As more and more companies become global in reach, it`s common for employees to be asked to relocate. When an employee agrees to move for a job, the company may offer an employment agreement relocation package to help ease the financial burden of the move. In this article, we`ll dive into what employment agreement relocation expenses are, what they cover, and how they work.
What are employment agreement relocation expenses?
Employment agreement relocation expenses refer to the costs associated with an employee moving to a new location at the request of their employer. These expenses are usually outlined in an employment agreement or a relocation package that an employer may offer to a new or existing employee.
What expenses does a typical relocation package cover?
The expenses covered in a relocation package will vary depending on the company and the specific details of the employee`s move. However, common expenses that may be covered in a relocation package include:
1. Moving costs: This includes packing, shipping, and unpacking of the employee`s belongings.
2. Temporary housing: If the employee needs to stay in temporary housing before finding a permanent home, the employer may cover the costs.
3. Travel expenses: This includes costs associated with traveling to the new location, such as airfare, gas, and tolls.
4. Shipping a car: If the employee needs to ship their car to the new location, the employer may cover the cost.
5. Storage: If the employee needs to store their belongings temporarily, the employer may cover the costs.
6. Home sale and purchase: If the employee needs to sell their current home or purchase a new one, the employer may cover some of the associated costs.
How does a relocation package work?
When an employee receives a relocation package, they typically have a set amount of time to use the benefits provided. For example, if the package includes temporary housing, the employee may have a set number of weeks to find a permanent home and move in. Employees will need to keep proof of expenses and may need to submit receipts for reimbursement. Any expenses that are not covered by the relocation package will be the responsibility of the employee.
It`s important to note that all employment agreement relocation expenses should be agreed upon and outlined in writing before the employee makes their move. This ensures that both the employer and employee are on the same page regarding what is covered and what is not.
In conclusion, employment agreement relocation expenses are a common aspect of modern employment, particularly for international companies. Relocation packages help to make the transition to a new location easier for employees by covering some of the associated expenses. It`s important for both employers and employees to be clear on what expenses are covered in the relocation package before making the move.