Managing Employee International Relocation at Germany Manpower | Germany Manpower Germany

Overview

In employee relocation, we move employees from one location to another. We outline the basics of our effective relocation programs, including policy development, communication issues, legal issues and economic factors. It covers elements of our employer relocation program such as relocation agreements, moving expenses, support for families, and housing and real estate issues. We also explain how we outsource the relocation program and how we select a vendor.

Background

Attracting and retaining talent is the number one concern facing our organizations. To attract and keep talented employees, human resource ensures we have competitive relocation packages and effective relocation practices and policies. Relocation assistance help us lure new hires; retain current employees by giving them career development opportunities, and advance business development and operations by ensuring the right talent is in the right place at the right time. A well-designed relocation program complements our talent management program.

Moving for work is a common occurrence in globally – every year millions of people relocate for a new job, get transferred across the country, accept long-term assignments in different locations, etc.

Moving for a job is common.
Following your career path may take you to another city or state.

Moving to a new place, however, is quite a difficult, stressful, and expensive process. So, to provide an incentive for employees to accept new positions and job transfers and help ease their minds, we offer relocation assistance – relocation packages that relieve employees and their families of the financial burden of moving.

There are several types of relocation packages and different companies provide different kinds of relocation assistance, so if you’re moving for a job, you need to do some research – find out what is included in a standard relocation package, what relocation benefits your company typically offers, and how to negotiate a better deal.

You can find everything you need to know about relocation packages in the comprehensive guide below:

What Does a Relocation Package Cover?

Essentially, a relocation package is a form of financial assistance provided by a company to a new hire from out of the area or to an existing employee who is being transferred to another city or state. Generous relocation packages help companies attract top-notch specialists from across the country and ensure successful transfers, so many reputable corporations offer comprehensive relocation assistance in order to stay competitive in the job market.

So, what does a typical relocation package include?

  • Home hunting – The company will pay for one or two trips to the new location (including transportation, lodging, and meals) to give the employee the opportunity to find an appropriate new home in the area;
  • Home selling and home buying assistance – Standard relocation packages cover closing costs, real estate commissions, and other expenses normally incurred when selling and buying a house. Depending on the company, employees can get professional marketing help to accelerate the sales process and/or reimbursement for money lost on quick home sales. Renters who need to break their lease can expect their employers to pay any resulting penalties. Transferees also get help buying a home (or renting a property) close to the new workplace – the company will pay the closing costs and various fees on the purchase of the property (or the security deposit for the rental) and may even buy down the interest rate on the mortgage;
  • Moving costs – Most companies will pay for full service movers who will take care of the relocation from start to finish, so the employee is not stressed and tired by the moving process and can begin work with enthusiasm and efficiency. The provided relocation package will cover the expenses for professional packing and unpacking, loading and unloading, transportation of household goods, and adequate insurance. Even specialized moving services (moving of specialty items, exclusive use of moving vehicle, etc.) and short-term storage may be included;

    Find out what is included in an average relocation package.
    A good relocation package will cover all moving-related expenses.
  • Travel expenses – The company will reimburse travel expenses for employees and their families – plane, bus, or train tickets and the cost of shipping the transferee’s vehicle(s) to the new area or fuel expenses and meals and lodgings on the way;
  • Temporary housing – Standard relocation packages include temporary housing for at least 30 days after the move. It may be possible, however, to negotiate a relocation package that covers the costs of temporary accommodations for a period of 2-3 months – or even for however long it takes the employee to find a permanent residence in the new area and get it ready to move in;
  • Assistance in finding employment – If the employee’s spouse/partner needs to leave their job because of the relocation, the company may give them recommendations or employment leads to help them find an appropriate new job in the new city;
  • Miscellaneous expenses – Various smaller moving-related expenses, such as connection of services, hiring professional cleaning services, updating licenses and registrations, etc., will also be reimbursed by the company.

Childcare assistance, assistance with finding suitable schools for school-age children, and other special benefits may also be included in a good relocation package.

Relocation packages provide incentives for current and prospective employees to pursue careers within a company – they make moving easier and more affordable for the transferees and allow companies to attract and keep top talent. It is a win-win for all.

Beyond cost of moving: what should be covered by the allowance?

In either scenario, expats need to know what they need to cover, so we have put together a short list. Whether managed by the expat themselves or by a relocation partner working on their behalf, these are the items that relocation packages should provide for:

  • Moving costs: the bulk of the expense of moving involves transporting household goods to the new host country, including packing and unpacking, as well as the management of the shipping process. If arranged through an experienced relocation partner, a single, fixed fee is paid to cover all services. This should include insurance and advisory services – which in turn help to avoid other unforeseen costs.
  • Travel: airfare for all members of the family. This will usually cover a reasonable amount of trips back home, especially at holiday times.
  • Orientation trip: some expats visit the new host country in advance, typically to investigate accommodation options and to familiarize themselves with the area. These costs typically include air fares, hotels, meals etc.
  • Storage: it may not be possible to coordinate the arrival of the expat with the arrival of their goods. In such cases, temporary household goods storage should be covered.
  • Accommodation costs: While the overall compensation package is calculated to cover cost of housing, there are also one-off costs associated with selecting a place to live. Help with other details such as signing a lease and inspecting a home may also be provided. If accommodation is not agreed before departure date, temporary accommodation should also be covered. These costs may also cover services such as cleaning, electrical, heating, telephone and broadband set-up.
  • Home sale/lease break costs: Relocation allowances may cover the cost of arranging for the rental or sale of the expat’s property in the home country, or cover the costs of terminating a lease.  Equally, this may also include the cost of tasks such as cleaning and the termination of services and subscriptions (broadband, phone etc).
  • Medical costs: Vaccinations and any other medical arrangements should be included in negotiations.
  • Documentation: Typically, the company will arrange for necessary visas, work permits and other paperwork related to the move. If not, any costs arising from this should be covered by the relocation allowance.
  • Pets: if family pets are also moving, additional costs may arise, potentially including paperwork.
  • Spouse support: if the expat’s spouse or partner requires assistance in finding work or establishing their own business, this may require financial support which could be covered in the allowance.
  • Cultural support: relocation allowance can also include ‘cultural training’ – which could range from one-off classes on what to expect in the new destination to ongoing language tuition.
  • Repatriation: The return journey will also need to be covered. Clarify whether this is part of a single allowance or if there is a separate agreement in place to cover cost of the elements above when repatriating.

How Do Relocation Packages Work?

A typical relocation package covers the costs of moving but there are different kinds of relocation benefits and different companies have different relocation assistance policies.

Relocation Package Options

There exist four main types of relocation packages:

  • Lump sum – A set amount of money is given directly to the employee to pay for moving-related expenses. The transferee decides how to organize their relocation and what to spend the money for, but they cannot get any more relocation assistance from the company. The relocation package amount is negotiated before the move, so it may sometimes not be enough to cover all relocation-related expenses. (It is difficult to correctly estimate the final moving costs in advance – the mover’s initial estimate may be lower than the actual costs, there may be emergency expenses during the moving process, etc.) In such a case, the employee will have to cover the difference out of their own pocket;
  • Reimbursement – The employee pays for everything themselves and gets reimbursed by the company after the move. All receipts for moving-related expenses must be saved and provided as proof. Usually, the company sets a cap on the amount it will reimburse – any expenses that go over that limit are paid by the employee;
  • Direct billing -The company hires professional movers to relocate the employee and pays them directly. This may be combined with reimbursements for other relocation-related expenses, such as travel costs, costs of temporary housing, home sale marketing, etc.;
  • Third-party relocation – The company outsources all moving logistics and coordination, real estate dealings and consultations, etc. to a third party (usually, a broker) that manages the whole process – sale of existing property, moving and storage services, spousal employment assistance, arranging temporary accommodations, etc.

The type of relocation assistance offered to an employee and the relocation package amount can vary considerably depending on the company’s financial resources and current situation; how often they relocate their stuff; how valuable the employee is to the company; whether the transferee is a homeowner or a renter; whether they’re moving alone or together with their family, and other relevant factors.

Are Relocation Packages Taxable?

When it comes to taxes, lump sums are considered as income, so they’re fully taxable. To compensate for the taxes, many companies offer a larger gross amount so that the net benefit (after taxes) is equal to the expenses incurred during the moving process.

The employee doesn’t need to pay taxes on payments made directly by the company to movers, brokers, etc. (in the event of direct billing and third-party relocations).

Good to know: Moving costs and travel expenses may be tax-deductible if they meet the applicable IRS conditions, so all relocation-related receipts should be saved and submitted with expense reports.

What to Expect with a Relocation Package?

If you’re moving for a job and your company offers you a relocation package, be sure to double-check its specifics before making arrangements to move – you need to know exactly what will be covered or reimbursed, so you can plan accordingly and decide how to organize your relocation, what to take to your new home and what to get rid of before the move, how to travel to your new area, etc.

Find out what’s considered an approved expense and what’s not (there may be certain things that the company won’t cover, even if they don’t go over the reimbursement limit), when the company will actually give you the money, if there are any special payback clauses (you may be required to pay back the money you received for your relocation if you quit your job within a year after the move, for example), etc.

Make sure you’re well familiar with the company’s relocation assistance policy and attempt to haggle for any required/desirable extra services when negotiating your relocation package, so you don’t end up paying out of your pocket.

Also, keep in mind you may have little choice concerning moving companies and real estate agents when your employer is paying for the relocation – many companies will reimburse you for your moving-related expenses only if you use the services of the movers and brokers they specify.

What’s more, the process of selling your old home and buying a new one will be more complicated, as you will have to negotiate the details of your sale and your purchase with both your employer (or the third party they’ve outsourced your relocation to) and the potential buyer/seller.

All in all, there will be more paperwork to deal with and more conditions to observe when relocation packages are involved.

How to Negotiate a Relocation Package

As already mentioned, relocation packages are used both as a recruiting tool to attract the best candidates for a job and as a way to keep current employees happy in the event of a transfer. So, while companies want to pay as little as possible for relocation costs, they’re willing to negotiate in order to employ top talents and ensure successful transfers.

Therefore, when moving for a job and negotiating a relocation package, you can get a really good deal and ensure your successful relocation experience – if you know what to ask for and how to make your case.

  • Know your company’s relocation assistance policy – Find out what your company typically offers, what is and isn’t included in their standard relocation package, what could be negotiable, etc.;
  • Know what to ask for – Determine what kind of assistance you’re going to need (childcare, spousal job support, furniture allowance, etc.), estimate your moving expenses (assess your specific relocation needs and get an accurate estimate of your moving costs), and research your new area (analyze the real estate market and housing costs in the region, find out the cost of living in your new city, look at taxes in your new location, etc.), so you can suggest what services should be included in your relocation package and can back up your requests with cost examples;
  • Make your case – Discuss your needs and preferences with your employer, be rational and concise, provide exact numbers, and explain why getting what you want will benefit the company as well – if your relocation is smooth and stress-free, you’ll be able to hit the ground running in your new job;
  • Ask the company to match the competition – If you have another job offer that includes a better relocation package, mention it to the company you want to work for – if they see you as a valuable asset, they’ll offer more relocation benefits to beat the competition;
  • Get it all in writing – Once you come to an agreement with the company, make sure you get it in writing. The negotiated details, time-frames, amounts, and special conditions may be written directly in your employment contract or simply stated in a signed letter – what matters is to have it all in black and white in order to avoid potential conflicts and misunderstandings.

Smart negotiation will get you proper relocation assistance and make your move as affordable and stress-free as possible. You’ll be able to pursue your career path with confidence and passion and will begin a happy new chapter in your life. Good luck!

Business Case

Our best resources—and its largest costs—are the people who bring creativity, productivity and ultimately profitability to us. The good talent management program improves our competitiveness, but it does not ensure that the talent is located where it is most needed. We might want new hires and current employees to relocate for continued career development or to bring their knowledge to different subsidiaries or locations. These moves can be a daunting task for us and a high-stress situation for the employee. If relocation is not handled successfully, it threatens our ability to retain the employee—and it risks losing someone we has devoted time and money to develop and move.

Relocation is fraught with risk. An employee's willingness to relocate does not mean the employee has a high level of commitment to the organization. We know that employee retention rates drop after relocation. Employees who adapt well find themselves in new locations with new opportunities that can draw them away from us. Employees whose moves go badly, or who conflict with their new bosses or clash with their new locations, can end up leaving the jobs they moved to take.

  • Employee Commitment
  • The difference between employe engagement and commitment. Engagement is an intrinsic attitude that denotes an employee’s enthusiasm for his or her job. Commitment, on the other hand, denotes an employee’s enthusiasm for the company he or she works for.

    In short:

    • Engaged employees are engaged in their work, but not committed to the organisation.
    • Committed employees are committed to the organisation, but not engaged in their work.

    Types of Employee Commitment 

    The description above is a very good indicator of employee commitment, but does only offer a broad description. In their article “Three component model of commitment” John Meyer and Natalie Allen8 discuss commitment in great detail. We can see from their insightful research that  there exists three distinct types of employee commitment:

  • 1) Affective commitment
  • Affective commitment relates to how much employees want to stay at their organisation. If an employee is affectively committed to their organisation, it means that they want to stay at their organisation. They typically identify with the organisational goals, feel that they fit into the organisation and are satisfied with their work. Employees who are affectively committed feel valued, act as ambassadors for their organisation and are generally great assets for organisations.

  • 2) Normative commitment
  • Normative commitment relates to how much employees feel they should stay at their organisation. Employees that are normatively committed generally feel that they should stay at their organisations.  Normatively committed employees feel that leaving their organisation would have disastrous consequences, and feel a sense of guilt about the possibility of leaving.

    Reasons for such guilt vary, but are often concerned with employees feeling that in leaving the organisation they would create a void in knowledge/skills, which would subsequently increase the pressure on their colleagues. Such feelings can, and do, negatively influence the performance of employees working in organisations.

  • 3) Continuance commitment
  • "Do not hire a man who does your work for money, but him who does it for the love of it"

    Continuance commitment relates to how much employees feel the need to stay at their organisation. In employees that are continuance committed, the underlying reason for their commitment lies in their need to stay with the organisation. Possible reasons for needing to stay with organisations vary, but the main reasons relate to a lack of work alternatives, and remuneration.

    A good example of continuance commitment is when employees feel the need to stay with their organisation because their salary and fringe benefits won’t improve if they move to another organisation. Such examples can become an issue for organisations as employees that are continuance committed may become dissatisfied (and disengaged) with their work and yet, are unwilling to leave the organisation.

    Resolving Employee Absenteeism

    Absenteeism is an employee’s intentional or habitual absence from work. While it’s normal for employees to miss a number of days of work per year, being absent too often can mean decreased productivity and extra costs.

    Causes of absenteeism and what the implications are for a company and how to reduce absenteeism in the workplace.

    • The causes
    • Many factors can contribute to absenteeism, but the main causes are:

      • Stress and depression: Stressful work environments, heavy workloads, depression, and mental illness account for the most work days lost in the Germany, over 70 million per year and higher absenteeism than back pain in Canada.
      • Childcare and eldercare: In the case of an emergency (a child or elder gets sick), or if plans happen to change unpredictably (a caregiver isn’t available, or a snow day at school), employees might be forced to miss work.
      • Illness and injury: Illness, injuries, and medical appointments are some of the most common reasons stated by employees for missing work.
    • Implications:
    • Absenteeism has a high price tag, representing the combined cost of wages paid to absent employees, finding replacement workers, administrative costs of managing absenteeism, reduced productivity, and reduced quality in goods and services. To put it in numbers, the total cost of absenteeism across multiple professional disciplines accounts for about 2.5% of Europe’s GDP.

    • Solutions
    • Absenteeism is a difficult problem to tackle. However, employers have found that putting an emphasis on employee wellbeing seems to produce positive results. Making the move toward mandatory sick leave is a good example of this. While it might seem counter-intuitive, this allows employees to recover sooner therefore stopping the spread of communicable diseases and resulting in less absenteeism in the long run.

      Another solution is having a flexible work environment. A Swedish study introduced “adjustment latitude”, which allows employees to adjust their work according to their illness so as to maintain a sufficient capacity to work while maintaining a level of productivity. Having this option resulted in fewer cases of absenteeism.

      Company childcare can also be very effective in saving lost work days, as last minute changes can happen to school or childcare arrangements.

      Ultimately, employees want to feel safe and cared for by their company, which is why employee assistance and employee wellbeing programmes seem to be more effective. Examples are offering health risk assessments (HRAs), counselling for mental health issues, and health programmes such as weight management and smoking cessation. This helps boost employee morale, which in turn increases commitment to the company, and consequently increases productivity.

       

    HR's Role

    Our Human resources departments frequently manage our employee relocation programs. Relocation is no longer a matter of human resources or hiring manager approving moving expenses. Relocation now requires a strategic focus on our business and finances to ensure that the relocation program advances our strategy. The HR work with other parts of our organization to ensure relocations is managed consistently.

    The business of relocating our employees requires human resources or relocation/mobility managers to do the following:

    • Set and manage policies by working directly with internal business partners and chief operating officers.
    • Identify employees best suited for mobility opportunities by working with talent officers and managers.
    • Select and manage a portfolio of vendors and external service providers by working with procurement or financial officers.
    • Identify and mitigate legal issues, such as tax or immigration questions, by working with the legal department.

    We   consider the total program strategically, financially and operationally. As with any human resources  program, evaluations and metrics are essential to proving the program's strategic value.

    Policy Development and Design

    Our written policies establish clear rules to ensure that all employees are treated consistently and fairly. The written policy prevents favoritism and pressure from managers to provide different treatment for their own hires or preferred employees. It also lays out information so that employees who relocate know exactly what is included and can make informed decisions.

    Our relocation policies generally have three levels of coverage, depending on the group to which the employee belongs:

    • New hires, typically young recruits or those with limited experience.
    • Experienced employees, such as those who have been in the workforce for some time and who are more likely to be settled with a home and/or a family.
    • Executives and other high-level employees, who are likely to be deeply entrenched in their current locations and have family and community ties.

    We adopt policies to fit our circumstances and have policies for all three levels.

    We offer attractive relocation packages to executives and high-level employees, but are faced with the high costs associated with such packages. The key question is whether the financial gain of hiring or transferring an employee will outweigh the cost of the relocation. There is considerable pressure on HR to trim costs and tweak polices so employees can still be relocated to where they are needed. Using metrics such as cost/benefit analysis, for example, when analyzing real estate costs, helps create a picture of the total costs of the move.

    We are offering flexible relocation packages to contain costs by offering core relocation benefits and optional benefits based on employee needs.

    What is a job relocation package?

    Though it’s not a requirement, many companies offer some sort of job relocation package to employees. A job relocation package typically covers part or all of an employee’s moving expenses when moving for work-related reasons. Oftentimes, these packages can be negotiated. Whether you’re a new employee moving for the job or an existing employee who’s being transferred to a new location, it’s in your best interest to negotiate a job relocation package with your employer.

    What can I expect from a job relocation package?

    Relocation packages vary from company to company. Even within that company, they may offer different relocation packages to different employees, depending on the employee’s status at the company. Many companies offer to pay a flat dollar amount to help with moving expenses. For example, a company may be willing to pay $5,000 to each employee to help with moving costs. Another common strategy is that the company simply offers to reimburse employees for certain moving expenses, such as the cost of hiring movers, renting a storage unit and living in temporary housing. In this instance, an employee will need to save all receipts related to moving.

    But not all moving packages are alike. In some cases, the company will pay for the full cost of moving. In others, you may be given a flat dollar amount to cover your expenses.

    If you're coming on board as a new employee and a relocation package isn't offered, you may be able to negotiate reimbursement of expenses as part of a counteroffer.

    Does a Company Pay for Relocating?

    There is no obligation on the part of an employer to cover moving expenses for either new or current employees. No laws require moving assistance. Employers may offer it as a perk at their discretion.

    We offer job relocation packages and may be open to negotiating financial assistance with your move.

    Whenever our company posts available jobs, we receive applications and resumes from all over. Job seekers who are willing to relocate at their own expense usually will say so in their cover letter. An example of a job seeker relocating on his own would be the spouse of someone who is relocating the family to a new city.

    Practices

    Our policies on relocation usually fall into at least three categories for newly hired employees: Payment for full relocation costs, partial relocation assistance, or no relocation assistance at all. Although we won't pay for relocating a newly hired employee, we will pay relocation costs for moving a current employee to a new area. A full relocation package usually consists of payment for closing costs and realtor commissions for the sale of the employee's home and purchase of a new home. In addition, we that pay full relocation assume the costs associated with packing, transporting and storing the employee's household belongings as well as temporary housing and adjustment expenses, such as deposits for utility services and registering the employee's vehicles in the new city.

    What's Included in a Job Relocation Package?

    Relocation packages include the following:

    The Cost of a House-Finding Trip. The company may cover the costs of traveling to the new location to find a suitable home. These costs typically include transportation and lodging expenses.

    Home Sales / Home Buying. The costs of selling your home and purchasing a new home are commonly included in relocation packages. This would include closing costs, real estate commissions, and other expenses normally incurred when buying or selling a house.

    Job Search Help. Some employee relocation packages include job search assistance for your spouse or partner.

    Transportation. Companies may reimburse travel expenses to get to your new home.

    Temporary Housing. The cost of temporary furnished rental housing or a hotel for a certain period of time is often provided. Rent and utility fees are typically included for rental housing.

    Moving. The cost of a moving truck and other related expenses may be included.

    Full Pack / Unpack. When the company fully covers the expenses and logistics of the move, movers will be sent to pack up your household goods and transport them to your new home, where they will unload, and in some cases unpack, the boxes where you wish.

    Storage Unit Rental. Your new employer may pay for the cost of renting a storage unit while you get settled.

    Lease Break Coverage. Companies may sometimes pay fees associated with breaking your lease in your prior location.

    Temporary childcare services:Need to find a babysitter or daycare to watch your children before, during or after the move? You may be able to negotiate this into your job relocation package. At the very least, an employer may be able to help you find reputable and reasonably priced childcare services in the new city.

    Language classes:Those moving abroad to a non-English speaking country may need to take language classes before and after the relocation. Be sure to ask your employer whether or not they cover this before planning an international move.

    Airfare: Traveling by plane to the new city? Whether you’re traveling to scout out the city beforehand or flying there for the official move, your employer may be willing to include the cost of airfare in your job relocation package

    Elements of a Comprehensive Relocation Program

    There is no magic formula when it comes to relocation packages, but organizations must consider certain elements when constructing a domestic relocation program.

    Bonuses and pay adjustments

    Relocation monetary incentives are generally the "tipping point" in convincing employees to relocate. The health of the job market will influence what incentives employees need to make the decision to move. Cost-of-living adjustments and relocation bonuses are common.  Organizations in states with high tax rates may need to use these incentives to lure employees to relocate. High-Tax States Could Struggle to Lure Out-of-State Workers

    Site visits

    Relocation programs usually allow site visits so the employee and possibly a spouse can see the new office, tour the community, and learn about schools, housing and other local services. Policies can set the lengths of these visits, but a minimum of two days is common.

    Help with buying and selling homes

    Employer relocation programs include help with marketing a home an employee needs to sell or with arranging for purchase of the employee's house if it does not sell by a specified time. Other help that policies can offer include legal and financial help for canceling leases or assistance with getting an employee pre-qualified for a mortgage. These incentives may make the difference between an employee accepting or rejecting the relocation offer. More about the impact the economy has on housing and relocations is in the subsection "Housing markets."

    Moving expenses

    Employers may offer reimbursement for expenses like house-hunting, temporary living expenses and transportation of household goods. Some organizations forego reimbursement and instead provide lump sums, paid upfront to relocating employees to cover all expenses. Employees keep whatever might be left over or pay any expenses the lump sum does not cover. Lump sums mean human resources does not have to haggle over expenses or keep detailed records of an employee's every receipt.

    Payback clauses

    We invest a lot on relocations and frequently lose those investments when employees leave shortly after a move. We include a payback clause in relocation agreements to recoup those costs. Under a payback clause, a relocated employee agrees to reimburse the organization all or part of the employer's expenses for the transfer if the employee leaves the organization within a specified period, usually a year to 18 months. Industries with high turnover rates tend to use these clauses more frequently. Some employers choose not to include payback clauses, fearing the clauses may be a disincentive to relocate. Employers must confirm that state law permits payback clauses before implementing this practice.

    Family support

    Families relocating need plenty of support from us the employer. We do not assume that an employee's excitement to move to a new office and new residence will offset the stress of the move for the employee and his or her family. Spouses or partners who move with the employee might need help finding jobs. Children's issues with relocations, such as the pressures of new schools and loss of old friendships, are often overlooked. In addition, a move could affect several generations if the employee has elder care responsibilities. Cultural differences among geographical areas in the Germany can also disrupt the family, interfering with the success of the assignment. At Some Companies, You Can't Hire One Spouse Without Helping the Other Job Hunt

    Our competitive and comprehensive relocation program include spousal assistance services that help a spouse find work, policies that give relocating employees enough time off to scout schools and other services, or help with finding elder care. Whatever shape we the employer's support for the family takes, human resources  needs to involve both the employee and the employee's spouse.

    Communication

    Once a policy is in place, communicating it to employees is vital. Communicating about relocations should balance two needs—the need to show employees they are valued and the need to inform employees about the services to which they are entitled. Poor communication about relocation can lead to stress, performance issues and high turnover rates for transferred employees. We properly communicate to employees the services to which the transferee is entitled, and continue communication through the entire process.

    A formal letter of agreement to relocate is an important initial communications tool because it sets out our policy and details of the move. Employee manuals make relocation policies available. E-mail provides a paper trail of communications to which human resources  can refer during relocations. Communication should include a debriefing process once the move is made, so we can assess how the relocation went.

    Special Circumstances

    We focuses on the permanent relocation of individual employees, but there are two special circumstances that HR should consider when creating relocation policies.

    Group moves

    Group moves involve entire organizations or business functions that move far enough away that employees and their families must relocate as well. Group moves can strain an organization's relocation resources and preoccupy a large portion of the workforce for a long period, all while the organization tries to maintain its normal business production. Group moves have their own dynamics that HR must address, such as explaining why employees are moving (typically not for a promotion) and handling employee gossip about the move.

    Temporary relocations

    Temporary relocations are on the rise in Germany. We the employers find that this strategy is a great way to reduce costs while increasing productivity around a particular business initiative. Having a transfer of less than one year is financially advantageous because a family move for such a short period is rare, and it offers a significant tax savings to us and employees as these expense reimbursements are often excludable as business expenses rather than as relocation expenses.

    Outsourcing

    With the high cost of relocation and the risk of lower employee retention, relocation has become a high-stakes game. Because of the risks, relocation service outsourcing is gaining in popularity as we the employers turn to these services to manage the details and make moves successful. .

    Vendor selection

    We often outsource relocation because it allows us to retool our relocation programs, enhance services or cut costs by reducing internal head count. Although hundreds of companies offer services, choosing the right vendor can be difficult and depends on our specific needs. We begin by understanding their own goals for relocations. Proper planning and preparation—such as assembling an internal team that includes HR, finance, recruitment and procurement—will ease the vendor selection process for us. .

    Contract negotiations

    The process does not stop once we chooses a vendor. Contract negotiation requires information and planning. For example, We consider several issues when negotiating a relocation contract with a household goods (HHG) carrier: Does the carrier have sufficient backup in all parts of the country, and can the carrier be reached at any time? Does the carrier offer discounts for multiple moves? Knowing what to look for in an HHG carrier gives us an advantage.

    Communicating with vendors

    Some of the most important tools we need to manage relocations and minimize the unexpected are a clear relocation policy, a reputable relocation services provider and strong communication practices among all the parties involved. Poor communication will overshadow even the best policy and the most capable vendor. We understand the expectations of the individual being relocated and to fully convey those expectations to the vendor.

    Relocation involves costs, a toll on productivity and stress for both the individual being relocated and us the employer. There is always room to improve, streamline processes and make better vendor selections. We survey employees about the performance of their long-distance movers and other relocation service providers to help them select effective vendors in the future. Surveys help assess whether the service provider delivered its promised results.

    Legal Issues

    Relocating employees involves more than simply moving people and their goods. We consider legal issues such as contracts, data privacy issues and taxes.

    Relocation agreements

    Just as having a contract between us and the relocation vendor is vital, it is also imperative to have a written relocation agreement between us and the relocating employee. An agreement clearly states who is responsible for what and sets the limits of our relocation policy. An agreement protects us by preventing managers from making overly optimistic statements about continued employment or advancement that could be considered oral or implied contracts.

    Personal information

    We protect employees' personal information. Using a vendor involves the transfer of the employee's personal data, and HR perform due diligence with its vendors to ensure security.

    Tax considerations

    Taxes can be a complicated issue when relocating employees. Tax considerations for temporary relocations of less than 12 months are different from tax issues related to permanent moves. Taxes vary by state and can be complicated by other factors, such as a home sale. Appropriate experts should review tax and legal issues to make certain that policies and practices are in line with our legal obligations..

    Economic Factors

    Housing markets

    The real estate market has a tremendous effect on our relocation program, influencing both the relocation budget and employees' willingness to move.

    We help sell employees' homes, cover an employee's loss on a home sale and pay for temporary housing. When considering the real estate market, we look at increased costs such as duplicate housing costs and use of incentives to generate demand and stimulate sales of homes. Other tools to speed relocations include buyer value options, where the buyer sells the home to a third-party relocation company. In some situations we even buy homes by ourselves to secure much-needed talent.

    When making decisions, we also consider the real estate market on a regional basis. Because markets vary in different areas, we develop distinct relocation policies for each region. .

    Willingness to relocate

    Employees are declining relocation offers, according to a survey. And when employees are at risk of taking a loss on their homes or at the worst, being unable to sell them at all, they will be hesitant to take a relocation opportunity. But some employees and the unemployed, hurt by recent tough times and a tough job market, are more willing to pull up stakes. They may want to move out of geographical areas hit particularly hard or may just be seeking better or more stable employment options.

    When it is in the best interest of the company to relocate an employee, the company will provide relocation assistance to the employee under the provisions of this policy.

    Eligibility. Exempt employees being reassigned to work locations more than 50 miles away from their former worksite may be eligible for relocation assistance. Limited relocation assistance may be provided on a case-by-case basis to nonexempt employees; however, provisions of any agreement will require the approval of the department head and the HR department.

    Duration. Any assistance provided under the terms of this policy (excluding category 5 below) will be provided within six months of the date the associate is reassigned to the new location.

    Advances/Reimbursement. Some expenses will be handled via corporate advance while others will be handled as a reimbursement item similar to business travel expenses. These will be identified in the employee's relocation agreement.

    Repayment Provision. If the employee voluntarily leaves the company within 12 months of relocation to the new worksite, the employee must agree to reimburse the company for costs incurred under categories 3 and 4.

    Taxes. The company will maintain a record of cumulative relocation expenses and will provide the appropriate tax forms to the employee for personal federal and state income tax filings in the appropriate year.

    Agreement. Each relocating employee will be provided with a relocation agreement that will set forth the specific obligations of both the company and the employee. When possible, such agreements will be approved and provided to the employee at least 10 days in advance of the relocation.

    Categories of Approved Relocation Expenses and Limitations. The following categories of expenses will be provided by Manpower :

    1. Preassignment site visit. The employee will have the opportunity to do a site and local area visit for a period of no more than five days. The company will pay transportation, lodging and meal allowances for the employee and spouse. The employee will maintain records for expenses incurred and will submit them for reimbursement through accounts payable.
    2. Temporary living expenses. The relocating employee (and dependents) will be eligible for travel expenses to the new worksite and temporary lodging and meal allowances for a period of no more than 15 days. Receipts for temporary living expenses for lodging and meals will be submitted to accounts payable for reimbursement. If flying, the employee must submit proposed travel agendas to the corporate travel office 15 days in advance of travel; the office will be responsible for handling reservations and airfare.
    3. Relocation of household goods. A moving allowance and related insurance coverage for up to 12,000 pounds of household goods will be provided to the employee. The associate will be responsible for obtaining three estimates from national residential movers and submitting them to the HR department prior to accepting any moving proposal. Upon approval, the corporate travel office will authorize the movement of household goods and handle vendor payment.
    4. Miscellaneous associated expenses. Manpower will provide assistance for costs incurred with the move, including lease breakage reimbursement, utility costs for service hookups and related service charges. Expense records must be obtained and submitted to accounts payable for reimbursement.
    5. Relocation bonus. Manpower will provide a relocation incentive bonus to the employee in the amount of $250 per month for the first 12 months of the assignment in the new location to ease the employee's relocation and transition. The relocation bonus is subject to federal and state withholding taxes.

    • The purpose of this policy is to provide a standard procedure for the relocation of newly hired and transferring exempt level staff to locations elsewhere in the United States. Under the general provisions of this policy, a written relocation and repayment agreement for relocations will be entered into with the new hire or employee. The provisions of this policy will apply only to assignments and relocations that are planned to exceed 12 months.
    • Manpower will reimburse reasonable amounts or provide advance assistance of expenses incurred as a result of the relocation of staff for distances that exceed fifty miles from their current place of residence and assigned work location.
    • Manpower will audit expenses against relocation agreements and employees must document receipted expenses claimed for reimbursement.
    • Any request to exceed the provisions of the standard relocation policy (outlined below) must be approved by two levels of management above the department head.

      All relocation expenses must be incurred within 180 days of the date the written relocation agreement is signed. Expenses incurred after this period will not be reimbursed. Some expenses will be paid directly by Manpowerto the vendor. For all other reimbursement expenses, the employee must obtain receipts for incurred expenses and submit them along with company reimbursement request forms.

    Approved Expenses – Standard Agreement

      A. Per diem and Lodging

      Manpower will reimburse costs for per diem living expenses to include temporary lodging for eligible employees and dependents for a period not to exceed 30 days. Lodging and per diem expenses may be at the site of departure or site of arrival or split between the two sites. Per diem expenses for meals and incidentals will be provided at one-half the daily rate for the employee for each eligible dependent.

      B. Site Visit

      An employee and spouse will be permitted and will be reimbursed for travel costs, per diem and lodging costs to the planned transfer site to tour the company facility, orient themselves with the area in which it is located, and look for appropriate housing. The maximum site visit period permitted is five days.

      C. Transportation – Employee/Dependents

      Costs for relocation travel of the employee and dependents to the transferred facility will be reimbursed. Additionally, costs for travel to and from the transfer site will be reimbursed for up to three (3) two-way trips for the employee to visit the prior home. Travel noted above will be by means of the most cost-effective common transport carrier using coach fare; however, in many cases, personal vehicles may be the preferred means of travel.



      D. Household Goods

      Manpower will pay actual costs for the packing, movement, and insuring of household goods and personal effects for such goods up to a maximum of 14,000 from point of departure to point of arrival. If storage of goods is required at either point, the we will pay for up to 30 days of storage. We will make all arrangements with the relocation van company directly through its national contract. 

      Any property of special value, i.e., art objects, paintings, jewelry, firearms, precious metals, and antiques should be separately insured or transported by the employee.

      The transportation of boats, recreational vehicles, firearms, special machinery, outdoor playground equipment, hot tubs, and other specialty items of a similar nature will not be paid by Manpower . 

      The transportation and boarding of small domestic pets, dogs, cats, etc. is permitted. We will reimburse costs associated with movement and boarding of such pets for a period not to exceed 30 days. 

      E. Miscellaneous Household Fees

      Manpower will pay the cost of appliance installation, fees for utilities installations, re-registration of personal vehicles and driver's licenses to a maximum of $1,000.

      F. Insurance

      1. Relocating employees are covered during periods of inactive status while traveling under Manpower accidental death and dismemberment insurance plan with coverage provided at two times salary to a maximum of $400,000.

      2. Under its national contract, while household good are in transit or storage, the company provides per pound insurance for up to 14,000 pounds of goods. If the employee prefers to purchase excess insurance over and above this limit, We will provide vendor contact information to obtain an estimate of cost for excess insurance.


    Repayment Provision

    If the employee resigns due to circumstances within his or her control, as determined by us, within 12 months of the date assigned to the transferred facility, the employee agrees to and will be subject to repayment of costs associated with the move.

    Tax Considerations

    Prior to or at the time the written relocation agreement is signed, the employee will meet with Accounts Payable staff to review the federal and state tax implications of all costs reimbursed by the company and its impact on the employee's taxable income. The employee will be given a written estimate of costs for tax planning purposes.

    Our Philosophy

    Manpower is a global company that operates over X offices worldwide. The transfer of employees between the various Manpowerunits, from headquarters to subsidiaries, between subsidiaries and from subsidiaries to headquarters, enables our company to better utilize its human resources, while offering efficient support to its business activity. In addition, it enables our executives and professionals to gain international business experience and opens up wider promotion paths.

    Objective

    The objective of this procedure is to define the processes, terms and conditions for transferring personnel from one Manpowerunit to another and to provide guidelines for the benefit and relocation package for such employees. While differing laws in various countries may influence some aspects of the policy implementation, the basic guidelines are to be maintained in order to ensure a unified company policy.

    The effective date of this policy is [Insert Date].

    Definitions

    Expatriate (Hereinafter “Ex-pat”) - An employee who is relocated from his/her home country to work at one of the subsidiaries of Manpowerabroad or at Corporate Headquarters for a period exceeding one year.

    Host country/ subsidiary - The receiving or destination country/subsidiary of the Ex-pat.

    Home country/subsidiary - Originating country/subsidiary of the Ex-pat.

    General Approval process for an Ex-pat assignment

    The transfer of an employee from headquarters to a subsidiary, between subsidiaries or from a subsidiary to headquarters, is contingent upon joint discussions held between the divisions and the subsidiaries.

    The Ex-pat position must be granted budgetary approval from the division and approved by the Corporate HR Forum. The host country has veto power over the corporate offer for all candidates except those in top management positions. In January of each year, the HR Forum will convene in order to discuss general Ex-pat recruitment needs for the upcoming year.

    Contract approval process

    Contracts of subsidiary management team are coordinated and approved in advance by the relevant Co-President and Corporate VP of HR. The rest of the Ex-pat’s contract is coordinated and approved in advance by the Corporate VP of HR.

    The employment offer, including salary, benefits and job description, is generated on behalf of the subsidiary by the host country HR Manager and/or relevant VP.

    When an Ex-pat relocates from one subsidiary to another, the receiving HR Manager will transfer the offer to the HR Manager in the Home Subsidiary and to the Corporate VP of HR.

    As a rule, the entire process of transferring employees between the various company units (subsidiaries/headquarters) under Ex-pat terms is coordinated by Corporate VP of HR (as described above).

    Standard Assignment Period

    Ex-pat status is restricted to a period of up to 5 years. After this period, the employee is no longer employed under Ex-pat terms and conditions, but rather, under local terms. Exceptions are granted under very limited circumstances and require written explanations and approval of the subsidiary president and the Corporate VP of HR. Under no circumstances will the extension of Ex-pat status exceed an additional 3 years.

    Transferring from one subsidiary to another is considered a new assignment in this context.

    Terms of Assignment Termination

    Completion of the Ex-pat assignment requires a ninety (90) day mutual notice period. If the Ex-pat assignment is termi­nated by the company for any reason other than a breach of the employment agreement on the part of the employee, s/he will be relocated to his/her home country in accordance with the company’s then-current relocation policy and will be exempt from repaying the standing relocation loan

    Relocation Allowance

    In the event that the employee resigns from the company or from the assignment, he is required to repay the relocation allowance on a pro-rata basis as well as take responsibility for household moving arrangement and expenses (excluding countries in which the law requires the Company to cover Ex-pat relocation expenses, even in case of employee resignation).

    Budget allocation

    All Ex-pat benefits will be allocated to the host country budget.

    Commitment to Hiring the Ex-pat When His/Her Assignment is Completed

    Manpowermakes no commitment to re-hire the employee in his/her home country after his/her Ex-pat assignment is completed.

    However, should the employee work in his host country during the ninety (90) day notice period (see above), the employee will be granted the right to work for three (3) months at the company in the Home country on local terms as determined by the home country HR manager on a case-by-case basis.

    Commitment to return to the company upon assignment completion

    The employee makes no commitment to return to the company upon completion of his/her assignment. However, s/he may be eligible for repatriation benefits (see “Repatriation Policy & Benefits”) upon return to his/her home country.

    Spouse Status/Domestic Partners

    Manpower will extend spouse status to domestic partners. Ex-pat terms apply to the employee, his/her spouse or domestic partner and their children.

    Salary Review

    Salary review takes place in accordance with the host subsidiaries policy as approved by corporate policy.

    Tax

    The Ex-pat is responsible for paying any tax liability incurred from benefits and compensation received in both his/her host and home countries (excluding countries in which the employer is required to deduct the taxes from all paid benefits).

    Option Plan

    Options are granted, if applicable, in accordance with host country policy.

    Retention of Home Country Social Benefits

    The company will cease to fund payment to retirement plans for Ex-Pats for the period of employment in one of the Company subsidiaries. Following are details on the implementation of the decision:

    Ex-Pats Recruited from within Manpower

    Upon the termination of employee-employer relations with Manpower– prior to his relocation to the subsidiary, the Ex-Pat will sign an employment termination agreement with Manpower . The amounts accumulated by the employee in various funds, will be released

    Ex-Pats Recruited from outside of the Company

    In accordance with the above-mentioned policy, no amounts will be allocated to retirement and national insurance to Ex-pats recruited from outside the company as of January 2004.

    Ex-Pats Currently in Office

    Employees will be granted the option to choose between the termination of employer-employee relations and between the continued payments of funds, up to a ceiling of 5 years after their departure to the host subsidiary – a time in which, according to the procedure, the employees cease to carry Ex-Pat status.

    The termination of employee-employer relations, in this context, is accompanied by the release of accumulated funds only, with no supplement. Any employee decision (continued payment of funds or termination of relations) will be backed by a document signed by the employee.

    Health Insurance

    The Employee and his immediate family are covered by local or international health insurance as per the host country’s policy.

    Performance Appraisal

    In accordance with host country policy (as per corporate policy).

    Recruitment and Selection of Ex-pats

    Ex-pat recruitment is conducted either internally (i.e. within the company) or externally.

    Internal Recruitment

    The recruitment process must include a professional recommendation from the division/unit/subsidiary and personality assessment of the employee and his/her spouse conducted by the HR manager (in Corporate, HR manager of the relevant Division or by the Recruitment manager) and/or by an external assessment agency.

    Once a final decision is made in the home country, the internal candidate will be interviewed at the host country.

    Should the host country HR manager decide to hire, s/he will issue a contract to the employee in cooperation with the HR manager in the home country.

    The home country HR manager is charged with care of the administrative processes surrounding the relocation of the employee, including the signing of a non-paid-vacation/leave of absence agreement, which identifies preservation of rights benefits but otherwise confirms the lack of a contractual relationship between the home country company and the employee.

    External Recruitment at Corporate

    In cases where there is no suitable internal candidate the Corporate Recruitment manager in cooperation with the HR Manager of the relevant division, will manage the search.

    The external candidate will be interviewed by corporate managers and by the HR department. Assuming the candidate makes a positive impression, an external personality and capabilities assessment process of both the candidate and his/her spouse will be performed by a specialized agency.

    Once Corporate makes positive recommendation, the candidate will be interviewed by the host country.

    An acceptance by the Subsidiary will result in either:

    • The Subsidiary offering the position to the candidate and employing him/her from day one (the preferred option), or:
    • The candidate signing a temporary agreement with Corporate until completion of the training period and/or residency visa procedures. In this case, a secondary employment agreement for the assignment will also be signed with the Subsidiary.

    Work Visa

    Engagement in an Ex-pat employment assignment is contingent on successful attainment of work authorization in the host country. The process for being granted a work visa differs with the country of destination. Company is responsible for supporting the application for a work visa for the employee and a residence visa for the family.

    It is the responsibility of the host country HR manager in coordination with the home country HR manager to take care of the process.

    Family Visas

    Manpower is obliged to support the application of a residency visa only for the Ex-pat’s immediate family (for this matter, the term “immediate family” relates to the spouse and children of the Ex-pat).

    The employee has the responsibility to monitor the accuracy and expiration dates of visa documentation for himself and his/her family in order to maintain a lawful working status in the host country.

    Language studies

    The allotment of English/local language lessons will be approved in accordance with each Subsidiary’s existing policy.

    Cross-Cultural Orientation

    Written material containing informative details relevant to the country of destination will be delivered to the employee by the HR Department. A complementary cross-cultural workshop will be also coordinated for the employee, his/her spouse and their adult children. The workshop will concentrate on the psychological/emotional stages that the employee and his/her family are likely to face during the transition to a foreign country.

    The workshop will be coordinated by the HR Department in the home country once the contract is signed.

    Preview Trip

    The candidate who expresses a sincere intention to accept the Ex-pat assignment and his/her spouse/domestic partner (if they have school age children) are eligible for a preview trip.

    The preview trip is approved for up to 5 working days. It is recommended that the preview trip be combined with a business trip.

    The company will pay for round trip economy airfares to the host country and per-diem according to the home country’s per-diem travel policy.

    The potential candidate should notify the host country’s HR manager re: his/her preview trip schedule so that proper arrangements can be made.

    The potential candidate will meet with his/her direct manager and related business VP’s or managers to learn more about the scope of the job as well as the host country milieu.

    House hunting should be done during the preview trip. If possible, it is recommended that an apartment be identified so paperwork can be processed and the apartment readied for when the Ex-pat’s arrival to start his/her assignment.

    Visits to potential schools should also take place during the preview trip.

    Temporary Housing (at home country)

    Expats will be allowed to choose between using their 30 days of hotel and rented car right in their Home Country or at the Host Country, as long as they don't exceed the 30 days period limit.

    Special Vacation Days for Arrangement

    The Ex-pat is eligible for 5 days vacation leave, in addition to the annual leave, before going on the assignment, in order to arrange his personal matters.

    Traveling and Settling-in Policy & Benefits

    Cargo Shipment

    The company pays for a 20-foot container, insured for up to $40K (US).

    It is the responsibility of the host country HR manager to coordinate cargo shipment, except in the case of Ex-pats departing or repatriating from and to Corporate. In such cases, the Customer Department of the Operations Division coordinates the shipment.

    For Ex-pats moving from one subsidiary to another, on a sequential assignment, the Repatriation Policy and Benefits re: cargo shipment, shall apply.

    No payments will be allocated for the storage of freight for longer than the period required to release the container from Customs.

    Relocation Allowance

    The company will provide the Ex-pat with a Relocation Allowance to assist with miscellaneous transition expenses. The amount of the allowance will be $3K (US) for singles and $4K (US) for couples with or without children.

    The payment will be provided in the home country or upon arrival in the host country as per local procedures.

    If the Ex-pat resigns before completing two years of his/her assignment, he/she will be required to pay back the Relocation Allowance to the company on a pro-rata basis.

    Household Goods Loan- Company Inc.

    Upon arrival at Company Inc., the Ex-pat is eligible to apply for an additional no interest loan of up to $2.5K (US) to assist with miscellaneous costs.

    The loan is repaid as per subsidiary policy.

    Temporary Housing and Rental Car

    Upon arrival at the country of destination, the company will pay for car rental and hotel accommodations for a period of up to 30 days. During this time the employee is expected to make longer term automobile and housing arrangements.

    Special Vacation Days for initial settling

    Upon arrival to new country the Ex-pat is eligible for 5 days vacation leave, in addition to the annual leave, for arranging his personal matters.

    At-Post Policy & Benefits

    Annual Leave- as per host country policy.

    Holidays and Leave - as per host country policy.

    Housing- as per host country policy.

    Car- as per host country policy.

    Home Leave

    Ex-pats are eligible for home leave after each year, as long as they have a balance of one-year service commitment in the host country upon return from home leave.

    Home Leave Duration

    The duration of the home leave will be up to 21 days, as listed below:

    5 days – Training and meetings that will be regarded as working days at Corporate headquarters or at the Home Subsidiary headquarters. In case there is no need for the employee to attend any business meetings/training or if his home country is far from subsidiary headquarters, these 5 days, if taken, will be on the account of the employee’s annual vacation days allotment together with the other 10 days mentioned below.

    6 days – Weekends

    10 days – Annual vacation days

    Manpower will cover the round-trip coach fare from and to the country of origin for up to a 21-day visit by the employee and his/her family. In the event that the employee’s family extends its visit beyond the 21-day period and in the event that this extension incurs additional costs to the tickets, these costs will be borne by the employee.

    Home Leave Expenses

    The Ex-pat is eligible for a special (taxable) allowance towards expenses during home leave:

    Senior Subsidiary managers (Presidents/Vice Presidents) will be eligible for $2,000 (US). They are also eligible to a car for their use during the working days they are requested to work during their home leave period, up to a 5 days limit. Any other car expenses during the Home Leave period are covered by the $2,000 that Senior Subsidiary Managers are entitled to as Home Leave Expenses.

    Other Ex-pats will be eligible for $1,300 (US).

    Application for Home Leave

    Ex-pats will fill the home leave application form and obtain direct manager’s, relevant VP’S and host country HR manager’s approvals prior to taking the leave. This process should take place 3 months prior to the starting date of the planned home leave.

    Children’s Education

    Manpowerpays for children’s education from Kindergarten through Secondary School or High School Grade 12 equivalent or from age 2 to age 18, depending on local practice.

    In countries where the local school system is inappropriate or in an unfamiliar language, International/ American/ British/ Canadian School may be an appropriate alternative.

    Educational expenses supported by the company include the following:

    • School registration fee
    • Tuition fee
    • School bus transportation fee
    • The company does not pay for the following:
    • Summer school
    • Summer camp
    • School field trip

    Academic Studies

    Ex-pats (who are not subsidiary management members) will have the option to apply for academic studies, with a subsidy of the company, according to the local subsidiary’s terms and procedures.

    Ex-pats who are subsidiary management members (VP’s and Branch managers) will have the option to apply for academic studies, with a subsidy of the company (based on the subsidiary terms and procedure). The applications will be submitted with the subsidiary recommendations to Corporate HR VP for final approval

    Family Member in Home Country

    The company will provide a round trip economy air ticket for the shortest route to the host country as per the home leave policy of frequency of the Ex-pat, for family member/s who continue to reside in the home country. Family member/s in this case includes sons and/or daughters of the Ex-pat until age 18 or completion of mandatory military service.

    Death in the Family

    In the event there is a death in the Ex-pat’s family or the Ex-pat’s spouse’s family the company will pay for round trip economy air tickets to the Ex-pat’s home country for either the Ex-pat or his/her spouse. The Ex-pat is entitled to 7 working days paid leave under such circumstances. For the matter of this paragraph, “Family” is defined as: father, mother, spouse, son, daughter, brother or sister.

    Tax Preparation Assistance

    The Ex-pat is eligible for tax consultation reimbursement as per host country policy.

    Repatriation Policy & Benefits

    The benefits set forth below will be valid for a period of up to three months after the date of assignment completion and only in conjunction with a bona fide move of a permanent nature back to the employee’s country of origin or to a subsequent assignment in another subsidiary.

    Cargo Shipment

    Upon assignment completion the company will arrange and pay for the Ex-pat’s cargo shipment. An Ex-pat with 3 or more children will be eligible for a 40-foot container insured for up to $40K (US). An Ex-pat with fewer than 3 children is eligible for a 20-foot container, insured for the amount of up to $40K (US).

    It is the responsibility of the originating country HR manager to coordinate the shipment, except in the case of Ex-pats repatriating to Corporate. In this case, the Customer Department of the Operations Division coordinates the shipping.

    No payments will be allocated for the storage of freight in the host or home country for a period exceeding that required to release the container from Customs.

    Special Vacation Days for Arrangement (Host Country).

    The Ex-pat is eligible for 5 days vacation leave, in addition to the annual leave for arranging his personal matters, before departing to his/her home country or before going on his/her next Ex-pat assignment.

    Temporary Housing and Rental Car (Host Country)

    The company will pay for car rental and hotel accommodations for a period of up to 12 days if needed, at the employee’s regular location, prior to the Ex-pat departure from the host country. The host country HR manager is responsible for the coordination of these arrangements.

    Benefits for Employees Returning to Work at Company in Home Country

    Special Vacation Days for Arrangement

    The employee is eligible for 5 days vacation leave, in addition to the annual leave, to assist with his/her settling-in arrangements.

    Repatriation Grant

    The company will reimburse the employee for up to $1,000 (US), as per receipts, to help with repatriation expenses. “Repatriation Expenses” include such expenses as temporary accommodations, rental cars and tutoring.

    Responsibility

    This procedure may be changed occasionally. All changes require the approval of the Corporate VP Human Resources.


    Dual Career services are customized to best serve the career needs of each person. These services may include:

    • Job search assistance for up to one year
    • Confidential career assessment and counseling
    • Resume writing assistance
    • Assistance with interviewing techniques
    • Guidance to appropriate resources for career exploration and planning
    • Current data on how best to find job openings
    • Information about employment opportunities at Manpower,
    • Information on where to find employment opportunities and other employers in the surrounding area
    • Creative strategies for developing employment solutions with Manpower.

    If a spouse meets the criteria of a soon-to-be open position, the appointment may be filled without an open search. The unit that is creating the new position will evaluate the spouse’s qualifications as it would for any vacancy. Such review should include at a minimum, a review of a resume or curriculum vitae, contacting references and an interview. The person’s qualifications should be evaluated against the qualifications of recent hires. In the case of staff hires, the department must be involved in the evaluation as they would in any staff hire. Waiver of an open search process must be requested in writing and include supporting documentation showing the evaluation and endorsement of the hiring department. The request will be approved by the EE Office upon the endorsement of Human Resources and the President responsible for the hiring unit’s division. Any hiring of a family member must be accomplished in compliance with existing policy. .

    Dual-career services are initiated by contacting Employment Services in Human Resources. Contact may be made by email employment@germannymanpower.solutions or by calling 49208-885-3611. Services may be initiated by an administrator in the recruiting department, the individual being recruited by the department, or by the spouse/dual-career candidate.

    How We Help New Employee Relocate

    When employee relocates to work for our business, there are a few things we can do to help them through the process. Here are ways to support our new employee.

    After a lengthy search, we finally found the right candidate for a key job opening, but they'll have to move. Employee relocation is often a rushed and stressful process, especially for the worker actually enduring the move. Most employees expect financial support from their new employer to offset their moving costs. 

    What is employee relocation?

    Employee relocation is the process of moving a new or existing employee from one location to another for work-related purposes. Companies often offer services to assist these workers in their transfer. 

    We are not required to offer a relocation package, but it might be more difficult to recruit top talent if we don't, as a candidate might decide that the expense and hassle of moving outweigh the benefits of working for you instead of their current employer. 

    Whether you offer a job relocation package or not, you(we) should be upfront with this information and communicate it to our candidate early – don't wait for them to ask about it. This lets them realistically consider how much assistance they'll have with the move as they make their decision to accept or decline your job offer. 

    If you plan to offer relocation assistance, you (or your human resources specialist, if you have one on staff) need to discuss the specifics with your candidate after you extend a formal job offer. You should detail what your relocation package includes in writing, but it's not enough to email it or mention it to your prospective hire in passing when you extend the job offer. Take the time go over it on a phone call to ensure there are no misunderstandings about what is and isn't included.

    What does a relocation package include?

    Employee relocation packages are not cheap.

    However, the benefits of offering a relocation program are often worth the investment. These incentives increase the likelihood that our top candidates will accept the position with your company and feel good about their decision – and your business – as they start their new job. It also reduces the chance that they'll back out, which saves you the time of looking for a qualified candidate all over again. 

    Here are some offerings wez might include in our relocation package: 

    • Free visits: Finding a new home – and quickly – can be difficult. This process often requires frequent trips to check out houses for sale or apartments for rent. The Society for Human Resource Management suggests offering site visits for your new hire to get them excited about moving to your city and give them the chance to start looking for housing. 
    • Relocation allowance or reimbursement: If you can afford it, offer your new hire an allowance to offset their moving expenses. Companies provide this money either upfront as a lump-sum payment or as a moving expense reimbursement after the employee submits receipts for certain relocation and travel costs. 
    • Flexible start date: Yes, you need your new employee to start as soon as possible, but if they're moving for the job, it's probably going to take longer than the normal two weeks that you would expect from a local hire. Talk with your new employee about what relocating entails and set a realistic timeline for when they'll be on location and ready to work. 
    • Temporary housing: While most companies don't provide permanent housing for their relocating employees, many offer housing for the first month or two so the worker has time to adjust to the move. The employer typically covers the utilities during this time as well. 
    • Assistance selling a home or breaking a lease: Whether through loss-on-sale allowance for quick home sales or reimbursement for broken leases, many relocation packages take care of any financial ties to their employee's previous location. 
    • Packing/moving services and insurance: Your employee isn't going on a two-week vacation; they're uprooting their life so they can work for your company. As a simple repayment for their loyalty and flexibility, consider hiring professional movers and purchasing moving insurance to assist them. 
    • Transportation reimbursement: While you might not be gifting them a company car, you can at least cover your employees' transportation costs for the move. This includes any flights, Uber/Lyft or cab rides, train tickets, or other means of transportation. 
    • Help for spouses and children: Some relocation packages include allowances for child care and trips home. You might also help workers find employment for their spouse and schools for their children. 

    We are not obligated to offer all – or any – of these services, but doing so will show your workers you care about their financial well-being. However, make sure they understand that these reimbursements are considered taxable income.

    What if your newly relocated employee quits?

    Employee relocation can be very expensive for employers. It's not unreasonable to worry that your new hire will quit shortly after they're settled in your city, wasting the money you invested in their relocation package. 

    Before you disburse any relocation funds – either as a lump sum or a reimbursement – to your new employee, have them sign a relocation contract or repayment agreement that says if they leave your employment or are fired with cause before a certain amount of time with the company (typically two years), they will be required to repay the money you spent to relocate them.

    What if your business can't afford to offer a relocation package?

    The lack of a relocation package isn't necessarily a dealbreaker for prospective employees.

    "Besides receiving corporate incentives to move, there are a number of professional and personal reasons workers may opt for a change of scenery, including a higher salary, better perks, more affordable cost of living or advanced job title,"  

    If you're lucky, your candidate may have been hoping to move to your city anyway and just needed to have a job lined up before taking that step. 

    Either way, negotiate a deal that benefits both parties. One way you can make a new hire's relocation easier – that won't cost anything – is to give them local insight into their new city. Here are some examples of the information you could share.

    Housing advice

    If you know a good real estate agent, introduce them. Also share your own advice about the local real estate market, such as average home or apartment costs, and tips on which parts of the city have good neighborhoods for different demographics. For instance, if they have kids, tell them where the best schools are; if they're single, tell them which part of the city has the best social scene for young professionals. If there are any sketchy areas they should avoid, that's good information to share too. 

    If your employee won't have time to rent an apartment or purchase a house before their first day in the office, recommend nice extended-stay hotels or help them find an Airbnb rental in a good neighborhood.

    Transportation advice

    Even with the handy navigation apps on our phones like Google Maps and Waze, a local's tips on the best ways to get around are welcome. What are the easiest and fastest ways to get to your office from the employee's new home? 

    If you live in a drivable city, are there roads to avoid at certain times of day? If there's no parking at the office, what are the best options? 

    If you live in a city that relies on public transportation, where are the closest subway, bus or train stops to your employee's residence? How far are they from the office, and how much time will it take? Do they need to arrive at a certain time to avoid rush hour? Are there certain subway lines or bus routes that are notoriously unreliable? 

    Recommendations for nearby stores and services

    Sure, your employee could research this on Yelp, but a local's take can save them some time. Share the following helpful information with your new employee. 

    • Restaurants: What are the best options for various cuisines and restaurant types (fast food, takeout, casual, bar, nice)?

    • Grocery stores: Which stores are the cheapest? Which has the best produce? Which has the best deli?

    • Malls: Which one is the closest? Which has the best stores?

    • Banks: Which one has the best rates? Which has the most ATMs or branches?

    • Things to do and places to see: Help your employee discover the best of what your city has to offer. Share information about popular venues for upcoming sporting events, concerts, plays, or other cultural events; museums, theme parks, zoos and other attractions; and national or regional parks. 

    While no laws require employers to assist their new employees with moving, job relocation packages are worth the investment for most companies. By offering perks like this, you will attract a wider pool of candidates and be able to be more selective in your hiring process. 

    Consider a destination services package

    “Even if you provide a lump sum in place of a formal relocation package, you can still advise relocating employees on the benefits of a destination services provider,” adds Berry.

    A destination services package should provide assistance specifically for finding a home and the settling-in period that follows the move. Some common benefits destination services providers offer include:

    • Mortgage product counseling
    • Tax and legal counseling
    • Contract negotiations
    • Rental assistance programs

    It can’t be said enough – companies need to do more than simply give new hires or transferees a lump sum payment and say they’ll see them on their first day. A little guidance on services like destination services can go a long way in making sure your employees’ transition is a positive one.

    All You Need to Know About Notice Period for Resignation

    If you need to leave your current position and want to remain in good standing with your employer, you will need to give your company sufficient notice so they can prepare for your departure. Letting your employer know that you plan to leave the firm is considered polite and professional, and most employers expect at least a brief notice period.

    If you want to use your employer as a reference in the future, leaving a notice helps you preserve the professional relationship and end on a positive note. In this article, we explain the proper procedure for giving a notice period to your employer before you leave a position.

    What is a notice period?

    A notice period is the time range an employee sets between informing their employer of their resignation and their last day. When informing your manager that you plan to leave, clearly state when your last day will be to set the term of your notice period. Likewise, an employer is also under an obligation to give employees a fair notice period letter informing them about the termination of the contract.

    An employee can hand over their resignation without prior notice if they think there has been a transgression on the part of the company. Similarly, an employer can terminate the contract of an employee if they committed serious misconduct. You can also quit or be dismissed without notice if you live in an area with at-will employment laws.

    How long should the notice period be?

    There's no universal rule as to when you should give a notice period and for how long. Two weeks is a standard notice period for many positions, although high-level leadership positions and highly technical jobs need a longer notice period to enable the company to reorganise their essential functions. In the United Kingdom, the legally required notice period depends on how long you have worked at the firm:

    • No notice required if you have only been employed for a month or less
    • One week's notice if you have worked with the company for up to two years
    • One week for each year of employment if you have been at your job for between two and 12 years
    • 12 weeks notice for more than 12 years working at a company

    Businesses often outline their notice expectations when you sign an employment contract during onboarding. When deciding how much notice to give, think about how your notice could impact your remaining time at the workplace and how long it would take you to transfer your responsibilities to your coworkers or a new hire. Be considerate of company operations while also prioritising your career needs. If you have another job lined up in a month and are on good terms with your employer, you could consider giving a longer notice to ease the transition.

    What is 'pay in lieu'?

    If you submit your notice period letter, instead of letting you work for the requested amount of time, your employer may ask you to leave immediately. In such cases, you will be given the due salary for your notice period even if you don't work. For instance, if you have given two weeks' time as your notice period but your boss asks you to leave immediately, then you will be provided two weeks' salary without needing to work. This can happen only if your contract says you are eligible for pay in lieu and does not apply in at-will situations.

    What is 'garden leave'?

    Some employers may ask you to leave right after you submit your notice period letter while still keeping you on the rolls as an employee, a process known as 'garden leave.' This is a special case where workers are exempted from doing their job to maintain the company's confidentiality and access to essential information during a transition period. This becomes more important if you are leaving your current company to join a competitor firm.

    During 'garden leave,' you are still contractually obligated to your employer even though you are not working, compared to pay in lieu where you are immediately terminated as an employee and are free to work for other companies.

    How to give a notice period

    There are a few widely accepted ways to hand over your notice period letter. Giving a notice of resignation takes tact, especially if you are leaving the company because of dissatisfaction with management or a similar conflict. Approaching the situation with respect and considering the impact of your departure can help the process go smoothly. Here are a few tips to help you hand over your notice period letter:

    1. Continue good work ethics
    2. Write a brief and professional letter
    3. Be grateful and positive
    4. Inform your employer in person
    5. Expect a counteroffer
    6. Stay confident

    1. Continue good work ethics

    Once you decide you are going to leave your position, continue to hold yourself to a high standard of professional behaviour. One of the key functions of handing in a resignation letter is to maintain respect and uphold a consistent workflow during the time of transition. Your actions during a notice period can have an impact on your professional reputation and influence the people around you. Make a personal commitment to have a positive attitude and properly carry out your duties all the way to your last day.

    2. Be brief and professional

    When explaining that you are leaving the company, be positive and concise. The letter should list your last day and summarise in a respectful way why you are leaving. If you have another work opportunity, you can explain that you are leaving to pursue the next step in your career. Do not list long descriptions of grievances and workplace issues in the notice. Instead, save these topics for the exit interview or schedule a separate meeting with human resources. Briefly explain your course of action, then describe how you will help the company transition if possible.

    3. Be grateful and positive

    In a sentence or two, tell your employer how grateful you are for the opportunity they provided you at their company. Reflecting on your job as a learning experience and showing thanks for their guidance can affirm your positive professional relationship. If you want to ask this employer for a reference or recommendation letter, being appreciative in your notice is a great foundation.

    4. Inform your boss in person

    Speak to your boss about your resignation and notice period directly, even if you have emailed and given them a hard copy of your letter. This shows respect toward their role in your professional development and also ensures that they can act on the information quickly. Speaking to your manager in person gives them a chance to explain company exit procedures and provides you with the opportunity to ask them questions.

    5. Expect a counteroffer

    If you've always been dedicated to the company and were regarded as an asset to its success, then it may be hard for your employer to let you go. They may want to keep you and offer you a pay raise or bonus or try to make enhancements to your contract. At this point, evaluate the counteroffer carefully and avoid making hasty decisions. Analyse all options and select what works best for you.

    6. Be confident

    Regardless of why you are resigning, be confident that you made the right decision for yourself and your career. Changing jobs can be a significant life change, and you might feel nostalgic about good times with your coworkers, relieved that you are moving on or many other emotions once you give your notice. Allow yourself to process the change so that you can move confidently into your next position.

    Notice period meaning

    Throughout your career, there may be times when you're ready to leave your job for a better opportunity. Even if you are eager to move on right away, it's professional to give your employer a few weeks' notice. This way, they can prepare for your departure and delegate your tasks. Here we discuss what a notice period is and how to go about submitting yours.

    What is a notice period?

    A notice period is the length of time your employer is aware of your departure from their company before you actually leave. Essentially, it starts when you submit your letter of resignation and ends on your last day of work. When you quit a job, it’s standard to give your company a few weeks to prepare before you leave.

    Why is a notice period important?

    A notice period ensures that you and your employer are on the same page. If you were to quit a job without proper notice, your team may have to scramble to take over your tasks and fill your position. By giving proper notice, you are being respectful and courteous.

    Giving your employer your end date in advance helps them prepare for you to leave. This way, they can begin to write a job posting, look over applications, and start interviewing candidates to take over your role. It also gives them a chance to delegate your tasks to other colleagues to take over in the meantime. Once you give your notice, begin to help your team transition. Whether it be making training materials or showing a coworker how to do your tasks, this will help you set your team up for success.

    It’s best to leave an old job on good terms, and giving your notice is one way to do so. When your team feels prepared for you to leave, they may be excited for you rather than resentful. You never know if you’ll need to ask an old coworker or employer for a favor. By leaving in the kindest way possible, you can continue to keep these professional connections, which often comes in handy when you need a reference.

    How long do I need for a notice period?

    The most common length for a notice period is two weeks. This should give your team enough time to take over your duties. Your length of notice can also vary based on your position and level of seniority. For example, if you were an executive of a company, you might let your team know months in advance. This way, you can help the company find and train your successor. Likewise, a manager or supervisor may give more than two weeks as well.

    Overall, use your best judgment when submitting your final notice. You want to consider any ongoing projects and what your coworker’s schedules look like. Remember there may not always be the perfect time to quit a job. Although it’s important to give your team plenty of notice, you can also consider what’s in your best interest. After all, it’s exciting to start the next chapter in your career.

    How to submit your notice

    Follow these steps when submitting your notice:

    1. Determine your final day of employment

    Give your employer a minimum of two week’s notice so they can prepare for you to leave. If you are considering additional notice, reflect on your role in the company and how many responsibilities you have. Make sure to also communicate with your new employer to set a start date. Consider if you want to give yourself some time off in between jobs or jump right into your new role.

    2. Talk to your supervisor

    Before actually submitting your letter of resignation, give your notice in person. Schedule a time to talk to your manager or supervisor to let them know you are leaving the company. Although you don’t have to give all the details about your decision, you could give them some general information. The most important thing to include is your final date of employment. During this conversation, you can also discuss how you will delegate your work.

    3. Put it in writing

    Writing an actual letter of resignation is helpful for your employer and human resources department. This way, they have your resignation on file and can reference it if needed. When writing your letter, format it like a formal business letter. In it, include the following information:

    • Your contact information: This includes your full name, job title, address, email, and phone number.
    • The date: This helps your employer remember when exactly you submitted your final notice.
    • A statement of resignation: In this section, include your final date of employment. You can also share why you are leaving the company. This is especially true if you’d like to give your manager some constructive feedback. Just keep in mind, your letter of resignation will make a lasting impression, so be careful with your words.
    • A line of gratitude: Write a sentence or two expressing your gratitude for this opportunity. You could even share how you’ll miss your team. Overall, it’s professional to wish your old coworkers and employer well.
    • Your signature: Along with a closing and your typed name, physically sign your name.

    4. Let your team know

    Upon submitting your final notice, you can let the rest of your coworkers know about your decision to leave. If you work closely with a handful of people, you might want to tell them in person. You can let the rest of your coworkers know with a company-wide email or a thoughtfully written message.

    5. Set your team up for success

    Now that everyone knows how much time you have left at the company, start to get your team ready for your departure. Ask your manager how you can help. You may need to train your coworkers on how to do your tasks, make how-to guides, and get your files organized. Likewise, you may want to schedule some kind of get together before you leave to get closure.

    Employment law- resignation

    What is a resignation?

    A resignation can be either verbal or in writing, and is a clear statement by you to your employer that you are going to leave your job. Threatening to leave, or saying that you are looking for another job, isn’t the same as formally resigning.

    What notice period do I have to give?

    This is usually set out in your contract of employment. An average notice period is between 1-3 months, but for senior employees, if could be 6 or 12 months.

    If there is no notice clause, or you do not have a written contract of employment, then the statutory minimum period of notice will apply. The statutory minimum period of notice where you have been employed one month or more is 1 week. If you have been employed less than a month, then you do not need to provide any notice.

    A much longer notice period may, however, may be implied if it is reasonable in all the circumstances (i.e. what is normal for a person of that seniority and in the industry).

    Where you are resigning based on a constructive dismissal situation, you would not usually be expected to work your notice as this would form part of your claim.

    Can my resignation be “with immediate effect”? Is it a good idea to do so?

    If you have less than 1 months’ service, and no notice provisions in your contract of employment, then you can resign with immediate effect. You otherwise need to give 1 week’s statutory notice (or longer if your contract provides for this).

    If you have less than 1 months’ service, and no notice provisions in your contract of employment, then you can resign with immediate effect. You otherwise need to give 1 week’s statutory notice (or longer if your contract provides for this).

    If you resign with immediate effect unwittingly, your employer may accept this, and you would then forgo your notice payments that you were otherwise expecting under your contract. This could represent a valuable loss, so you need to make sure you really intend to resign with immediate effect, rather than making it clear that you are providing the appropriate notice under your contract of employment.

    In any event, a resignation with immediate effect could put you in breach of your contract. Your employer may then decide to make a claim against you for losses suffered as a result of your breach. This is a worse case scenario, and you would expect a sensible dialogue to take place during any resignation process. The point is that you do need to be careful.

    Should I give my employer the “heads up” that I am going in to resign on a future date?

    This will depend on how good the relationship is with your employer. We would generally say, however, that giving a “heads up” is not a good idea as we have seen many employers accept this as your actual resignation. This would mean you could be leaving earlier than you had intended.

    Also, your employer may not be predisposed to treat you in the same way as before, after stating an intention to leave (without formally handing in your notice). This could work against you at a time when you want a smooth transition into your new job.

    How do I resign? Will a verbal resignation be enough?

    Most employment contracts require employees to give written notice of their resignation. If you chose not to do so in these circumstances, the notice period will not begin to run until you give your employer written notice (unless they are prepared to accept a verbal notification). If you don’t have a contract, or the contract is silent on how to give notice, you may give verbal or written notice.

    What do I write in my letter of resignation?

    In your letter of resignation you should set out the fact that you are resigning, together with how much notice you are giving and when your last day will be.

    If you are resigning following unfair treatment by your employer (such as bullying or allegations of poor performance), and are considering bringing a claim for constructive dismissal, then what you write in your letter of resignation is very important. You should make sure that you set out the full circumstances of why you have resigned so that you have the necessary evidence to formulate a claim at a later date if needed.

    We have seen many examples of unhappy departing employees who want to make a claim, but who then send a resignation letter stating how much they have enjoyed working with their employer- and thanking them for the opportunity. This is not a sensible move. Even ending your resignation letter with “kind regards” or “my very best wishes”, is perhaps taking it too far. This could adversely affect your credibility when you are later trying to argue that the relationship had fundamentally broken down.

    Do I need to resign to claim constructive dismissal?

    Yes, if you are leaving your employer because of a serious breakdown in the relationship, and therefore intend to make a claim for “constructive dismissal“, then you will need to resign first.

    What are my rights to still receive salary and benefits during the notice period?

    You are entitled to receive your normal pay during your notice period, as set out in your contract of employment. This includes any time that you are off sick (assuming you are entitled to sick pay), or on holiday or maternity, paternity or adoption leave. You should also be paid during your notice period if you are available for work, but your employer does not actually provide the opportunity for you to do so.

    What about stock options, restricted stock and deferred compensation?

    Your employment contract should set out how long you need to have to stay with your employer to realise your stock options. If you have already exercised the options, these cannot usually be taken away from  you. If you have not exercised them, it may be possible to negotiate whether you can still realise any of the value of your options.

    If you leave your employer prior to the date your Restricted Stock Units vest or are fully distributed, it can be quite usual that you forfeit your units. You need to check your employer’s plan for details.

    You should also check what the position is regarding any deferred bonus, especially in relation to the unvested value, when it will vest and when the deferred payments will be made.

    What if I wish to give less notice than what my contract provides for?

    The most obvious reason for you to do this is because you have found a new employment opportunity and the start date is before your notice period expires. Practically you can do this, however technically you would be acting in breach of contract, as you would not be giving the correct notice. It is always best to discuss this with your employer and try to reach an agreement.

    This could be met by a number of different responses:

    • your employer could accept your resignation with an early termination date, which might actually suit them;
    • they could insist that you work your full notice period. If you nevertheless refuse to do so, your employer could try to pursue a claim for breach of contract against you. In practice, it is rare for employers to pursue such legal action, and they are only likely to do so if they suffer loss as a result of your early departure. For example, your employer may incur an increase in salary costs to replace you during your notice period or may suffer some other financial loss (especially if you hold a senior position);
    • your employer could refuse to accept your immediate resignation, and seek an injunction from the courts to enforce the employment relationship as continuing for the duration of the notice period. Whilst most employers are unlikely to be willing to go to these lengths, this is a useful tactic for them to take, especially in relation to senior employees who have the potential to cause significant disruption. Often, the mere threat of an injunction may be enough to persuade a departing employee from breaching his contract.

    Can I be put on garden leave or paid in lieu of notice once I have resigned?

    Yes, once you have resigned, your employer could decide to either put you on garden leave or insist that you leave straight away by “paying you in lieu of notice” if your written contract provides for any of these options. If there are no such provisions in your contract, your employer will be in breach if they go down this route, although it doesn’t mean you have necessarily incurred much in the way of losses.

    Can I resign before or during a disciplinary process?

    Yes, you can. In fact, it is not uncommon to consider resigning when you are facing disciplinary allegations, but this is a very tactical situation and one that ideally you should take legal advice on before you make any decision. The benefits of resigning on the face of it are clear. You would be able to avoid having a gross misconduct dismissal on your record, because you resigned first. However,such a knee jerk reaction could be seen to be evidence of your guilt. At the same time, it could weaken any subsequent employment tribunal claim you wish to make, and could also negatively affect your job reference.

    You also need to consider that even if you do resign, your employer could continue the disciplinary process during your notice period, and ultimately still dismiss you for gross misconduct. This would supersede your resignation, with the effect that the balance of your notice period is cut short.

    The above having been said, if the allegations against you are totally unfounded or unsubstantiated, you may be able to argue that your employer has made your position untenable whatever the outcome of the disciplinary process. In this scenario, you would be claiming that you have been “constructively dismissed”, and you would be resigning with immediate effect. You would then have a right to make a claim for constructive dismissal (if you wished).

    If you decided to ride out the disciplinary process which resulted in a gross misconduct,  this could seriously hamper your ability to find new employment. This is why it is far better to see if a negotiated settlement can be found with your employer, which allows you to leave with your reputation and integrity intact- and which provides you with a  job reference to take to your new employers. This is why a negotiated exit with your employer is by far the best route to take.

    Can I withdraw my resignation?

    Generally no, as once you have given notice, it can only be withdrawn if your employer agrees (and there is no obligation for an employer to agree to the withdrawal).

    If, however, you resigned in the heat of the moment, for example in anger following an altercation or under significant pressure, a retraction may be possible if you withdraw the resignation very quickly. Indeed, employers are expected to give an employee a reasonable period of time to calm down and reconsider whether he or she really does want to go ahead with the resignation. The better chances of success in winning the argument is where you communicate the retraction to your employer within a very short space of time- certainly no longer than a few days and in most cases, either the same or following day.

    If your employer fails to do this, it could result in a finding of unfair dismissal.  The rationale behind this is that if you were entitled to withdraw your resignation, then you are still technically employed, and your employer’s unreasonable refusal to accept this amounts to a “dismissal”. A tribunal would look at the facts and ask what a reasonable employer would have understood the actual words to mean. A more prudent employer would seek a clarification of your intentions where the words used were not clear, or made in haste.

    Can my employer refuse to accept my resignation?

    Your employer cannot refuse to accept a resignation which is clearly and validly given. You should though, check your contract of employment to see if provides for your resignation to be submitted in a certain way, for example, in writing, and if so you should follow this, otherwise it may not be valid.

    Can I take holiday during my notice period once I have resigned?

    Yes, you can if you have accrued but unused holiday, however your employer is entitled to refuse the holiday request, which might be necessary if, for example, you are required to complete a project before your departure. If you booked annual leave prior to resigning, and the holiday falls during the notice period, your employer should permit you to take the holiday unless there are compelling reasons for you not to do so.

    Can my employer insist that I take my holiday during my notice period?

    Your employer may insist that you take your unused annual leave during your notice period, if your contract of employment allows this. Even if your contract does not include such a clause, your employer may still ask you to take accrued holiday if you have not already requested holiday yourself. In these circumstances, you would need to be given sufficient notice by your employer. The notice should be equal to twice the length of the holiday period, unless there is a contractual provision to the contrary. For example, if you have 5 days’ accrued holiday remaining, you should be given a minimum of 10 days’ notice.

    Can I be off sick during my notice period?

    Yes, you can be off sick and you will be entitled to receive your normal rate of pay, contractual sick pay or SSP, unless you have exhausted this already prior to your notice period commencing.

    Will I receive my full notice pay if I resign during a period of being off work due to sickness?

    If you hand your notice in during a period of sickness where you are already on reduced pay, whether you should receive your full pay for your notice period will depend on the length of notice.

    The basic position is you would not be entitled to full pay for your notice period, only the balance of any contractual sick pay or Statutory Sick Pay for the duration of your notice period if you remain on sick leave.  

    If however, your contractual notice period is less than one week more than your statutory notice entitlement, your employer should pay you your statutory entitlement to notice on termination. Your statutory entitlement to notice in a resignation scenario is 1 week (unlike in a dismissal scenario when this is 1 week for every year worked). For example, if your contractual entitlement to notice is 1 month, and you have been with the company for 4 complete years, your contractual entitlement to notice (1 month) is less than 1 week more than your statutory entitlement to notice (4 weeks) in the event you were to be dismissed. If you were to be dismissed, you would then be entitled to 4 weeks’ pay, although if you were to resign, you would be entitled to 1 week’s pay.

    Will I lose my right to a redundancy payment if I resign before the process has completed or before selection has been made?

    Yes. If you have not yet been made redundant and you resign beforehand, then you would not be entitled to receive your redundancy payment unless your employer otherwise agrees.

    What other important matters do I need to consider once I have decided to hand my notice in?

    • Restrictive covenants– many contracts of employment will contain post-termination restrictions which may hamper where you can work, including what clients you can or cannot take with you. Ideally, you would check your contract of employment to see what it says in this regard.
    • Bonuses– once you have resigned, make sure you understand the bonus provisions in your contract of employment, as many will state that you are not entitled to a bonus unless you are still employed at the “bonus payment date”.
    • Copying  your employer’s files and data to your personal email– we have seen this so many times, and it can lead to an unsavoury end to your employment. You may think that it is harmless to transfer files that you are working on during your notice period (such as client lists), but employers don’t like it. They may well be monitoring your activity and there is often a degree of suspicion towards departing employees. We have seen many people being disciplined during their notice period for breaching email and/or confidentiality provisions in their contract of employment at this time, which had led to gross misconduct proceedings.
    • Make sure you have removed or transferred any personal data from your work PC or laptop. You may otherwise find that you have lost the opportunity to do so, especially if you have been asked to leave the premises after you have resigned, or are frozen out of your work systems.
    hen an employee has resigned from the services, one of the most important time periods employers and employees have to go through is the Notice Periods. Notice periods are quite ambiguous in terms of length of notice periods, leave or benefits eligibility for employees serving their notice periods.

    Notice periods are crucial periods during which employers must take important  steps to ensure that the exiting employee is handing over all responsibilities to his/her successor and the transition is smooth.

    How do you decide on the length of the notice period?

    The length of the notice period is usually mentioned in the employment contract at the time of joining. The length is usually different for confirmed employees and employees on probation.

    Probationary employees have a shorter notice period as compared to per permanent employees. Athough there isn’t any specified time period , notice periods usually last for 30 Days for permanent employees and 15 days for employees of probation .

    It is also observed that notice period lengths change according to industry. IT industry or the Banking industry usually has employees serve 90 Days of notice as well.

    This amount is mentioned as “Recovery Amount” in the Full & Final Settlement Statement that the employee receives on his last working day. This amount is then reimbursed to the employee by the new hiring organization at the time of joining.

    Mostly companies buy out employees’ notice periods so that the employee can join them at the earliest.

    Are the employees on Notice Periods eligible for Leaves?

    The purpose of a notice period is for a smooth transition and smooth handing over process. Usually employees on notice periods are encouraged to not take any privileged leaves. Privileged Leaves are en cashed in their full & final settlement statement.

    Notice Buyout

    In the employee exit process, if an employee has to leave the job, he has to resign and serve a notice period as per the company policy. Notice period varies from company to company. Typically notice period is of 30 days to 60 days. In case an employee has to leave the job on an urgent basis due to studies, early joining in the new job or any other reason, he has an option of notice buyout.

    The employee has to make payment for the notice period not served and this money is reimbursed by the new employer if he is joining somewhere. For example, if an employee is supposed to give a notice period of 60 days but he can serve a notice of 30 days, he has to pay 30 days salary to his ex-employer  Notice Buyout option also varies from company to company as all the companies do not provide a buyout option for the complete notice period.

    Notice period buyout

    A buyout is a transaction between companies and notice period buyout means as per urgent requirement, the hiring company of the employee buyout the employee before the expiration of the notice period. Companies can deal with buyouts in various ways as indicated by the employer.

    What is buyout notice period?

    In Buyout notice periodthe employee presented with full and final settlement details to the employing company for reimbursements for settling the reliving procedure from the previous employer organization Or else hiring company pays the employee reimbursements as an advance or bonus for buyout paid to the previous employer.

    Notice period buyoutis calculated on a gross salary of the employee. It depends on the company that termination will take immediate effect or the employee has to serve notice period. After 90 days of time in the notice period employed is not obligated to work for the company.

    Should you ask for a buyout from your employer?

    With the economy in flux and employers thinking about how to stay afloat, you should be considering all of your options--including whether to take a buyout--to make sure you and your family are taken care of financially.

    What Is a Buyout?

    A buyout is when your employer pays to end your employment so they no longer have to pay you as an employee. Effectively, they’re “buying you out of your contract.” Often, organizations do this to cut down on expenses or if they are downsizing.

    But there are other times a company would offer a buyout. When companies need to save money, I often see them work with employees who are close to retirement and/or their highest-paid employees on a buyout agreement. This lets the company cut costs without damaging their reputation or putting the employee in a bad position financially.

    While buyouts are typically offered by the organization and are almost always optional, there are times when you can take the lead in prompting a buyout.

    Why Should You Consider One?

    In times of uncertainty, it might make sense to consider a buyout. Right now, we’re experiencing some unprecedented behavior in the economy and financial markets.

    In the vast majority of the country, shelter-in-place orders have forced workers to stay home. Businesses are shutting down. Companies are laying people off. And people are filing for unemployment at record numbers.

    You might wonder whether your own employment is secure. In some cases, companies have taken a firm stance in saying that they won’t make any coronavirus-related layoffs. Other companies aren’t so fortunate, and they may have to make cuts.

    If your company is in dire straits financially, and you think there may be layoffs coming, should you sit around and wait to see what happens (and hope you don’t get laid off), or should you proactively approach your company about a buyout?

    Should You Take the Lead or Wait for Your Employer?

    Let’s go through the pros and cons of both waiting for your employer to make their move and being proactive.

    Waiting for Your Employer

    If you wait for your employer to make a move, there are a few possible outcomes.

    The best case scenario (assuming you like your job at least a little–saying nothing of needing the money) is that things go back to normal and you keep your job.

    The other end of the spectrum is being laid off. Sure, you can apply for unemployment, but I’ve heard recently of a four-week waiting period for approval, and it may not be enough.

    A solution that may fall in the middle is a buyout. Companies are cautious about offering buyouts because it’s a sunk cost. Think about it for a minute–if you’re a business that’s struggling and you need to make cuts, wouldn’t you wait for people to jump ship voluntarily, or even consider laying off your lowest-performing employees?

    When companies jump to buyouts, it’s usually a last-ditch effort before they’re forced to make large-scale layoffs.

    Taking the Lead

    Here’s the thing – this is a SUPER unconventional approach. Most people would never dream of approaching their bosses about being open to a buyout, but hear me out.

    Make it clear that you are exploring options, not volunteering to be fired first or saying that you hate your job. Let your boss know you are being proactive and thinking about the needs of you and your family. Your boss may be impressed that you’re looking at things from a logical perspective and are willing to start the conversation. A CEO would surely rather work with a proactive employee than someone avoiding the realities of the economic situation.

    I would imagine many employers would be somewhat understanding, especially during times like this.

    The advantage here is that you are in the driver’s seat, and you don’t have a ton to lose. Worst-case scenario, your employer isn’t interested, and you’re the first to go when layoffs roll around. That may have happened anyway.

    So What’s Best?

    There really is no right answer, because it depends on your relationship with your company, how you feel about your job, and a bunch of other factors.

    If you’re single, or you have a spouse who contributes to the household income, and you really don’t care for your job all that much, it might be the right move. It’s worth the conversation (I’ll cover more on HOW below).

    But, if you’re the only provider, don’t have other career prospects, and don’t have a better plan, then it’s probably best to ride it out and see what happens.

    What Things Should You Consider Before Taking a Buyout?

    If you determine that a buyout is a possibility, there are several things you’ll want to consider before doing anything permanent.

    Do You Have a Better Plan?

    If you’re taking a buyout out of fear, then it’s probably the wrong reason. That means you’re looking at the short-term but don’t have a long-term plan. You might suddenly find yourself in a situation where your buyout money has ended and you can’t get unemployment.

    But if you’re considering starting a business, going back to school, going to work for a competitor (make sure your buyout agreement doesn’t forbid this), or changing careers, it might be a worthwhile option.

    Whatever it is, make sure your plan is laid out and at least somewhat solid before you take a buyout. I worked with a guy who left teaching to get into finance. At 30 he switched careers, using a buyout at his teaching job to help ease the transition.

    He knew he’d start at the bottom with the rest of us (I was right out of college), but his plan was to change career paths, and he knew what he wanted. This is a great example of having a better plan.

    Understand Position and Interest

    Once you reach the point of a buyout discussion, you have to come to terms with the fact your employer either doesn’t want you or is perfectly fine allowing you to leave. It sounds silly, but that pride pill might be a tough one to swallow.

    And in most cases, your state is going to consider your employment at-will, which means your organization can cut you loose without a defined reason and not be obligated to pay you any severance. Essentially – your employment is not guaranteed in any way.

    Now obviously this is different if you’re on a contract, but for the sake of this article, I’ll assume you’re not. Even more, there’s a strong chance you signed documentation confirming that you understood and agreed to this when they hired you.

    So what does this all have to do with a buyout? Put it this way–if they wanted to fire you by now, they could have. But if you’ve reached the point of a buyout discussion, they’re open to ending your time with them in a mutually-beneficial manner.

    Remember that by firing you, although they’re allowed to, a company still opens themselves up to risk that you may sue them for whatever reason. But a buyout agreement almost ALWAYS waives that ability–meaning if you take the cash, you can’t sue. And a company will most likely view the upfront cost of buying you out a lot better than dealing with legal issues later. The point here is to understand where the company stands and what their interest is in the matter.

    Financial Considerations

    For most people, it’s not always clear how you’ll be compensated with a buyout. Unless you’re a highly-paid executive, you’re not important enough for your company to worry about that upfront. So this puts things up for negotiations.

    This is often where companies have some level of discretion. But it’s also where you may have the most opportunity for negotiation. Most companies will offer about two weeks’ worth of pay for every year you’ve been with the company.

    Now that’s not a “rule” but it’s a common starting point. Two weeks worth of severance is commonly used for layoffs. If you’re negotiating a buyout, you’ll want more.

    So again, I think this an opportunity for you to state your case for more money.

    The other financial consideration you’ll need to think through is healthcare. Even if you’re getting paid for six months per the buyout agreement, what happens with your healthcare? Will that be covered as well, or will you need to buy your own? If you aren’t covered, you’ll want to go on your state’s exchange to understand the costs. (You have 60 days from losing your company sponsored healthcare to sign up on the exchange–this is considered a life qualifying event that allows for enrollment outside of the open enrollment period).

    A good estimate of how much your benefits are worth (including healthcare) is 25% of your salary. That’s a SUPER rough estimate on how much it costs employers to pay for your benefits–so you might use that as a point for negotiation.

    You’ll also want to think through HOW the money will be dispersed. If it comes in one, lump-sum check, will you be taxed at a higher rate? Or will it be spread out over the course of the buyout terms?

    You can also negotiate to have the dollar amount “grossed-up,” which means your company will up the dollar amount of their payout so the net amount equals what you agreed upon.

    For example, if you agreed to a $50,000 buyout and that’s taxed at 25%, you’re not getting the full $50,000. But if they “gross it up,” they might pay you 25% above that $50,000, so when it’s taxed, you end up with $50,000. I’m using rough math, but you get the picture.

    Your Future Career Prospects

    Think about your career prospects when negotiating a buyout, especially for your resume.

    For example, if you take a buyout and have a three-month gap in employment, how will that look on your resume? Can you explain it in an appropriate way?

    Or what if you end up not finding the job you’re looking for, and it looks as if you left your company for a demotion–that might raise some red flags.

    Think about the industry you want to work in and whether things like an employment gap or something looking like a demotion will have a large impact on you.

    How to Start Buyout Talks

    So you don’t go burning any bridges, here are a few things to think about when you are ready to approach the discussion:

    1. Find out where the company is headed. This might be a conversation with your direct boss or a “skip-level” meeting with your boss’ boss. Any way you can, try to get a pulse on where the company is headed to determine if it’s the right time for a buyout discussion.
    2. Keep it informal. Don’t put anything in writing, just ask your boss to have an informal conversation and mention that you’d be open to considering a buyout. See how they react before you push any further.
    3. Be logical with your reasoning. Talk about how you need to take care of your family, not that you’re freaking out everyone is going to lose their jobs. Be pragmatic and poised.
    4. Leave it open for further discussion. Don’t push the topic too hard. You want to merely express openness and nothing more. Wait until something more official makes its way to the table. If your employer isn’t offering it, you are basically negotiating, so you don’t want to show all your cards on the first hand.

    Final Thoughts: Is a Buyout Worth it?

    Look – I get that what I’m talking about might sound crazy, especially during a time when people are losing their jobs. But that’s the exact reason you should be considering a buyout.

    No – it doesn’t make sense for everyone. But only you can determine that.

    For those who aren’t totally satisfied with their jobs and they can afford to take a little time away (depending on the size and length of the buyout), it might be the exact thing you need.

    A relative of mine took a buyout a few years ago. She took some time off, took a lower-stress part-time job, then eventually went back to the company in a new role, making more money.

    It ended up working out very well.

    Remember that we aren’t in normal times right now. This isn’t a typical economic situation, so you have to adjust your thinking a bit. In fact, I may not have even written this article a year or two ago.

    But since we’re in the midst of a pandemic, the rules have changed and it’s time to at least consider your options.

    How Is Buyout Calculated?

    1. How is notice period buy out calculated?
    2. What does a buyout mean for employees?
    3. Does Wipro have buyout option?
    4. How do you calculate a 90 day notice period?
    5. How much is an employee buyout?
    6. What is buyout option?
    7. Is notice period pay tax free?
    8. How does buyout option work?
    9. Is buyout amount taxable?
    10. Does your company have a buyout option?
    11. How do I buy notice period in TCS?
    12. How is buyout amount calculated?
    13. What is buyout amount?
    14. Is it buyout or buy out?
    15. When should you take a buyout?
    16. What is the notice period in India?

    How is notice period buy out calculated?

    Generally Notice buyout is calculated on Basic salary.

    But before go for conclusion first read contract letter/ appointment letter thoroughly.

    So if they have not mentioned anything then that amount will calculate on Basic salary..

    What does a buyout mean for employees?

    An employee buyout (EBO) is when an employer offers select employees a voluntary severance package. The package usually includes benefits and pay for a specified period of time. … An employee buyout (EBO) may also refer to a restructuring strategy in which employees buy a majority stake in their own firm.

    How do you calculate a 90 day notice period?

    90 day notice is calculated the same way everywhere. 90 calendar days from the day you submit your resignation including weekends and holidays. If you already sent an email expressing your intent to resign, then that date will be considering.

    How much is an employee buyout?

    Buyouts range from four weeks pay plus another paid week for every year worked to the $150,000 that some auto companies have paid their union workers to leave. They can also include benefits such as extended health care insurance and educational and job search assistance.

    What is buyout option?

    Buy out option means whether your notice period can be bought out or not. … When that employee is joining another company, and the company needs him/her to join immediately, they often buy out the notice period by paying one month’s salary of the employee to the previous company.

    Is notice period pay tax free?

    Yes. Any payment made by your employer under your contract of employment will be taxable as earnings and this includes any pay received during the notice period and any notice pay received as a lump sum, known as a payment in lieu of notice (PILON).

    How does buyout option work?

    What is the “notice period buyout option”? Otherwise known as salary in lieu of notice, this is where your hiring organization will “buyout” the employee from his old employer by making a certain payment for the notice period not served .

    Is buyout amount taxable?

    The amount paid by you as notice pay recovery should be considered as the amount of salary which has not become due to you. You may rely in this regard on the decision of CIT vs. Mehar Singh Sampuran Singh Chawla 90 ITR 219. You should claim that on the basis of the said decision the notice pay is not taxable.

    Does your company have a buyout option?

    Mostly in cases where a company need a specific skill set for an employee on an urgent basis, they usually buy out their notice period so that the employee can join them at the earliest. By buy out it means they pay the other company on behalf of the employee his/her one month current salary.

    How do I buy notice period in TCS?

    Buyout option in TCS starts with a talk to your manager followed by an official email dropped to your HR and your management. Then starts the notice period and talk to your HR to finalize on the bond amount and the period for which you wish to serve.

    How is buyout amount calculated?

    Notice buyout cost is totally depends on the period (total days) of notice as the deduction will be totally based on your total number of days under notice and accordingly you will be required to pay a sum equivalent to total no. of notice days base salary in lieu of such notice period.

    What is buyout amount?

    Buyout Amount means the buyout amount determined as at a specified date and calculated in the manner previously agreed in writing between the Purchaser and New Lorus.

    Is it buyout or buy out?

    In order to access this advantage, you may negotiate with the competing company for usage or propose a merger of both companies; however, the often simplest and easiest way is by using today’s word – buyout. …

    When should you take a buyout?

    But if you are still four, five, or more years away from retirement, it can be a tougher decision. Mid-career workers might want to check out other job prospects before agreeing to an early-retirement buyout. You should also consider the long-term viability of your current employer.

    What is the notice period in Germany?

    A 30 to 90-day notice period applies in order to terminate ‘workmen’ – that is, employees whose role is not primarily supervisory, administrative or managerial) for convenience, with 15 days’ pay due for every year worked.