Employee Relocation Policy

Outline the approach and procedure to be followed while relocating an employee for business reasons.

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Employee Relocation Policy-undefined

There are occasions when the company may need some of its personnel to be relocated to one of its branches or group companies, either temporarily or permanently, due to business demands. In some cases, employees too may request for a transfer to one of its locations due to personal reasons. This policy addresses the procedures and process to be followed in either case.

This policy template is available for download in Word format.

With this Employee Relocation Policy template, you can:

  • Ensure no points are missed while discussing relocation plans with an employee
  • Communicate company’s strategy to impacted employees clearly on such relocation
  • Ensure compensation details are shared for awareness of the relocated employees

In just a few minutes, you will be able to create an employee relocation policy. This policy covers rules to be followed with respect to:

  • The need for relocating employees and its advantages
  • The role and expectations of the employee
  • Guidelines associated with relocation, reimbursements, relocation assistance, etc.
  • Rules for employee-requested relocation

Employee Relocation Policy


< Company Name > realises that there could be a requirement for resources at its various locations or branches due to business needs. It may need to transfer or relocate some of its employees to such locations or branches for support or to manage a function in order to optimise available skills. This policy defines the rules and guidelines for such relocation of employees.

Scope & Applicability

This policy applies to all employees who are required by the Company to relocate from their current posting to any of their locations or branches in order to support that business. Relocation can happen within the same city / town or outside. Relocation could be company-sponsored or employee-requested.

This policy is owned by < Name of the Person > and reachable @ < Contact Number > and < email address >

Policy / Process

Types of Relocation

The different types of relocation are given below.

Relocation Due to Promotion

On being promoted, an employee may be relocated to some other place to take up new / additional responsibilities.

Adaptability Relocation

With an aim to create a strong talent pool and succession plan, relocation shall be aimed at increasing the adaptability of an employee by assigning him / her a job responsibility that would be different or higher than the present job. This will enable the employee to gather varied and all-round job knowledge and experience.

Cross-function / Cross-team Relocations

Relocation of a person to a different function or a group company would depend on his / her academic qualification, knowledge and relevant experience. Respective HR partners shall interview the employee for the new role before being relocated.

On-request Relocations

Such relocation requests from employees shall be entertained only in case the unit has a requirement at the location, and the employee fulfills the criteria of the requirement.


Relocation on deputation (or Secondment) shall be permitted for a special task / assignment for a given minimum to a maximum period, as the situation demands. After the assignment is completed, the employee has to report back to the actual place of posting.


The following are the guidelines in the event of a relocation:

  • Depending on the type of skills required by a function/department, the Hiring Manager will discuss the manpower requirement with HR.
  • HR will identify internal sources appropriate for the role and discuss this with the Hiring Manager.
  • Upon approval, the Hiring Manager, along with HR, will discuss with the employee the nature of the job and business purpose of such a relocation and obtain employee's formal consent.
  • The Hiring Manager will discuss, with the employee’s current Reporting Manager, a detailed transition plan on the nature of work, transfer dates, timings, training, handover, etc., along with HR of the respective units.
  • At the time of relocation, the employee handing over shall ensure proper documentation and knowledge transfer. He/She shall ensure that all documents, files, literature and Company property is handed over to the incumbent. In the event the incumbent is not available, he/she should hand over the same to the Reporting Manager. The incumbent will acknowledge the receipt of these items during take over.
  • ‘No dues’ and ‘Last salary drawn’ certificates shall be issued by the relieving office to ensure seamless continuity in the new entity of a group company.
  • If the relocation is from one city to another necessitates travel and shifting from one residence to another with household effects, a maximum period of 3 working days' transit leave shall be allowed.
  • The relocated employee, along with family, will be eligible to stay at a company-approved hotel for a period of 2 weeks from the date of arrival at the new location.
  • Company Admin will help in house-hunting and schools/colleges for children, during which period the employee is allowed time off to visit these places in order to finalise them.
  • If relocation is within the city limits, no joining time shall be permissible, and the employee shall report to the new location on the next working day.
  • Employees cannot reject a Company-initiated relocation as such transfers are a part of the employment contract, unless there are medical issues with the employee.
  • The relocation order shall be duly signed by the HR and marked to all concerned functions at both the current and future units for further action.
  • In cases where the relocation is from one entity to another within the Group Company, HRs from both entities will ensure service continuity and other benefits to the employee, as appropriate.

Procedure for Employee-Initiated Relocation

An employee desirous of moving to another location must approach their Reporting Manager first with the request and proper justification. The Reporting Manager will discuss the same with the Head of Department and HR for approval.

Company reserves the right to approve / reject such a request based on the requirement and necessity at that location.

If the relocation is employee-initiated, then allowances are not applicable with an exception that if the relocation is at a different city, a 3-day transit leave is permitted.

Relocation Benefits

Re-settlement Advance

To meet the contingent expenses of settling in a new place, a re-settlement advance of a maximum of one month's gross salary will be allowed in case of permanent relocation. The same can be recovered in <6 monthly> instalments from the employee’s salary.

Traveling Allowance

The travel cost to the new location for self and family shall be reimbursed as per the travel policy of the company.

Packing, handling, loading, unloading, unpacking, tolls, taxes and transportation expenses (inclusive of portage and insurance) shall be managed by the Company as per the following eligibility:

Grade (as applicable)

Designation (as applicable> Amount (Travel, Lodging, Boarding, Local Conveyance, Taxes and Levies,

Phone, Laundry, Per Diems) < Mention Grades > < Mention Designations > < Maximum reimbursable limit >

These reimbursements shall be paid after submission of the actual bills by the employee, which should be done within 30 days of joining at the relocated place.

Deputation Allowance: This allowance is applicable for deputation on short-term relocations only. The amount of allowance to be paid will be decided by HR along with their counterpart at the relocated unit. This allowance will be paid at the relocated place or at the place of origin, as desired by the employee and as per the eligibility table given below:.

Grade (as applicable>


(as applicable> Amount (Travel, Lodging, Boarding, Local Conveyance, Relocation expenses, Taxes and Levies, Phone, Laundry, Per Diems)

< Mention Grades > < Mention Designations > < Maximum reimbursable limit >

Special Circumstance and Exception

Any Deviation from this policy has to be approved by HR. Any changes to the policy have to be approved by Legal and Compliance.

Non-compliance and Consequence

Violation of this policy is subject to disciplinary action, up to and including termination.

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This template is meant to provide general guidelines and should be used as a reference. This is not a legal document. greytHR will not assume any legal liability that may arise from the use of this template.
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