This type of relocation package is when a company gives a transferee a fixed amount of money to help with moving expenses. The transferee is responsible for using that money to purchase a moving service, transportation and any other expenses that may be necessary. However, the assignee has to decide what is the best use of the amount of money he receives. Companies always use their lawyers to add policies with protections in case you find yourself in problematic situations, so be sure to consider a few things in the fine print before finally accepting a relocation package.
An employee relocation package is a benefit that companies use to help new and current employees move from one location to another because work requires it. Relocation packages may vary depending on your experience, the size of the company you will be working for, and your living situation. This type of relocation package specifically refers to employees moving to company locations in different countries. If a relocation company is used to purchase the home through a GBO and a third party buyer offers a higher price, a modified value option (AVO) can be used.
Employers have lost the ability to use relocation as a tax deductible and employees have to pay taxes on any relocation benefits received. Now that you have an overview of what a relocation package should include and what a reasonable relocation package should look like, it's time to get down to business and create that perfect package. Often, the employee will keep relocation costs low and the rest of the pay will be pocketed; this can lead to a bad move and many companies are moving away from these packages. Reimbursement relocation packages allow transferees to pay all moving expenses with the idea that their employer will reimburse them a specific amount of money after the relocation.
The relocation company will match this offer and then sell the home to the outside buyer, provided that the highest bid is a bona fide offer made in good faith. Although most companies have a mostly resolved relocation package by the time they offer a job, employees may have individual needs or requests to make the move as simple as possible. To cover their bases, companies should consider adding a reimbursement clause, which states that if the relocated employee leaves before a set period of time, he will have to reimburse the company's relocation costs. If it's not as high as you want it to be, the company may be able to compensate you in your relocation package if you don't ask for a higher salary.
Another important component that can be included in a relocation package is a paid moving company to help transport your belongings and adequate insurance coverage to cover the cost of any of your personal items that may be damaged during the moving process. Believe it or not, but most companies will also add fantastic benefits like temporary housing, relocation bonds, and even loss-on-sale protection if you plan to sell your home. Together, we'll discuss what a relocation package should include and how to create an employee relocation package that guarantees you stress-free success.