Relocation policy NYYPCTHR04. Sheila Duckett, Senior HR Advisor. 17 July 2007 (0.001) assessment

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1 Title: Reference No: Relocation policy NYYPCTHR04 Owner: Amanda Wilcock, Associate Director of Human Resources Author: Sheila Duckett, Senior HR Advisor First Issued On: 17 July 2007 (0.001) Latest Issue Dat e: 15 October 2007 (0.002) Operational Date: (usually 3 months from date of issue or date of latest issue if immediate) Review Date: 1 year Consultation Process: HR Employment Policy Group Directors Policy Sponsor: Amanda Wilcox, Associate Director of Human Resources Ratified and Approved by: Distribution: Insert relevant Committee name All staff in line with Policy on Policies Compliance: Mandatory for all permanent & temporary employees, contractors & sub-contractors of North Yorkshire & York PCT Equ ality Statement: This policy has been subject to a full equality impact assessment CHANGE RECORD DATE AUTHOR NATURE OF CHANGE VERSION No Sheila Duckett, Senior HR Advisor New Policy for NYYPCT Sheila Duckett Amendments made approval at LNC NHS North Yorkshire & York Page 1 of 20 Doc Title:\relocation NHS North Yorkshire & York Chair: Kevin McAleese Chief Executive: Jayne Brown OBE

2 CONT ENTS Page No 1. POLICY Introduction Scope Policy Statement 4 2. CONDITIONS OF ACCEPTANCE 4 3. RELOCATION OPTION S Relocation for emp loyee who owns a property prior to appointment Relocation for employees renting unfurnished property 3.3. prior to appointment. Non-Householders Doctors i n traini ng ORGANISATIONAL RESPONSI BILITIES Employee Recruiting Manager Finance TAX POSITION TIME LIMITS 13 APPENDIX 1 Application for Relocation Expenses 14 2 Application for Relocation Expenses for Doctors in Training NHS North Yorkshire & York Page 2 of 20

3 1. POLICY PREAMBLE This Policy is made between North Yorkshire and York Primary Care Trust (NYYPCT) and the recognised staff side organisations, using the mechanism of the Joint Negotiating and Consultative Committee (JNCC) and the Local Negotiating Committee (LNC). It will remain in force until superseded by a replacement Policy, or until terminated by either management or staff side, giving no less than six months notice. The purpose of the notice to terminate the Policy is to provide the opportunity to for both parties to renegotiate a replacement Policy. Withdrawal by one party, giving no less than six months notice, will not of itself invalidate the agreement. If agreement cannot be reached on a revised policy, then the matter will be dealt with through the PCT's Grievance Procedure. 1.1 Introduction This policy is applicable to newly appointed staff who are employed by the PCT where it has been agreed that relocation expenses will be payable to assist them to move to the relevant area. This policy may also be used to apply to those staff affected by organisational change and where payment of relocation expenses does not exceed the alternative redundancy package. The amount of expenses to be reimbursed in each case will be limited to a maximum of 8,000 and should be approved by the appointing manager in consultation with the appropriate Directorate Manager/Head of Service. All expenses above 8,000 should be approved by the Remuneration Committee. The expenses paid will be made up of one or a selection of the expenses described in section 3. There is no central budget for meeting relocation expenses. The cost of paying relocation expenses are to be met from Directorate delegated budgets. The Finance Department should be informed of all relocation expenses paid. Any points of interpretation of this policy should be referred to the Human Resources Department. 1.2 Scope Assistance is available to the following grades. However, expenses will only be paid where the Directorate Manager feels it is appropriate for the individual to move to take up appointment at North Yorkshire and York PCT. Directors 3 NHS North Yorkshire & York Page 3 of 20

4 Agenda for Change - Band 7 or above Consultants Senior Medical Posts (Staff Grade or Associate Specialist) Doctors in training (removal of personal effects only) In exceptional circumstances consideration may be given to offering relocation assistance to posts that do not meet the above criteria (e.g. hard to recruit posts). Approval to deviate from the criteria must be given by the Associate Director of Human Resources. Assistance for those staff affected by organisational change and where payment of relocation expenses does not exceed the alternative redundancy package or excess travel payments will be considered on request, regardless of role or grade. 1.3 Policy Statement Expenses will only be paid where the Directorate Manager/Head of Service feels it is appropriate for the individual to move to take up appointment at North Yorkshire and York PCT. It is not intended that reimbursement should cover 100% of costs, and employees are expected to bear some of the associated costs of removal. The overriding principle of this policy is to assist individuals to move to the relevant area and not about financial gain (e.g. individual renting out current property whilst it is for sale but still claiming rent allowance for temporary property in new location). 2. CONDITIONS OF ACCEPTANCE The offer of relocation expenses is conditional on the employee meeting and accepting the following terms. In exceptional circumstances consideration may be given to offering relocation assistance to posts that do not fully meet the below criteria. Approval to deviate from the criteria must be given by the Associate Director of Human Resources in conjunction with the responsible Executive Director. Original home is more than 50 miles away from their new work base. The exception to this rule is Consultants who are on a Category A on-call rota and are therefore required to reside within a distance of 30 minutes or 10 miles by road from their principal place of work unless the Medical Director agrees that they may reside at a greater distance. (* please refer to note at end of this section). Relocate to a house/flat that brings them significantly closer (within 20 miles) to their new work base. 4 NHS North Yorkshire & York Page 4 of 20

5 Move a distance of at least 20 miles Individual resides during the majority of the working week in the new property that they are claiming relocation expenses for Reimburse the relocation costs if they voluntarily leave the employment of the PCT or are dismissed for gross misconduct before completing three years service. Reimbursement will be on the basis of 1/36 th of the total relocation expense of each month between the date of leaving and three years following the date of appointment. All costs to be reimbursed if they leave with less than one year s service. Any monies owing to the PCT at the time of departure will be deducted from the final salary, and any remaining monies owed will be paid at an agreed rate/timescale Costs will only be paid against invoices unless otherwise stated. Individual is moving to the relevant area solely as a result of taking up employment with the PCT and they or their partner are not claiming funds from other employers to cover relocation costs. Please note that individuals who choose not to move to the relevant area and prefer to commute on a daily basis will not be entitled to any expenses under this policy. This policy is solely to assist individuals to move to the relevant area. * As per Inland Revenue s regulations, staff whose original home is less than 50 miles away are not entitled to tax relief on their relocation expenses. Therefore consultants who are on a Category A on-call rota and are required to move closer to the hospital to comply with their terms and conditions and do not comply with the 50 mile rule will receive the equivalent benefits after tax implications as other members of staff. 3 RELOCATION OPTIONS There are three different relocation options depending on whether the new employee: owns property prior to appointment rents property prior to appointment Non-householders 3.1 Relocation for Employee who Owns a Property Prior to Appointment 5 NHS North Yorkshire & York Page 5 of 20

6 The amount of expenses to be made available for individuals who come under this category will be limited to a maximum of 8,000.. Agreed expenses will fall into the following three categories. Employees may claim for any or all of the costs stipulated below, providing the total claim does not exceed the maximum amount agreed by the appointing manager. a) Selling: Estate Agents Fees Costs associated with producing a Home Information Pack Legal Fees Removal Fees including Storage & Packing b) Buying: Legal Fees including Stamp Duty Survey Fees Miscellaneous Expenses c) Expenses: Preliminary Visits Removal to New Home Temporary Rent Allowance Travelling Expenses Estate Agents Employees will be responsible for appointing their own estate agent. Home Information Pack The introduction of Energy Performance Certificates and Home Information Packs is to be phased, starting on 1 August Any costs for optional documents such as the Home Condition Report will be met by the employee. Legal Services Employees will be responsible for appointing their own solicitor. When submitting any documentation from solicitors (e.g. completion or financial statements) please ensure they are on the solicitor s headed paper. Removal Fees Employees must obtain quotations from three different removal firms and any reimbursement agreed will be based on the lowest of the three. Refer to Staff Benefits Directory for details of companies that give a discount to NHS staff. Storage charges for employee s 6 NHS North Yorkshire & York Page 6 of 20

7 household effects may be met where the employee has sold their property in the old area but is unable to move into their permanent accommodation in the new area. Storage charges, where paid, will usually be for a maximum of three months. Survey Fees Where survey fees are paid, this will be on the new property and will be limited to the cost of a Royal Institute of Chartered Surveyors house buyer s report, which must include the mortgage survey and should be arranged through the bank/building society providing the new mortgage. Any costs for additional reports recommended by the surveyor e.g. structural survey or damp report, will be met by the employee. Miscellaneous Expenses An agreed amount for miscellaneous expenses may be paid to staff. This is to contribute towards the costs such as the installation of telephones or other appliances, purchasing carpets and curtains etc. A guide figure property. would be a maximum of 1,000 for those purchasing a Preliminary Visits An amount up to 500 may be paid to the employee for accommodation costs plus travelling expenses for themselves and their immediate family to search for a new home any time after they have accepted the offer of employment. Expenses for preliminary visits will be reimbursed once the employee commences work with the PCT. Removal to New Home Travelling expenses may be paid on the removal day for the employee and their immediate family from the old home to the new home at second-class rail, or public transport rates. The employee can take one day s paid leave on the house moving date with the prior agreement of their line manager. This is an extra entitlement in addition to the agreed expenses package. Temporary Rent Allowance 7 NHS North Yorkshire & York Page 7 of 20

8 This may be paid to new members of staff who wish to relocate to the relevant area even if they have not yet been able to sell their property elsewhere. For the first year employees may claim 75% of the rental for a temporary home in the relevant area up to a maximum of 300 per month. For the second year the employee may claim 50% of the rental for a temporary home up to a maximum of 200 per month. This allowance is only payable if the employee is actively trying to sell their property elsewhere. Before this allowance can be claimed, the employee will be asked to provide a copy of the Estate Agent s details of their home, together with a letter from two agents confirming that the property is correctly priced for a sale given conditions in the local housing market. This allowance will only be paid whilst the employee is maintaining two homes. Payment cannot be claimed if an individual is renting out their current property whilst it is for sale. Travelling Expenses As an alternative to claiming Temporary Rent Allowance the employee may claim excess daily travelling expenses (that is over and above those which would normally be incurred from home to their previous place of work) from their old home to their place of work with the PCT, up to a maximum of 200 miles per working day at Public Transport Rate for a maximum of 6 months. Bridging Loan Interest on bridging loans is not normally granted as part of the relocation expenses package. In exceptional circumstances interest on a bridging loan may be allowed with the approval of the Associate Director of Human Resources. 3.2 Relocation for Employees Renting Unfurnished Property Prior to Appointment The package outlined below may be made available to newly appointed staff where it is necessary for the employee to move their home in order to take up appointment. One or more of the agreed expenses may be met, subject to an agreed maximum of 2,500. In contrast to section 3.1 of this policy, employees will not be entitled to any assistance towards the cost of purchasing a property. 8 NHS North Yorkshire & York Page 8 of 20

9 Employees that have not terminated their tenancy agreement and moved to the new area three months after their commencement with the PCT will be entirely responsible for meeting their own additional expenses except for removal fees and miscellaneous expenses grant. Range of applicable expenses: Preliminary Visits Miscellaneous Expenses Removal Fees Removal to New Home Expenses Excess Travel Temporary Rent Allowance Preliminary Visits An amount up to 500 may be paid to the employee for accommodation costs plus travelling expenses for themselves and their immediate family to search for a new home any time after they have accepted the offer of employment. Expenses for preliminary visits will be reimbursed once the employee commences work with the PCT. Miscellaneous Expenses An agreed amount for miscellaneous expenses may be paid to staff. This is to contribute towards the cost such as installation of telephones or other appliances, purchasing carpets and curtains etc. A guide figure would be a maximum of 500. Removal Fees Employees must obtain quotations from three different removal firms and any reimbursement agreed will be based on the lowest of the three. Refer to Staff Benefits Directory for details of companies that give a discount to NHS staff Removal to New Home Travelling expenses may be paid on the removal day for the employee and their immediate family from the old home to the new home at second-class rail, or public transport rates. 9 NHS North Yorkshire & York Page 9 of 20

10 The employee can take one day s paid leave on the house moving date with the prior agreement of their line manager. This is an extra entitlement in addition to the granted expenses package. Excess Travel Staff who opt to travel between the old and new place of work prior to relocating may be reimbursed excess mileage (that is over and above those which would normally be incurred from home to previous place of work) at Public Transport Rate for a maximum of three months. Temporary Rent Allowance There will be a 3 MONTH LIMIT for eligibility of these expenses if applicable, beginning on the date the employee moves into temporary accommodation in the new area or date of commencement of employment whichever is the earlier. Employees may be reimbursed 75% of the rental of their accommodation in the new area (up to a maximum of 300 per month), if they have given their landlord in the old area notice of their intention to leave the property and are waiting for the notice period to expire. Once the notice period has expired and the employee is released from the tenancy agreement on the old property then payment of rent for the new property will cease. 3.3 Non-Householders Non-householder is defined as someone who does not own a property (e.g. resides with parents) or is inhabiting furnished rented accommodation. The below may be available to newly appointed staff, subject to a maximum of 1,000. Removal Fees Non-householders can claim for removal fees subject to a maximum of 500. Employees must obtain quotations from three different removal firms and reimbursement will be based on the lowest of the three. Refer to Staff Benefits Directory for details of companies that give a discount to NHS staff Preliminary Visits An amount up to 500 may be paid to the employee for accommodation costs plus travelling expenses for themselves and 10 NHS North Yorkshire & York Page 10 of 20

11 their immediate family to search for a new home any time have accepted the offer of employment. after they Expenses for preliminary visits will be reimbursed once the employee commences work with the PCT. 3.4 Doctors in training (pending SHA policy) Doctors in training who are taking up appointment with North Yorkshire and York PCT may receive expenses for removal of personal belongings up to a maximum of 350. For small removals, reimbursement of a self-hire vehicle and fuel would be acceptable. Original receipts will be required as proof of outlay against authorised expenditure. Claims for reimbursement of removal expenses should be made within 12 months of starting with the PCT. The above also applies to doctors in training who are required to move house during a rotational training programme. Taxation rules apply to these expenses and it is the individuals responsibility to familiarise themselves with these rules. Doctors in training will be required to reimburse their relocation costs if they voluntarily leave the employment of the Trust before completing their fixed terms contract (up to a maximum of 12 months). Reimbursement will be on the basis of how many months are left in the contract (e.g. if the contract is 6 months reimbursement will be on the basis on 1/6 th of the total relocation expense for each month between the date of leaving and the end of the contract. Any monies owing to North Yorkshire and York PCT at the time of the departure will be deducted from the final salary, and any remaining monies owed will be paid at an agreed rate. 4 ORGANISATIONAL RESPONSIBILITIES 4.1 Employee Complete the application form and declaration honestly and accurately, understanding that failure to do so will result in an investigation, the outcome of which may be disciplinary action up to and including possible dismissal Provide all relevant information, original documentation and receipts relating to claims for relocation expenses 11 NHS North Yorkshire & York Page 11 of 20

12 Submit such information, documentation and receipts in a timely fashion and within pre-determined timescales Agree to the undertaking to remain employed within the PCT for two years Reimburse the PCT should they fail to adhere to the undertaking to remain employed for two years as outlined in the declaration 4.2 Recruiting Manager Check details of all applications for accuracy Discuss the declaration and undertaking to remain employed within the PCT for three years with the employee, including the consequences of failing to adhere to this undertaking Formulate a business case based on the employee s circumstances and their recommendations and submit this to the Associate Director of Human Resources for consideration 4.3 Finance Advise on Inland Revenue rules regarding acceptable/eligible expenses Process claims Keep a record of expenses claimed, ensuring claims paid to an individual employee do not exceed the agreed limit (maximum 8k) 5 TAX POSITION The policy provides a maximum amount claimable and is intended to cover costs actually incurred. The tax threshhold for relocation expenses is currently 8,000. Any expenses paid over and above the taxable limit would therefore be subject to tax and Class 1A National Insurance Contributions. In order to qualify for the exemption, the employee must change his/her sole or main residence for one of the following reasons: - Starting a new employment, or A change of the duties of his/her employment, or A change of the place where the duties are normally performed 12 NHS North Yorkshire & York Page 12 of 20

13 The new residence must be within reasonable daily travelling distance of the new normal place of work. The old residence must not be within reasonable daily travelling distance of the new normal place of work. Expenses must be vouched for and directly associated with relocation expenses: a. Sale of old home all expenses directly related to the sale of the old home including Solicitor s fees, costs of producing the compulsory elements of a Home Information Pack, Estate Agent s fees or Auctioneer s fees and advertising costs b. Purchase of new home all expenses directly related to the purchase of a new home including Solicitor s fees, Estate Agent s fees, Mortgage and Survey fees, Stamp Duty and public utility charges. c. Removal of furniture and fittings the actual costs associated with the removal and transportation of furniture and household effects from the old home to the new home location, including insurance of the items in transit. The PCT will either specify a particular removal company to be used or will reimburse the most competitive quote of three quotes obtained by the employee. d. Temporary storage the actual costs associated with the temporary storage of domestic belongings where there is not a direct move from the old to the new home. e. Travel/subsistence expenses relating to: preliminary visits to the new location travelling from the old home to the new work location travelling between the new home and the old work location (where the house move takes place before the job transfer) temporary living accommodation travelling between the old home and the temporary living accommodation travelling from the new home to the temporary living accommodation (where the house move takes place before the job transfer) travelling from the old home to the new home when the move takes place. f. Domestic goods for the new home - applies to domestic goods intended to replace items used at the old home that are not suitable for use in the new home (e.g. carpets and curtains that are the wrong size for the new home, o r an electric cooker bought to replace a gas cooker where there is no gas supply in the new home). g. Bridging loan interest (under certain circumstances). 13 NHS North Yorkshire & York Page 13 of 20

14 The PCT Finance Department has a full list of Inland Revenue acceptable expenses. If in doubt about whether a specific claim is eligible the employee should seek advice. 6 TIME LIMITS There is a time limit. The expenses must be incurred, or the benefits provided, within 12 months of starting with the PCT. Any extension would have to be agreed with the relevant Executive Director. 14 NHS North Yorkshire & York Page 14 of 20

15 APPENDIX 1 APPLICATION FOR RELOCATION EXPENSES To be completed and returned to Recruiting Manager *Delete as applicable Personal Details Full Name including Title: Details of Previous Appointment Post: Grade: Base: Salary: Last day of Service: Details of New Appointment Post: Grade: Base: Salary: Date Appointment Commences: *Whole Time/Part Time *Permanent/Temporary Old Address Was the accommodation rented or privately owned? If rented, hospital or private accommodation? Was accommodation furnished or unfurnished? New Accommodation *Permanent/Temporary? 15 NHS North Yorkshire & York Page 15 of 20

16 Rented or privately owned? If rented, hospital/private accommodation? Furnished or unfurnished? Declaration I hereby make application to the PCT for assistance with the relocation expenses actually and necessarily incurred by me in moving my home and in taking up the new appointment with the PCT, and in doing so I declare that the information given by me on this form is correct, and that neither I, nor my spouse/partner, have received or intend to claim for these expenses from any other service/employer. In addition, should this application be successful, I have noted that, as a condition of making payment of these relocation expenses, the PCT requires an undertaking that I will not leave the service of the PCT within a period of three years. Repayment of Relocation Expenses In the event of my not completing the minimum period of service referred to above, then the PCT will require me to repay 1/36 th of the total amount advanced in respect of each incomplete month within the three year period. If I leave before completion of one year s service then I understand that I will be responsible for repayment of all relocation expenses received. I understand that any monies owing to the PCT at the time of departure will be deducted from my final salary, and any remaining monies owed following this will be paid at an agreed rate/timescale. I understand that the claims made under this policy are subject to careful audit procedures and that any fraudulent claims will result in action being taken under the PCT s Disciplinary Procedure. Signed... Date... For completion by the Recruiting Manager I recommend the reimbursement of relocation expenses and confirm that I have informed the member of staff concerning the signing of the form and the implications relating to the declaration if the employee leaves the PCT within the three year period. Signed... Date NHS North Yorkshire & York Page 16 of 20

17 Recruiting Manager Please forward completed form with attached business case to the Associate Director of Human Resources APPENDIX 2 *Delete as applicable APPLICATION FOR RELOCATION EXPENSES FOR DOCTORS IN TRAINING To be completed and returned to the Medical Director/Associate Medical Director Personal Details Full Name including Title: Details of Previous Appointment Post: Current Address: Grade: Base: Last day of Service: Employing Trust: Contact Number: Details of New Appointment Post: New Address: Grade: Base: Date Appointment Commences: 17 NHS North Yorkshire & York Page 17 of 20

18 Date Appointment Ends (if fixed term): *Permanent/Fixed Term Contact Number: Declaration I hereby make application to North Yorkshire and York PCT for assistance with expenses for removal of personal belongings up to a maximum of 350 incurred by me in moving my home and in taking up the new appointment with the PCT. In doing so I declare that the information given by me on this form is correct, and that neither I, nor my spouse/partner, have received or intend to claim for these expenses from any other service/employer. In addition, should this application be successful, I have noted that, as a condition of making payment of these relocation expenses, the PCT requires an undertaking that I will not leave the service of the PCT before completing my fixed term contract (up to a maximum of 12 months). I can confirm I have moved a distance of at least 20 miles. Repayment of Relocation Expenses In the event of me not completing my fixed term contract (up to a maximum of 12 months) or I am dismissed for gross misconduct, I will be required to repay how many months are left in the contract (e.g. if the contract is 6 months reimbursement will be on the basis on 1/6 th of the total relocation expense for each month between the date of leaving and the end of the contract). I understand that any monies owing to the PCT at the time of departure will be deducted from my final salary, and any remaining monies owed following this will be paid at an agreed rate/timescale. I understand that the claims made under this policy are subject to careful audit procedures and that any fraudulent claims will result in action being taken under the PCT s Disciplinary Procedure. Amount Claimed: Signed... Date NHS North Yorkshire & York Page 18 of 20

19 For completion by the Medical Director/Associate Medical Director I authorise the reimbursement for removal of personal belongings up to a maximum of 350 and confirm that I have informed the member of staff concerning the signing of the form and the implications relating to the declaration if the employee leaves the PCT before completing their fixed term contract (up to a maximum of 12 months). Budget Code Print Name. Job Title. Budget Name. Signed Date Please forward the completed form once it has been signed by the Medical Director/Associate Medical Director and with the appropriate receipts to the Medical Staffing Department based at Sovereign House, Kettlestring Lane, Clifton Moor, York, Y030 4GQ. For official use only by the Medical Staffing Department Original paperwork given to the Finance Department to raise cheque Date. Initials. Photocopies filed in the personal file Date Initials. Confirmation sent to the doctor Date Initials.. Please reimburse a maximum of 350 as per relocation policy / Please reimburse.. as per relocation policy (please delete as appropriate). Signature Job Title: Date: NHS North Yorkshire & York Page 19 of 20

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