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Archive for Employee Relocation

The scope of laws about employee relocation is as wide as the scope of subjects that are involved in any move. Most of these laws are aimed at immigration, but also figure heavily in the realm of taxation, as some of the costs of relocation are exempt from taxation in some countries.

Many of these laws are convoluted enough to require the help of a professional, and that’s where relocation professional.

First and foremost among the laws about employee relocation are immigration laws and regulations. The constantly changing rule that govern just who is eligible for work and travel visas. These tend to differer by what job one does when he or she arrives, as well as the country of origin.

Often the company doing the hiring needs to prove that there are no qualified applicants available domestically.

Other laws about employee relocation pertain to real estate and just what sort of taxes you’ll be responsible for when you move out. A cunning real-estate agent, working in tandem with a relocation specialist, can save a prospective relocating employee many thousands of dollars. When relocation experts take the exams that certify them, there are quite a few questions pertaining to the tax code.

As such, if the relocation professional isn’t actually an attorney, there is a very good chance they keep one nearby and are well aware of when they should refer you.

Among the less well noted (though no less important) laws about employee relocation, are the very complicated child and family statutes that can, quite suddenly, apply to those who move to the US from other countries. There may be restrictions on the public services that your spouse and children are allowed to use, necessitating some more expensive options, such as a private school.

Even those moving from state to state in the US are subject to laws about employee relocation that are concerned with child support and wage garnishing. A good relocation company will be able to take care of or arrange for much of the legal requirements to alert the proper authorities to your current whereabouts.

Among the laws about employee relocation that are perhaps the easiest to fathom are those that pertain to the extent a background check can profile a prospective, relocated employee.

While it is certainly prudent for a company to investigate new hires, just like in a job, there are questions that simply cannot be directly asked such as sexual orientation and other personal issues.

Your relocation specialist is likely to have a whole staff of specialists, including lawyers, ready to assist you with any aspect of relocation that comes up.
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Jun
10

Mitigating the Cost of Employee Relocation Expenses

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Especially when competing for top level executives, the cost of employee relocation expenses can seem excessive. However, there are ways around getting your company involved in a relocation package that it will never recover in executive talent without seeming cheap.

Technical employees are rarely granted such extravagant relocation packages, so there is usually little if anything that can be reasonably trimmed from such packages.

For starters, there are quite a few real estate related expenses that have proven very expensive indeed for some companies. For instance, it became popular in the 1980s to purchase a new employee’s old home if it wasn’t selling. These sorts of employee relocation expenses that involve the company in becoming the owner of property is not only very spendy, but can also look a bit shady when watchdogs scrutinize the amount paid for it.

It’s next to impossible grant your employee a fair price and not be accused of paying too much. Anyhow, if it’s your business to make paper envelopes, why should the company invest in an Italian Villa?

Other employee relocation expenses are less straightforward. For instance, should your company give a moving stipend, or grant an expense account that needs to be clearly documented? While it may seem cumbersome to begin with expense accounts immediately, professional relocation companies can handle all the particulars.

On the other hand, the family of an executive may not be as judicious with such an account or afraid to use it, just in case a legitimate moving expense isn’t covered. Clearly, hashing such particulars of employee relocation expenses out first is key.

Before your company makes any offers to cover over-generous employee relocation expenses, it might just do some good to talk with the employee in question and find out what her or his personal circumstances are. For instance, if he or she is single, even a very nice condo in a downtown area can be less expensive than a 3-bedroom home in the suburbs with the use of a company car.

In fact, preferentially locating your employees near the work site just might save you the expense of paying for and garaging a company car.

It is a delicate balance, finding the right amount to spend on employee relocation expenses, but if there is any sort of trick involved, it is to offer little and agree to much. You certainly don’t want there to be any snafus along the way that could sour the relationship immediately. When given the choice to offer fewer benefits and use a more highly recommended relocation services company to oversee the process, always go for quality rather than quantity.

You and your new employee will benefit from the attention to detail that makes relocation go smoothly.
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