Is Our Employee Entitled to Relocation Costs for a Temporary Overseas Assignment?

Relocation Entitlement for Temporary Overseas Assignment

One Business Development guy is being sent to Kenya for 6 months or more. He was residing with his family in Gurgaon. Due to this movement, he has shifted his family to his hometown. This guy is being provided accommodation and DA in Kenya. Now he is asking for relocation costs for shifting his family. Is he entitled to a relocation amount? In the past, we have given relocation amounts to employees who have been permanently shifted from one location to another within India. Does the above case come under the purview of a relocation claim?

Regards,
HRbuff

Relocation Cost Reimbursements

Relocation cost reimbursements are given for any movement by the employees. However, this usually applies to postings of more than a specific duration (which varies from company to company) and is usually applicable only to permanent/long-term postings.

For short-duration postings (typically a few months), the employee is usually given single accommodation (NOT family accommodation), and they are NOT permitted to relocate their families AT COMPANY COST.

If the trend of posting employees overseas is expected to rise in your company, it is suggested to make a clear-cut policy on overseas relocation right now. If not, you could land into problems later when everyone can take precedence and make comparisons with earlier cases to get a better deal for themselves – after all, that's human nature.

Regards,
TS

In addition to TS's suggestion, the individual who was sent abroad for 6 months or more may not leave his family alone at the location of his last posting unless there are unavoidable circumstances such as children's education or a spouse's employment, etc. Naturally, he will want to relocate his family to his hometown or another location as he sees fit. A period of 6 months or longer is considered long-term dislocation. While you may have offered single accommodation in Kenya or family accommodation, the employee may not wish to move his family overseas. In such a situation, his request for relocation expenses for his family and transportation costs for his belongings to his hometown is reasonable.

Regards,
Pon

To my knowledge, first of all, before relocating an employee, your company should give proper guidance to your employee on the relocation claim; otherwise, there would be a problem as you said. I don't know whether you guys have discussed the following matters with your employee...

1. About your company's policy on relocation if you have one.
2. Any other alternative/guidelines for relocation claims if you don't have any such policy.
3. Additional monetary/non-monetary benefits for an employee who is going to be engaged in an overseas assignment.
4. Eligibility for relocation claims, etc.

If you did not discuss the above-mentioned matters with your employee, then you are liable to pay his claim because he went there for your company, not for his personal matters. He should have been told that relocation claims would not be entertained as he would receive accommodation and daily allowance in Kenya. Seniors can correct me if I am wrong...

Thanks.
M. Kannan