Samvedan
Consultancy_hr & Ir

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I would request seniors to please suggest me, How to negotiate for the compensation for relocation (to Mumbai from Pune). i mean how and what to ask for metro relocation compensation????
I request you to please respond & help me in this regard ASAP

Hello,

Relocating from Pune to Mumbai needs to be handled carefully. The critical problems would basically be:

1) Housing.

2) Commuting to work in terms of cost, time and hardship.

You need to be compensated for higher costs involved at least on these two counts and the way to go about this tasks would be generally as under.

Cost of housing: The difference between your HRA at Pune and what you may have to pay for a similar accommodation at Mumbai-even if you ignore the convenience and class of the locality at Pune. The issues could be tricky. You may have been able to rent a house and upon transfer you may have to compromise to a "Paying Guest" arrangement. The new house at Mumbai or the PG arrangement may (and generally will) be far from place of work. If you are a bachealor it is one matter and if you are a family man the question may be more serious. There are many dimensions to this problem.

Commuting to place of work: In Mumbai you expenses on this count will, as a rule be substantially higher and you need to be compensated for that.

Normally all good employers will compensate you for the extra expenses that you may have to incur because of the transfer. The transfer may also involve moving the entire household. For a family man school admissions, higher fees etc. will also be problems.

But the employer could rely on the "fine print" of the terms and conditions of employment where you may have agreed to accept the transfer without any extra compensation.

Actual negotiations will depend upon the facts of the case bu general principle would be to expect that extra costs would be reimbursed by the employer. If the job responsibilites would remain same/similar, you may not be able to expext revision of pay on that count.

Having provided a starting point, if you raise more specific questions, you will get more substantive answers.

Regards

samvedan

January 19, 2008

Thanks a zillion for the reply....
to be more specific my role in the organization has increased.I would be completing my six months in the organization this month with new responsibilities and a diversified role now.what i have heard from other employees in the organization is that they pay 1.5 lk as a hardship allowance. What i feel is 1.5 Lk is very less . so what should i demand that the company would also agree upon
Regards
Gurpreet

Hello,

The hardship Allowance that the company pays would be paid to any employee who undergoed this hardship, and the recognition for trusting you to perform an enlarged role with greater responsibilities and higher accountability are two mutually exclusive things.

I donot know if you are a family person with problems of schooling of children alongwith problems of housing or if you are a single person. The yardsticks the company would apply would differ. Even the hardship allowance may differ according to your level in the hierarchy and/or age and/or if yu are single or a family person. Taking all this into consideration 1.5L p.a. may or may not be adequate. I think the range, in present times should be aroundRs. 2L.

Kindly do not let figure confuse the issue of "cost of job enlargement" on which I may not be able to comment (in the absence of direct knowledge of your situation) But conceptuallt these two must be treated differently-whatever the money tag attached to each.

I hope this analysis helps!

Regards

samvedan

January 21, 2008

I really appreciate your concern to reply me.....
Im single at am at regional sales trainer i handle whole of west 1 (maharashtra & goa) earlier i was handling only insurance teams but now i would handle Branches also
I shifted to Pune 6months back from Nagpur and now they have asked me to move to mumbai

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