Introduction
We are committed to becoming an excellent council and recognises the importance of recruiting the best people to deliver council services. This relocation policy supports the recruitment process by offering financial assistance to new employees who have to move home to take up a job with the council.
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Employee groups covered by the policy
This policy applies to all employees, except school based employees. Employees within schools may be covered by this policy by specific acceptance of the governing body.
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Communicating the relocation policy
The manager responsible for recruitment needs to decide whether assistance with relocation expenses will be available to potential new employees. If they are not the budget holder, then they will need to agree this with the budget holder, prior to advertising the vacancy.
If it is agreed that relocation assistance may be available:
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the recruitment forms submitted for the job should indicate this; and
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the advert or recruitment information pack should let potential applicants know this.
It is likely that relocation will be most commonly applied to:
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senior jobs where there have been significant recruitment difficulties; and
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jobs which are part of a national recruitment campaign.
For further advice on eligibility for relocation please contact HR Advisory.
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Eligibility for relocation expenses
To be eligible to receive relocation expenses the employee must:
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currently live in an area that is not within a reasonable daily travelling distance of their new place of work; and
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be moving closer to their place of employment and to a home that is within a reasonable daily travelling distance of their new place of work.
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Reasonable daily travelling distance is defined as:
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a move to within 25 miles of Cambridge if that is their work base; or
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a move to within 15 miles of their work base if outside Cambridge.
The Service Head (or Chief Executive for jobs at Director level / Director for jobs at Service Head level) may agree that an employee can relocate outside the normal distance criteria. This will be dependant on the needs of the business.
The employee will not be eligible to receive relocation expenses if they are moving as a result of their partner having to relocate.
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Timescale for moving home
Relocation expenses can be claimed for up to six months from the date the employee starts work with the council.
If the employee fails to relocate within that time, without good reason, the council may require reimbursement of expenses paid out. The Service Head (or Chief Executive for jobs at Director level / Director for jobs at Service Head level) will decide on individual cases.
In exceptional circumstances, the Chief Executive and Section 151 Officer may agree to extend this period.
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Schedule of relocation expenses
The schedule of relocation expenses details what an employee can and cannot claim. The relocation expenses that can be claimed will depend on the employee’s individual circumstances.
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The types of expenses that can be claimed are:
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Selling costs
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Buying costs
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Removals and storage costs
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Temporary accommodation costs
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Temporary commuting costs
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Househunting costs
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Rental assistance
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Disturbance allowance
The claim forms are available on LGSS Direct.
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Employee obligations
The intention of the relocation policy is to enable employees to enjoy a similar style of living when they move to the area. It is not intended to provide financial assistance to facilitate an upgrade in property; nor will it support the purchase of a second home.
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Before accepting a job with the council, potential employees must:
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consider the financial and personal impact that changing job and relocating may have;
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visit the area to consider the financial implications of purchasing a new property, particularly if moving from a lower to a higher cost area;
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be aware that relocation expenses are reimbursed after expenditure is incurred; and
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contact the recruiting manager if they have any queries about the relocation policy of the council.
After accepting a job with the council, employees must:
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sign a relocation agreement;
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make all efforts to complete their relocation within 6 months;
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consider relocation expenses in precisely the same way as they would if paying for them themselves; and
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contact their manager before purchasing a new property to ensure it is within reasonable travelling distance of their work base.
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Relocation agreement
Employees are required to sign a Relocation Agreement which sets out the relevant terms of the relocation expenses with the Council:
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to relocate to take up an appointment with Cambridgeshire County Council
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are not moving as a result of their partner having to relocate and that relocation expenses are not being received from any other source
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to relocate within 6 months of starting employment with the Council
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to repay the Council relocation expenses received (or a portion of these) if they voluntarily leave or are dismissed for any reason other than redundancy within the time period stated in the relevant relocation agreement (this is normally three years from starting employment). The amount to be repaid will reduce proportionally for each completed month of service.
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Claiming and authorising relocation expenses
Before any relocation expenses can be authorised, the manager must ensure that the employee has signed the relocation agreement. This should be forwarded to HR Advisory for approval. The original signed agreement must be retained by the line manager and be available for inspection for audit purposes.
Employees must complete the Relocation Expenses Claim Form to claim their relocation expenses.
Where a loan to cover the initial deposit for rented accommodation is being claimed, (Schedule of Relocation Expenses – Rental Assistance), a separate loan agreement must also be entered into.
The manager with budget accountability for the service area is responsible for authorising the employee’s Relocation Expenses Claim Form. Relocation expenses for the Chief Executive or jobs at Director level must be approved by the relevant manager and be monitored by the Section 151 Officer.
The authorised form must be submitted to Payroll via Lets Go Direct along with scanned copies of all original VAT receipts before each claim can be reimbursed. The line manager must retain all of the original receipts for audit purposes.
A Relocation Expenses Record Sheet is available to help the employee, their manager and payroll monitor the amounts claimed.
The authorising manager and payroll are responsible for monitoring the application of the relocation policy and maintaining a record of relocation expenses.
Employees will be reimbursed for relocation expenses via payroll. No direct payments to service providers will be made.
A flowchart outlining the claiming and authorising process is available.
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Relocation expenses and tax
Income Tax
Relocation expenses up to the value of £8,000 are not taxed. After that however tax does apply. HMRC will be notified where relocation expenses paid over the value of £8,000 have been made over two financial years.
VAT
Employees must submit scanned copies of their original VAT receipts with their completed Relocation Expenses Claim Form. The employee is responsible for ensuring that the VAT amount on the invoice is recorded correctly on the Relocation Expenses Claim Form.
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Employees who leave after receiving relocation expenses
If an employee leaves within the specified recovery period following their start of employment (normally 3 years) they will be required to reimburse the Council for any relocation allowances received. This will be calculated on a monthly reducing basis. The relevant Relocation Agreement explains the terms that apply. Once the employee has completed the specified number of year’s employment, no repayment is required.
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For example, where the recovery period is 3 years the formula for calculating the amount to be reimbursed is:
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[Amount of expenses received x (36 – completed months of service)] / 36
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If an employee is appointed on a fixed term contract for less than 3 years, they will be required to reimburse the county council for any allowances received if they leave before their contract expires. This will be calculated on a monthly reducing basis, based on the length of their fixed term contract. The standard Relocation Agreement would need to be amended to reflect the length of the fixed term contract. Once the employee has completed their fixed term contract, then no repayment is required.
The formula for calculating the amount to be reimbursed is:
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[Amount of expenses received x (months in FTC – completed months of service)] / months in fixed term contract
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Varying the relocation scheme
This relocation policy can also be applied where the council has to redeploy an employee to a work base that is more than 15 miles travelling distance from their home (25 miles if the new work base is Cambridge).
In this situation the Assistant Director needs to agree the application of the relocation policy with the LGSS Director of HR.
If the employee is currently employed by the Council and subsequently gains a job that offers assistance with relocation, then expenses can be claimed for up to six months from the date the employee starts work in the new job. The employee must be eligible to receive relocation expenses, as detailed above.
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Monitoring and review
The Council will monitor the application of this policy and has discretion to review it at any time. Rates of relocation expenses will be reviewed by the LGSS Director of HR annually.
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Relevant forms
The following forms can be found on LGSS Direct:
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Schedule of relocation expenses
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Flow chart on claiming and authorising relocation expenses
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Relocation agreement
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Relocation expenses claim form
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Relocation expenses record sheet
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Relocation expenses
Find out what is included in our schedule of expenses, downloadable below.
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