RELOCATION ALLOWANCE AND EXCESS TRAVEL PAYMENT MANAGEMENT GUIDELINES AUGUST 2008

Transcription

1 RELOCATION ALLOWANCE AND EXCESS TRAVEL PAYMENT MANAGEMENT GUIDELINES AUGUST

2 1. Introduction These guidelines should be read in conjunction with the Policy on Relocation Allowance and excess travel. 2. Initial Assessment of Allowance An initial assessment of the allowance should take place involving the employee affected, the line manager/head of Department and HR Advisor. 2.1 Additional Mileage The payment of either the relocation or excess travel allowance is based on any additional mileage incurred by the employee. To calculate additional mileage you take shortest possible journey from the employee s home to their new place of work. This should be assessed by using the AA website using the Easy maps and routes facility. The journey distance is calculated by entering the start and end destinations either using town names or postcodes. This journey should then be compared to the employee s previous journey from home to their previous place of work using the same method. Therefore additional mileage equals the difference between new journey and previous journey. 2.2 Public Transport The cheapest method of public transport should be assessed by establishing the cost of season tickets for travel on both bus/coach and rail/tram networks. Information can be obtained from national rail enquiries on or for local bus and rail travel in the Manchester region The cost should then be compared to the cost of the employee s previous journey to work using public transport. The cost of car parking for people using train/tram stations should also be taken into account where appropriate and employees should be able to demonstrate that the car parking arrangements are the cheapest option available to them. Employees will be asked to provide evidence that they are incurring car parking fees and higher public transport costs where they haven t previously. 2.3 Relocation Lump Sum Option The payment of the relocation lump sum is based upon the mileage from their old home to the new place of work. This mileage should be assessed using the AA website as described in section 2.1. The maximum amount that an employee can claim under this option is 8,

3 2.4 Excess Travel Calculations Calculations for full time members of staff should be based on the number of working days per year. This figure is based on 52 weeks a year, less annual leave, 8 bank holidays and 3 concessionary days multiplied by 5 days per week. So for example, grades 8 10 will have 52 weeks minus 7 weeks, minus 8 bank holidays and 3 concessionary days multiplied by 5 days per week which comes to 214 days per year. Someone in grade 6 who has 30 days holiday per year will have 52 weeks minus 6 weeks annual leave, minus 8 bank holidays and 3 concessionary days multiplied by 5 days per week which comes to 219 days per year. The examples that follow use the University s current lower mileage rate of 25 pence per mile. Example 1: Extra journey of 10 miles each way per day 20 miles x 25 p x 214 days per year = An Allowance of 1070 per annum or per month, giving a total figure of 2,140 over 2 years. Example 2: Extra journey of 40 miles each way per day 80 miles x 25 p x 214 days per year = An Allowance of 4,280 per annum or per month, giving a total figure of 8,560 over 2 years. Example 3: Bus Journey that costs 3 per day more than previous bus journey to work. 3 x 214 days per year = An Allowance of 642 per annum or per month, giving a total figure of 1,284 over 2 years. Example 4: Train Journey that costs 650 per annum for the season ticket where someone used to just drive 5 miles to work (214 x 3.00 per day car parking) minus (10 x 25 p x 214 (cost of 10 miles a day)) = An Allowance of 757 per annum or per month, giving a total figure of 1514 over 2 years. Example 5: Employee moves house 6 months after relocating to new location. In the 6 months prior to the move, the employee has to travel 20 miles further than previously, in total an extra 40 miles per day. Before moving the employee will receive the additional mileage allowance of 40 miles x 25 p x 214 = 2,140 per annum or per month, giving a total figure of 1,070 for 6 months

4 After 6 months and moving has been completed, a one off payment of 3,210 (40 x 25 p x 214 x 2 minus the amount already paid as excess travel allowance). This final figure would be paid as a one off payment once completion of moving had occurred. Evidence of completion will normally take the form of a letter from the legal representatives handling the conveyance. The payment must be made in line with the policy sections 3.2, 6.3 and 6.6. Employees employed on fractional contracts should receive appropriate pro rata payments. For example an employee on a 0.6 contract should receive 60% of the full monthly allowance. If any employee in receipt of the monthly allowance should suffer long term sickness absence as defined in the University s Sickness Absence Policy, a review of whether or not the monthly allowance should be suspended will be taken as part of the sickness absence review process. 3. Repayment of Allowance If an employee in receipt of any of the above payments during the 2 year period following relocation, leaves employment with the University, they will be required to repay the financial assistance in proportion to the number of months worked since the relocation as follows: Months worked Amount repayable % 4 90 % 6 80 % 8 70 % % % % % % % 22 5 % 4. Change of Address Any change of home address within the two-year period must be notified to the HR Department as it may affect payment of your allowance

5 5. Written Confirmation Once the assessment of the allowance has taken place the HR Advisor will write to the individual concerned (with a copy to the line manager/head of Department) confirming the allowance to be paid along with the start and end dates. One copy of this letter should be signed by the individual and returned to the HR Department. (A standard template letter appears in Appendix 2). 6. Notifying the Finance Department The Finance Department should be notified of the monthly allowance to be paid along with the start and end dates for the payment. The Head of Department s signature will be required to authorise any request for payment. Proposed by: Approved by: Date: - 5 -

6 Appendix 1 Examples of Allowances Total extra mileage Monthly allowance Total over two years per day ,560* * If in receipt of a one off lump sum, the maximum payable is 8,

7 Appendix 2 <DATE> Dear <NAME> RELOCATION ALLOWANCE Further to our meeting on <DATE> I am pleased to confirm the details of the relocation allowance that you will receive. You will receive an allowance of <AMOUNT> per month, paid with your salary. Payment will commence from <START DATE> for a period of two years until <END DATE> and will be subject to income tax and national insurance deductions, but will not be pensionable. Or You will receive an allowance of <AMOUNT> per month, paid with your salary until you complete your move, upon which you will receive a lump sum payment in line with relocation allowance policy. Payment will commence from <START DATE> until you provide evidence of completing your move (upon which time the monthly allowance will cease and you will receive the one off payment). If you do not move within 1 year of <START DATE> the monthly allowance will cease on <END DATE> The monthly allowance will be subject to income tax and national insurance deductions, but will not be pensionable. Any change in home address during this two year period must be communicated in writing to Human Resources to allow for a reassessment of the allowance to take place. Please sign and return one copy of this letter to confirm your acceptance of the above details. Yours sincerely <HR ADVISOR> cc <HEAD OF DEPARTMENT> I agree to communicate any change in home address in writing to the HR Department during the two year period for which the relocation allowance is 2008 Version 2

8 paid, and agree that the relocation payments quoted above will cease on the date stated. If I leave the University s employment before the date when the allowance is due to end, I agree that the University may deduct from my final salary a proportion of the allowance already paid to me in accordance with the scales in the University s Relocation Allowance procedure. Signed Date 2008 Version 2