incidental allowance of <Currency><Amount> per person up to <Days> days if housing lacks kitchen.
• Pets: pet fees up to <Currency><Amount> for temporary housing if permitted by property.

Home Finding Trip

• One or two trips for employee and spouse/partner; coach airfare, lodging, ground transport, meals per Travel Policy.
• Trip duration per tier; combine with school and neighborhood tours if applicable.
• Bookings must follow Travel & Expense Policy and use approved travel agency.

Lease Breakage and Rental Support

• Reimbursement for lease termination penalties up to <Currency><Amount> with documentation.
• Application fees, broker fees, and security deposit assistance up to <Currency><Amount> where customary.

Home Sale Assistance (If Eligible)

• Marketing assistance through <Vendor Name>, including market analysis and listing agent referral.
• Closing cost assistance up to <Currency><Amount> for seller’s customary costs.
• Buyout program availability for Tier 1 only; subject to separate guidelines and tax treatment.

New Home Purchase Assistance

• Closing cost credit up to <Currency><Amount> for buyer’s customary costs.
• Not a down payment; employee responsible for mortgage qualification.

Miscellaneous Relocation Allowance (MRA)

• Lump-sum stipend of <Currency><Amount> to cover incidental costs such as utility hookups, driver’s license, and small furnishings.
• Paid via payroll, subject to tax and, if applicable, gross-up.

Travel to New Location

• One-way travel for employee and eligible dependents per Travel Policy.
• Mileage reimbursement at <Currency><Amount> per mile/km for POV, not to exceed cost of coach airfare.
• En route lodging up to <Nights> nights when driving, meals per diem per Travel Policy.

School Search and Settling-In Services

• School search consultancy up to <Hours> hours.
• Settling-in assistance including bank account setup guidance, local registrations, and community orientation.

International Relocation Provisions (Additional)

Immigration and Work Authorization

• Employer-sponsored work permits/visas for employee and eligible dependents through <Vendor Name>.
• Legal fees and government charges covered for initial entry and one renewal, subject to policy caps.
• Employee must provide accurate documentation; misrepresentation may result in disciplinary action.

Tax Support and Equalization (If Applicable)

• Tax briefing for employee with <Vendor Name> covering host and home country obligations.
• Preparation of <Number> home and host tax returns funded by <Company Name> for the year of move and the following year if needed.
• Tax equalization offered for international moves exceeding <Months> months, per Mobility Assignment Policy.

Shipment and Storage for International Moves

• Air freight for essentials up to <Weight> lbs/kg.
• Ocean freight for remainder up to <Weight> lbs/kg.
• Long-term storage in home country up to <Months> months when not all goods are shipped.

Temporary Accommodation and Destination Services

• Temporary housing up to <Days> days in host location.
• Destination services including home search, local registrations, and orientation up to <Days> days of support.

Language and Cultural Training

• Language lessons up to <Hours> hours for employee and spouse/partner.
• Cross-cultural training session up to <Hours> hours to support integration.

Benefits Not Covered

• Luxury or premium upgrades beyond policy (business class air, premium housing) unless approved.
• New furniture purchases or major appliance replacements.
• Losses due to market fluctuation on home sale or currency exchange.
• Fines, penalties, or costs due to employee negligence or non-compliance.
• Transport of prohibited items or personal collections beyond valuation limits.

Tax and Payroll Treatment

General Principles

• Taxability varies by country; benefits may be taxable compensation subject to withholding and reporting.
• Unless stated otherwise, taxable relocation benefits will be reported through payroll and may be grossed up at <Percentage> or at the supplemental rate in <Country>.
• Non-taxable reimbursements must be supported by receipts and business purpose, compliant with local regulations.
• All amounts paid on the employee’s behalf may be imputed to wages if required by law.

Gross-Up Policy

• Eligible taxable benefits for gross-up: MRA, temporary living, home finding trip, en route meals and lodging, lease break fees.
• Excluded from gross-up: optional upgrades, policy exceptions, costs due to non-compliance.
• Gross-up rate: <Percentage>% federal, plus applicable state/provincial and local rates; true-up at year-end if needed.

Reporting and Timing

• Benefits processed within the pay cycle following receipt of complete documentation.
• Cutoff dates for year-end reporting communicated by Payroll each year.
• International moves require shadow payroll in host or home country as advised by <Vendor Name>.

Repayment Agreement (Clawback)

Conditions

• Employees who voluntarily resign or are terminated for cause within <Months> months of move completion must repay all or a portion of relocation costs.
• Repayment schedule from move completion date:
  • 0–<Months> months: 100%
  • <Months>–<Months> months: <Percentage>%
  • <Months>–<Months> months: <Percentage>%
• Repayment may be waived for involuntary layoff, role elimination, or medical disability at <Title> discretion.

Method of Repayment

• Amounts may be deducted from final pay to extent permitted by law and signed authorization.
• Any balance due must be repaid within <Days> days of termination date.

Approvals, Exceptions, and Governance

Standard Approvals

• HRBP validates eligibility and tier.
• Hiring manager secures budget within cost center.
• Total Rewards approves policy interpretation, taxation, and exceptions.

Exceptions Process

1. Manager submits exception request with business rationale, cost estimate, and tier details.
2. HRBP reviews against policy and benchmarks.
3. Total Rewards provides recommendation and tax implications.
4. Final approval by <Title> for exceptions up to <Currency><Amount>; by <Title> above that threshold.
5. Approved exceptions documented and stored with relocation record.

Conflict of Interest and Ethics

• Employees and managers must disclose any relationships with vendors or agents.
• Gifts or inducements from vendors are prohibited per Code of Conduct.

Roles and Responsibilities

Employee

• Provide accurate information, meet documentation deadlines, and comply with immigration and tax requirements.
• Safeguard all receipts and submit expenses timely through <Expense System>.
• Notify HR of changes in move timing, family status, or housing availability.

Manager

• Build compelling business case and secure approvals.
• Support scheduling, work transitions, and team communications.
• Monitor costs against budget and escalate risks early.

HR Business Partner

• Guide eligibility, tier selection, and approvals.
• Coordinate initiation with <Vendor Name> and provide employee orientation.
• Partner with Total Rewards and Payroll for taxation and compliance.

Total Rewards (Policy Owner)

• Maintain policy, set thresholds, manage vendor relationships, and track performance metrics.
• Approve exceptions, determine gross-up methodology, and benchmark competitiveness.
• Provide governance reporting and continuous improvement recommendations.

Payroll and Finance

• Process payments, impute taxable amounts, and manage gross-ups.
• Maintain accurate accounting of relocation accruals and actuals.
• Support audits and ensure year-end tax reporting.

Global Mobility and Immigration Counsel

• Manage immigration strategy, filings, and renewals with <Vendor Name>.
• Ensure adherence to host country employment and payroll obligations.
• Advise on permanent establishment and corporate tax risks.

Implementation Guidelines

Pre-Offer and Offer Letter Language

• Include eligibility, tier, and high-level benefits in offer or transfer letter.
• State that benefits are subject to this policy, tax laws, and proof of expenses.
• Reference repayment agreement and require the employee’s signed acknowledgment.

Initiation and Timeline

1. Manager completes Relocation Request in <HRIS System> with cost center and tier.
2. HRBP verifies details and secures approvals.
3. Total Rewards initiates services with <Vendor Name> and schedules employee consultation.
4. Employee receives move packet and acknowledgment form to sign.
5. Vendor conducts needs assessment, books surveys, and proposes timeline.
6. Payroll sets up relocation codes and tax treatment in system.
7. Move executes; benefits paid or reimbursed per policy; ongoing support provided.
8. Case closes after final audit, repayment agreement confirmed, and employee survey obtained.

Budgeting and Cost Controls

• Use standardized cost estimates and not-to-exceed caps by tier.
• Require two quotes for shipments above <Currency><Amount>.
• Utilize preferred supplier rates and avoid peak season surcharges when feasible.
• Apply per diem and lodging caps per Travel & Expense Policy.

Documentation and Recordkeeping

• Store approvals, receipts, and contracts in <Document Repository> for at least <Years> years or longer as legally required.
• Limit access to those with a business need per Data Privacy Policy.

Vendor Management and Service Levels

Preferred Vendors

• Household goods mover: <Vendor Name>
• Temporary housing provider: <Vendor Name>
• Immigration counsel: <Vendor Name>
• Tax provider: <Vendor Name>

Service Level Expectations

• Initial contact with employee within <Hours> hours of initiation.
• Provide survey and quote within <Days> business days.
• Resolve service issues within <Days> days or escalate.

Performance Metrics

• On-time pickup and delivery rate target: <Percentage>%.
• Damage claim rate below <Percentage>% of shipments.
• Employee satisfaction score target: <Score>/5.
• Cost variance to estimate within ±<Percentage>% per move.

Compliance, Risk, and Data Privacy

Legal Compliance

• Observe employment, housing, consumer, and transportation laws in origin and destination.
• For international moves, ensure immigration status before work begins; no work until proper authorization is obtained.
• Maintain records for tax audit readiness, including receipts, gross-up calculations, and payroll journals.

Data Privacy

• Personal data processed per Data Privacy Policy and applicable laws in <Country/Region>.
• Share only minimum necessary data with vendors under data processing agreements.
• Employee rights requests handled through <Privacy Office Contact>.

Health, Safety, and Security

• Duty of care includes travel advisories, secure temporary housing, and emergency contacts.
• For high-risk locations, consult <Security Vendor Name> for pre-travel briefings.

Special Situations and Clarifications

Dual Career and Family Considerations

• Spouse/partner job support up to <Currency><Amount> may include resume coaching, local market guidance, and networking introductions.
• Dependent education assistance for international moves up to <Currency><Amount> for application/testing fees if customary.

Pets and Specialty Items

• Pet relocation covered up to <Currency><Amount> for health certificates and airline fees; quarantine costs excluded unless mandated by law.
• Special handling for pianos, fine art, and antiques must be preapproved; additional insurance at employee expense.

Delayed Family Moves and Split Households

• If the family relocates later due to school year or housing, temporary living benefits may be split within total day limits.
• Duplicate housing assistance may be considered as an exception with clear caps.

Remote and Hybrid Work Implications

• If role is designated hybrid or onsite, proximity to work location remains required.
• Remote role relocations must be compliant with tax nexus, payroll registrations, and entity presence rules; preapproval required.

Expense Reimbursement Procedures

Submission Standards

1. Submit expenses within <Days> days of incurrence via <Expense System> with receipts and business purpose.
2. Convert foreign currency using <FX Source> rate on transaction date or company rate card.
3. Flag relocation expenses using code <Relocation Code> for payroll tax processing.
4. Approver reviews within <Days> days; returns for correction if incomplete.
5. Payroll processes taxable items in the next cycle; Finance posts to cost center and project code.
6. Keep original documentation for <Years> years or per local law.

Audit and Compliance Checks

• Quarterly sampling of <Percentage>% of relocations for policy adherence.
• Overpayments reconciled in payroll; underpayments processed promptly.

Review and Approval Process for This Policy

Maintenance Cycle

• Policy reviewed at least annually by Total Rewards with input from HRBP, Payroll, Finance, Legal, and Global Mobility.
• Benchmark against market practices, cost trends, and employee satisfaction data.

Change Control

1. Total Rewards drafts revisions with redlines and rationale.
2. Legal and Tax review for compliance impacts.
3. Finance assesses cost implications.
4. Executive sponsor approves final version.
5. Publish updated policy and effective date; archive prior versions.

Metrics and Reporting

Key Performance Indicators

• Average relocation cost by tier and type vs. budget.
• Time-to-fill roles requiring relocation vs. market.
• Employee satisfaction and net promoter score for relocation experience.
• Vendor performance against SLAs and claim rates.
• Tax gross-up accuracy and year-end adjustment volume.

Reporting Cadence

• Monthly dashboard to HR leadership.
• Quarterly business review with vendors.
• Annual summary to Executive Committee with recommendations.

Glossary of Terms and Definitions

Definitions

• Household Goods: Personal property authorized for shipment excluding prohibited items.
• Storage-in-Transit: Temporary storage of household goods between pickup and final delivery.
• Gross-Up: Additional pay to cover employee tax liability on taxable benefits.
• Shadow Payroll: Host or home payroll reporting used to properly withhold and report tax for international assignees or transferees.
• Buyout Program: Home sale option where company or vendor purchases employee’s home per specific program rules.
• Temporary Living: Short-term housing provided near the new work location during transition.
• MRA: Miscellaneous Relocation Allowance, a lump sum for incidental costs.
• Tier: Level of benefits determined by job level, criticality, and market practice.
• Inbound/Outbound: Movement into or out of a given country.
• Eligible Dependents: Spouse/partner and children meeting eligibility criteria under local law and company policy.

Appendices and References

Reference Documents

• Travel & Expense Policy, <Link or Location>
• Mobility Assignment Policy, <Link or Location>
• Data Privacy Policy, <Link or Location>
• Code of Conduct, <Link or Location>

Required Forms

• Relocation Repayment Agreement, <Form ID>
• Relocation Acknowledgment, <Form ID>
• Immigration Questionnaire, <Form ID>

Communication to Employees and Managers

Welcome to Your Move with <Company Name>

Moving for a new role is a big step, and we are here to make it as smooth as possible. This guide explains how your relocation benefits work, what you need to do, and where to get help.

What You Can Expect

• A dedicated consultant from <Vendor Name> will contact you within <Hours> hours after your relocation is initiated. They will help plan your move, schedule surveys, and coordinate services.
• You will receive a summary of your benefits based on your tier. This will include what is covered, any caps, and how taxes are handled.
• Your HR contact and manager will support your timeline, start date, and any questions.

Your Benefits at a Glance

• Professional packing and shipment of your household goods within the weight limits set for your tier.
• Temporary housing for up to <Days> days while you secure permanent accommodation.
• A home finding trip to explore neighborhoods, schools, and housing options.
• An allowance to cover incidental moving costs like utility connections and local registrations.
• For international moves, immigration support and destination services to help you settle in.

How to Get Started

1. Check your offer or transfer letter for your relocation tier and benefits.
2. Watch for an email from <Vendor Name> and schedule your consultation.
3. Review your move plan and confirm key dates.
4. Submit your Relocation Acknowledgment and any required immigration documents.
5. Book travel through the company’s travel agency and keep receipts where needed.

Paying for Your Move and Reimbursements

• Some services are billed directly to <Company Name> (for example, household goods shipment). Others are reimbursed to you through payroll.
• If a benefit is taxable, you may see tax withholding or a gross-up on your paycheck. We will clearly label these items.
• Submit expenses within <Days> days using <Expense System> and include receipts. If you are unsure whether something is covered, ask before you buy.

Housing and House Hunting Tips

• Work with recommended real estate agents who know your market and price range.
• If renting, ask about lease terms, fees, and pet policies. Keep copies of your lease and any termination letters.
• If buying, remember that closing cost assistance is not a down payment; you will need to qualify for your mortgage independently.

Family Support

• Your spouse or partner may be eligible for career support services. Ask your consultant about available options and caps.
• For international moves, language and cultural training can help you and your family adjust more quickly.

Timing, Taxes, and Your Pay

• Your benefits are available for a set period. Plan ahead to use them before they expire.
• Some benefits are taxable by law. If your package includes tax gross-up, we will add pay to help cover the taxes.
• You will receive a year-end summary of taxable relocation benefits as part of your pay documents.

If Plans Change

• Tell your HR contact and consultant right away if your start date or housing plans change. We may be able to adjust services and reduce unnecessary costs.
• If you consider canceling or postponing your move, we will guide you on any impacts to your benefits.

If You Leave <Company Name> After Moving

• If you resign within a certain time after your move, you may need to repay some or all of the relocation costs. Please review and keep your signed repayment agreement.

Getting Help

• Your <Vendor Name> consultant is your first stop for move coordination and services.
• For policy questions, contact Total Rewards at <Email Address>.
• For payroll or tax questions, contact Payroll at <Email Address>.
• For immigration questions, contact <Immigration Contact>.

Thank You

We appreciate your commitment to taking on a new role and location. We are excited to support your success at <Company Name> and look forward to welcoming you to your new home.

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Document Information:

• Document Type: Relocation Policy & Procedures
• Category: Perquisites & Programs
• Generated: August 25, 2025
• Status: Sample Template
• Next Review: <Insert Review Date>

Usage Instructions:

1. Replace all text in angle brackets < > with your company-specific information
2. Review all sections for applicability to your organization
3. Customize content to reflect your company's policies and local regulations
4. Have legal and HR leadership review before implementation
5. Update document header with your company's version control information
6. At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.