Unique Identifier: CORP/PROC/634 Title: Reimbursement of Relocation and Other Related Expenses. Version Number: 1 Status: Ratified Scope: Trust Wide

Transcription

1 Document Type: PROCEDURE Unique Identifier: CORP/PROC/634 Title: Reimbursement of Relocation and Other Version Number: 1 Status: Ratified Scope: Trust Wide Classification: Organisational Author/Originator and title: Responsibility: Sonya Clarkson, Head of Medical Workforce Human Resources Directorate Replaces: Description of amendments: New Procedure Name Of: Divisional/Directorate/Working Group: Workforce Sub Group Date of Meeting: 10/09/2013 Risk Assessment: Not Applicable Financial Implications Maximum allowance of 8,000 per eligible employee whose employment commenced after 1 st Validated by: Executive Directors meeting JLNC Ratified by: JNCC Trust Management Team Validation Date: 09/11/ /12/2013 Ratified Date: 17/12/ /03/2015 Review dates may alter if any significant changes are made January 2014 Which Principles of the NHS Constitution Apply? Principles 3 and 6 Issue Date: 26/03/2015 Review Date: 01/12/2017 Does this document meet the requirements of the Equality Act 2010 in relation to Race, Religion and Belief, Age, Disability, Gender, Sexual Orientation, Gender Identity, Pregnancy & Maternity, Marriage and Civil Partnership, Carers, Human Rights and Social Economic Deprivation discrimination? Initial Assessment

2 CONTENTS 1 PURPOSE SCOPE PROCEDURE Aims and Purpose Eligibility Allowances Advances Exclusions Requirement to Repay Expenses Exemption from tax and National Insurance Applying for Relocation Expenses Other related expenses Interview and other associated expenses Work Permit / Visas Appeals process Monitoring ATTACHMENTS ELECTRONIC AND MANUAL RECORDING OF INFORMATION LOCATIONS THIS DOCUMENT ISSUED TO OTHER RELEVANT/ASSOCIATED DOCUMENTS SUPPORTING REFERENCES/EVIDENCE BASED DOCUMENTS CONSULTATION WITH STAFF AND PATIENTS DEFINITIONS/GLOSSARY OF TERMS AUTHOR/DIVISIONAL/DIRECTORATE MANAGER APPROVAL... 9 Appendix 1: Application For Assistance With Relocation / Removal Expenses R1 Form.. 10 Appendix 2: Approval To Claim Relocation Expenses R Appendix 3: Relocation and Other Expenses Claim Form R Appendix 4: Application for Advance of Expenses A1 Form Appendix 5: Equality Impact Assessment Form Page 2 of 15

3 1 PURPOSE This procedure sets out an equitable process for dealing with requests for payment of relocation and related expenses for key employees on recruitment to the organisation. 2 SCOPE This procedure covers all permanent employees of the Blackpool Teaching Hospital NHS Foundation Trust or those employed on a fixed term contract of 2 years of more. Eligibility will be applied to posts banded Band 8 upwards and all consultant posts. Consideration may also be given to other senior doctor positions where it is a requirement to live in close proximity to the Trust, or where the Trust has recruitment needs for a high volume of a specific staff group or post (in lower pay bands) proving difficult to recruit to. The procedure excludes Bank or Temporary Staff. 3 PROCEDURE 3.1 Aims and Purpose will consider recompensing staff, at least in part, for the financial cost incurred by an individual required to relocate their permanent residence to within daily travelling distance of the Trust, as a result of taking up a post. This procedure describes the eligibility for assistance, details of the allowances which are covered and the procedure to follow for claiming relocation assistance. Provided individuals meet the criteria, actual relocation expenses will be judged on a case-by-case basis and each employee's situation and circumstances will be unique. The Trust therefore retains discretion to tailor the relocation package to suit the particular circumstances and needs of each employee. However, the Trust will always act fairly and in a non-discriminatory manner. Relocation assistance is discretionary; there is no automatic entitlement to relocation assistance from the Trust. It is not a contractual entitlement and the Trust reserves the right to withdraw the scheme at any time. The principal factors to be taken into account will be the reasonableness of the travelling and living distance of the employee and their appointed place of work. If staff, prior to their appointment with the Trust, already live within a 35 mile radius or 1 hour travel, they are unlikely to be eligible for any removal expenses. (Travel time of 1 hour is based on normal road/transport conditions and infrastructure, therefore, individual cases can be considered for reasonableness, where required). It must be stressed that the maximum amounts (ref. section 3.3 below) and the financial package appropriate to each eligible employee will be agreed by the Trust taking into account individual circumstances (ref. section 3.2 below), requirements Page 3 of 15

4 and what is considered reasonable by the Director of Human Resources and Organisational Development (HR&OD). Where an appointment is key to service delivery the Director of HR &OD has discretion to vary the limit beyond those set out in section 3.3. The employee is required to provide receipts / documents to cover all expenses claimed. (Mileage costs will be reimbursed at the public transport rate). Relocation expenses unclaimed 6 months after the move shall not be payable unless specific written confirmation from the Trust acknowledges unique circumstances. The payment of relocation assistance to Board Directors will be determined by the Remuneration Committee at the time of appointment, but would be expected to be in line with this policy. 3.2 Eligibility Newly appointed staff may apply to receive assistance where they meet the following criteria: The travelling distance from their existing home to the appointed place of work is considered unreasonable (as a guide, present home is more than 35 miles or 1 hour travelling distance from the Trust/their principle base, or for Consultant posts, where it is a contractual requirement to live within 10 miles of the Trust / principle base); Their new home ensures the travelling distance is reasonable to appointed place of work; It must be a reasonable expectation that the employee would have to move house in order to take up employment in their new post with the Trust, and ideally, a permanent move should take place within 12 months from the post holder commencing with the Trust. Given the current housing market, the Trust recognises that this time scale may need to be extended. Should this be the case, the member of staff receiving relocation allowances should submit a written request to their Head of Department and Director of HR&OD request an extension to the 12 month time limit, setting out clear reasons for the request. Any monies paid outside of the Revenue rules, however, are likely to be subject to tax and National Insurance (NI) by the Revenue, unless the tax office agrees to extend the time limit. Further information on the circumstances when the time limit may be extended can be found at the HMRC website. The Director of HR&OD retains the discretion to extend eligibility to other posts that may not meet the above criteria, but are seen as key to service delivery in the Trust. It is anticipated that any such exceptions will be minimal. Employees should not gain financially as a result of the relocation. If relocation allowance is approved, the Trust will also consider the differing personal circumstances to determine the amount of relocation allowance to be reimbursed, such as, the distance of the relocation and the specific scenario of the employee; Page 4 of 15

5 (i) (ii) Buying and selling property Expenses associated with the costs reasonably incurred by the employee in the selling and buying of property to relocate will be considered for reimbursement. Rented to rented accommodation - If the employee is living in rented accommodation and intends to live permanently in rented accommodation in the new work location, the relocation allowance will be more limited. If they are approved, the Trust will contribute to the reimbursement of costs reasonably incurred in moving from rented to rented accommodation. (iii) Rented to purchased accommodation - If the employee is living in rented accommodation but intends to purchase a property in the new work location, relocation allowance may be limited to a contribution towards the costs reasonably incurred in moving from the rented accommodation and no contribution will be made towards the purchase of the new property. (iv) Temporary accommodation - In circumstances where the employee has not been able to move to a new permanent property (whether purchased or rented) by the time of starting work in the new work location, the Trust will give consideration to the reimbursement of the costs of temporary hotel, bed and breakfast or rental accommodation. Temporary hotel or bed and breakfast accommodation will be allowed up to a maximum of 6 months. To extend beyond these limits, the employee must obtain prior agreement from his/her line manager. If an employee is renting out his/her existing property before or while trying to sell it, any rent received on the rented out property must be offset against the cost of temporary accommodation. The difference only will be covered by the relocation allowance. It is vital that the employee declares this income to the Trust. It may also need to be declared to HMRC, as failure to notify could result in significant financial penalties for the individual. 3.3 Allowances The maximum value of expenses to be reimbursed or benefits to be provided by the Trust, where property is owned, in individual cases is 8,000. Where the property is not owned (i.e. rented etc.) from which the applicant is intending to relocate, the maximum value of expenses to be reimbursed or benefits to be provided by the Trust, will be limited to the costs of removal expenses, costs of temporary accommodation (time limited) and any bond required to rent accommodation, relocation visits and the cost of reasonable sundry items. The maximum cost should not exceed 3,500. Only expenses which fall within the H M Revenue and Customs guidelines will be considered. Where an individual is unclear as to whether an item may be claimed, then guidance should be sought from the Director of HR&OD or nominee, prior to expenditure being committed to. Page 5 of 15

6 All items of actual expenditure, or benefits provided by the Trust will count against the approved total limit, subject to the production of original receipts. These are restricted to: Estate Agents fees or auctioneers fees for the sale of the old property, including VAT (these will not be reimbursed where the sale has been affected prior to the offer of employment). Solicitors' fees and other legal or search charges connected with the sale of the old property and the purchase of the new one, including VAT (these will not be reimbursed where house purchase/sale has been effected prior to the offer of employment). All mileage and subsistence reimbursements connected with the search for accommodation, return visits home, or other travelling costs incurred as a result of relocation. These should be claimed as per the Trusts claims for mileage using the online expense system. Temporary accommodation rental costs where two homes (one in the old area and a temporary one in the new area) are being maintained. Charges associated with the reconnection, establishment of utility services (Gas, Water, Electricity, and Telephone) Replacement carpets / curtains or other internal permanent fixtures or fittings required to be purchased or adapted. (This is only allowable where such purchases or adaptations are necessary because existing items cannot be used in the new home or are retained in the old home as a consequence of the sale). Removal of furniture and effects from old to new home, including any storage charges. Three written quotations are required for removal, and whilst the employee is free to choose any company, the Trust will only reimburse the lowest of the three quotes. Only expenses incurred in the tax year that the member of staff joins Blackpool Teaching Hospitals NHS Foundation Trust and the one following will be considered. The UK tax year is 6 April to 5 April. (For example, start date of new job 1 st March 2012, must use exemption by 5 th April 2013), in accordance with HMRC guidance. 3.4 Advances In exceptional circumstances, and in agreement with the Director of Finance, sympathetic consideration will be given to requests for advance payment to meet demonstrable cash flow problems. Advance payments will be restricted to the net payment (after allowing for tax deductions at the higher rate) for the minimum expenses figure i.e. 60% of 5,000 = 3,000. The advance will be agreed subject to receiving an undertaking from the employee Page 6 of 15

7 that receipts will be provided and that, should actual expenditure be less than that advanced, the Trust will recover any excess from salary, after giving notice. Form Appendix A1 should be completed for an advance. The amounts so advanced will be off-set against future receipted expenditure, and are only payable once employment with the Trust has begun. 3.5 Exclusions An employee will not be eligible to make a claim for assistance under the scheme if any other member of their household is claiming, or will be claiming, relocation expenses in connection with the move, either from Blackpool Teaching Hospitals NHS Foundation Trust or from any other source. 3.6 Requirement to Repay Expenses In the event that an employee on a permanent contract resigns or is dismissed from his/her employment within 2 years of taking up appointment, he/she will be required to repay on a pro-rata basis any relocation assistance received from the Trust. This amount will decrease by 1/24 for every month of service completed and the Trust reserves the right to deduct the outstanding sum on employee s last pay before leaving the Trust. Employees engaged on a fixed term appointment will be required to repay any relocation expenses on a pro rata basis, if they resign or are dismissed before completing full term of the contract. If expenses are incurred and the move of residence does not occur, the expenses will have to be recovered over the same period it was paid. 3.7 Exemption from tax and National Insurance HM Revenue and Customs allows tax and National Insurance exemption on relocation expenses within certain guidelines. Full information can be obtained from the HM Revenue and Customs Website. A summary of Revenue rules are provided below for general guidance, but as the revenue may alter these from time to time, employees are advised to check with the Revenue for the most up to date regulations. will not be responsible for any tax liabilities which may be incurred, these will be the responsibility of the individual. A member of staff s relocation allowance is exempt from tax (to a maximum of 8,000) and NI contributions as long as the following conditions are met: The member of staff has to move home to take up a new job The existing home is not within reasonable daily travelling distance The new home is within reasonable daily travelling distance Page 7 of 15

8 3.8 Applying for Relocation Expenses The following guidelines should be applied when making applications: Applications must be made on Form R1 - Application for Assistance with Relocation / Removal Expenses - all forms are available from the OneHR website (Appendix 1). Applications should be submitted to the Director of HR&OD at Blackpool Teaching Hospitals NHS Foundation Trust. Claims must be accompanied by receipts for payments made, in the name of the employee, which show the company number / VAT number. Such claims should give details of each item and the expenditure claimed. Claims cannot be made in advance of the date on which appointment is taken up, and no advances will be made. Separate forms should be used where different currencies are involved in the claim. No payments will be made for claims submitted after an individual has given notice of resignation. 3.9 Other related expenses Interview and other associated expenses For posts banded Band 8 upwards and all consultant posts, or where the Trust has a recruitment need for a high volume of a specific staff group proving difficult to recruit to, candidates are eligible to apply for expenses incurred as a result of attending interview. This may include, travel costs, at public transport rate, from the port of entry to the UK, and overnight accommodation, if accommodation is not available on the hospital site. Reimbursement for expenses should be agreed with the Appointing Manager in advance of the interview taking place Work Permit / Visas For posts meet the criteria for a Certificate of Sponsorship, the Trust will cover these costs. The employee will, however, meet the costs associated with issuing a visa Appeals process Appeals against decisions related to reimbursement of relocation and other related expenses will be handled using the Trust s Resolution procedure (ref: CORP/PROC/200) Monitoring A report will be provided on a 6 monthly basis to Joint Negotiating and Consultative Committee (JNCC) detailing the number of requests approved, which posts and the allowance paid. Page 8 of 15

9 4 ATTACHMENTS Appendix Number Title 1 Application for Assistance with Relocation / Removal Expenses R1 Form 2 Approval To Claim Relocation Expenses R2 3 Relocation and Other Expenses Claim Form R3 4 Application for Advance of Expenses A1 Form 5 Equality Impact Assessment Form 5 ELECTRONIC AND MANUAL RECORDING OF INFORMATION Electronic Database for Procedural Documents Held by Policy Co-ordinators/Archive Office 6 LOCATIONS THIS DOCUMENT ISSUED TO Copy No Location Date Issued 1 Intranet 26/03/ Wards, Departments and Service 26/03/ OTHER RELEVANT/ASSOCIATED DOCUMENTS Unique Identifier Title and web links from the document library CORP/PROC/200 Resolution Procedure doc 8 SUPPORTING REFERENCES/EVIDENCE BASED DOCUMENTS References In Full 9 CONSULTATION WITH STAFF AND PATIENTS Name Designation Sonya Clarkson Head of Medical Workforce 10 DEFINITIONS/GLOSSARY OF TERMS HMRC HM Revenue and Customs HR&OD Human Resources and Organisational Development JNCC Joint Negotiating and Consultative Committee NI National Insurance NHS National Health Service 11 AUTHOR/DIVISIONAL/DIRECTORATE MANAGER APPROVAL Issued By Sonya Clarkson Checked By Jacqui Bate Job Title Head of Medical Job Title Interim HR Director Workforce Date Date Page 9 of 15

10 Appendix 1: Application For Assistance With Relocation / Removal Expenses R1 Form APPLICATION FOR ASSISTANCE WITH RELOCATION / REMOVAL EXPENSES Name:...Post:... To be completed by the employee, either section 1 or 2 Section 1 (Please tick) I have been appointed to a post within BTHFT for which relocation expenses are payable, as agreed with the appointment process to the post, and; I have a property to sell in order to relocate to BTHFT, and; I wish to apply for assistance with relocation and other related expenses. Present Address: Proposed Address: (if known) Distance from present address to BTHFT (in miles).. Distance from proposed address to BTHFT (in miles).. (Estate Agents details in respect of both properties must be attached for full relocation claims) Section 2 (Please tick) I have been appointed to a post within BTHFT for which relocation expenses are payable, as agreed within the appointment process to the post, and; I have no property to sell, and; I wish to apply for assistance with removal expenses only. For all claims: In consideration of my being reimbursed my relocation expenses / excess travelling expenses in accordance with 's relocation procedure, I hereby undertake that I will not voluntarily leave the service of within a period of two years from the date of commencement in post, as below. I agree that if I break this undertaking, I will repay a proportion of the expenses received based on the ratio of months of service not completed to the total number of months service required by this undertaking [i.e.24 months]. I certify that: a) The information given is true and accurate. b) Payment of expenses is not available or payable in full or part from any other source. c) I know of no circumstances which would prevent me relocating and I undertake to inform Blackpool Teaching Hospitals NHS Foundation Trust should such circumstances arise. d) I will inform immediately if I decide for whatever reason not to relocate. Date employment commences. Signature of Employee... Date... Page 10 of 15

11 Appendix 2: Approval To Claim Relocation Expenses R2 APPROVAL TO CLAIM RELOCATION EXPENSES To be completed by an authorised Human Resources Representative 1. Relocation and Other Expenses Claim A) APPROVED Arrangements are within parameters of time and distance set out in the procedure. Post is identified as eligible for relocation. Appointing manager has confirmed that agreement was reached at interview. Amount approved to claim. B) NOT APPROVED Arrangements do not comply with the time/distance requirements set out in the procedure and expenses in respect of the proposed move are not payable. C) LIMITED APPROVAL The arrangement complies with the time/distance requirements of the policy but there appears to be a demonstrable improvement in the standard of accommodation to be purchased. Therefore an independent valuer will be asked to provide a notional assessment which will be treated as the notional purchase price for reimbursement of purchase legal expenses, stamp duty and other related costs. * Tick A, B or C HR Representative s Name:... HR Representative s Job Title:... HR Representative s Signature:... Date A copy of this form will be returned to the employee by the HR Advisor to submit with their final receipted claim. The original will be retained on the employee s file. Page 11 of 15

12 Appendix 3: Relocation and Other Expenses Claim Form R3 RELOCATION & OTHER EXPENSES CLAIM FORM (Multiple copies may be made, submitted as necessary along with copy of authorised Form R2) Claimant Name:... Post:... Signed:... Date... p Removal of Furniture (lowest of 3 quotes) Storage Charges (if appropriate) Costs of Sale of Property (Sale Price...) Solicitors Fees Estate Agents Fees Costs of Purchase of Property (Purchase Price...) Solicitors Fees Stamp Duty Land Registration Fee Survey Fee Search Fee/s Utilities Fee/s Temporary Rental Property Costs (if appropriate). Others (please specify) All claims made must be supported by receipted accounts before reimbursement can be made. Totals Checked by:... (HR Nominee) Date... Authorised by (Director of HR & OD/Nominee) Date... Page 12 of 15

13 Appendix 4: Application for Advance of Expenses A1 Form APPLICATION FOR ADVANCE OF EXPENSES To be completed by the employee and approved by the Director of Finance Name:... Post:... I have commenced employment and wish to apply for an advance of expenses to cover imminent costs. I understand that: The maximum amount that will be advanced is 3,000. The advance will be off-set against future receipted expenditure. Any sum advanced, or part thereof which is not required or utilised will be repaid to Blackpool Teaching Hospital NHS Foundation Trust. The Trust may recover any excess from salary, after giving notice. Amount of Advance required... Signed... Date... Approved... Date... (Director of Finance) On completion of the approval process a copy of this form will be sent to the Head of Payroll and a copy given to the employee. Page 13 of 15

14 Appendix 5: Equality Impact Assessment Form Please make sure this is the last appendix in your document Department HR & OD Service or Policy Policy Date Completed: GROUPS TO BE CONSIDERED Deprived communities, homeless, substance misusers, people who have a disability, learning disability, older people, children and families, young people, Lesbian Gay Bi-sexual or Transgender, minority ethnic communities, Gypsy/Roma/Travellers, women/men, parents, carers, staff, wider community, offenders. EQUALITY PROTECTED CHARACTERISTICS TO BE CONSIDERED Age, gender, disability, race, sexual orientation, gender identity (or reassignment), religion and belief, carers, Human Rights and social economic / deprivation. QUESTION RESPONSE IMPACT Issue Action Positive Negative What is the service, leaflet or policy development? What are its aims, who are the target audience? Does the service, leaflet or policy/ development impact on community safety Crime Community cohesion Is there any evidence that groups who should benefit do not? i.e. equal opportunity monitoring of service users and/or staff. If none/insufficient local or national data available consider what information you need. Does the service, leaflet or development/ policy have a negative impact on any geographical or sub group of the population? How does the service, leaflet or policy/ development promote equality and diversity? Does the service, leaflet or policy/ development explicitly include a commitment to equality and diversity and meeting needs? How does it demonstrate its impact? Does the Organisation or service workforce reflect the local population? Do we employ people from disadvantaged groups Will the service, leaflet or policy/ development i. Improve economic social conditions in deprived areas ii. Use brown field sites iii. Improve public spaces including creation of green spaces? Does the service, leaflet or policy/ development promote equity of lifelong learning? Does the service, leaflet or policy/ development encourage healthy lifestyles and reduce risks to health? Does the service, leaflet or policy/ development impact on transport? What are the implications of this? Does the service, leaflet or policy/development impact on housing, housing needs, homelessness, or a person s ability to remain at home? Are there any groups for whom this policy/ service/leaflet would have an impact? Is it an adverse/negative impact? Does it or could it (or is the perception that it could exclude disadvantaged or marginalised groups? Aimed to attract applicants to work for the Trust, specifically in roles that are difficult to recruit to, who currently either live in the UK or overseas Yes there is a commitment to equality and diversity and meeting needs It will help in attracting individuals to live and work in the Blackpool areas It supports people to find accommodation and housing near to where they intend to work Page 14 of 15 Ensure the criteria for establishing difficult to recruit to posts is clear to all and relocation support is agreed at interview Clear criteria for eligibility Positive

15 Appendix 5: Equality Impact Assessment Form Please make sure this is the last appendix in your document Does the policy/development promote access to services and facilities for any group in particular? Does the service, leaflet or policy/development impact on the environment During development At implementation? ACTION: Please identify if you are now required to carry out a Full Equality Analysis Name of Author: Signature of Author: Sonya Clarkson S Clarkson Yes No (Please delete as appropriate) Date Signed: Name of Lead Person: Signature of Lead Person: Name of Manager: Signature of Manager Sonya Clarkson S Clarkson Jacqui Bate J Bate Date Signed: Date Signed: Page 15 of 15