Sample Employee Relocation Agreement

There are risks associated with offshoring. An employee`s willingness to relocate does not mean that the employee has a high degree of commitment to the organization. Employers know that employee engagement rates decrease after relocation. Employees who adapt well find themselves on new sites with new opportunities that they can take away from the employer. Employees with poor relocations, conflicting with their new bosses or conflicting with their new sites may ultimately leave the jobs they have held. Employers often outsource offshoring because they can rebalance their relocation programs, improve services or reduce costs by reducing the number of internal ladders. Although hundreds of companies offer services, choosing the right provider can be difficult and depends on the specific requirements of the organization. Employers should first understand their own offshoring objectives. Proper planning and preparation.

B – like building an internal team with staff, finance, recruitment and acquisition – facilitates the process of selecting employers. See SHRM`s guide to relocation systems and Go Digital relocation management providers. Companies invest heavily in offshoring and often lose those investments when employees leave shortly after moving. An increasing number of employers include a depreciation clause in relocation agreements to recover these costs. Under a depreciation clause, a relocated employee agrees to reimburse the organization for all or part of the employer`s transfer fee if the employee leaves the organization within a specified period of time, usually from one year to 18 months. Areas with high fluctuation rates tend to use these clauses more often. Some employers choose not to include depreciation clauses because they are concerned that the clauses may be an incentive to move. Employers must confirm that national legislation authorizes reimbursement clauses before implementing this practice. See the moving and moving agreement. Offshoring entails costs, productivity loads and stress for both the move and the employer. There is always room to improve processes, streamline them and make a better choice of suppliers.

Companies should ask employees about the performance of their remote management and other moving service providers to help them choose effective suppliers in the future. Surveys help determine whether the service provider has delivered its promised results. Employers can reimburse expenses such as hunting at home. B, the temporary cost of living and the transportation of household goods. Some organizations waive reimbursement and instead make available lump sums paid in advance to relocate staff to cover all expenses. Employees keep anything that might remain or pay expenses that the lump sum does not cover. Lump sums mean that human resources are not obligated to negotiate expenses or keep detailed records of each employee`s receipt. To make decisions, HR must also consider the real estate market on a regional basis. Because markets vary from sector to sector, HR may be forced to develop different offshoring strategies for each region.

See Housing Crunch increases the role of HR and improving the housing market calls for greater flexibility in relocation programs. Taxation can be a complex issue when offshoring staff. Tax considerations for temporary travel of less than 12 months differ from tax issues related to permanent relocations. Taxes vary from state to state and can be complicated by other factors, such as the sale of homes.B. Appropriate experts should review tax and legal issues to ensure that policies and practices are consistent with the employer`s legal obligations. After December 31, 2017, the Tax Cuts and Jobs Act Suspends in Faith