A relocation policy is a document created by a company which mentions its policy on relocation of an employee and the compensation to be paid to him as part of the relocation process. When a new employee is hired by a company or a current employee is asked to move to a different city, he is paid a certain amount in order to compensate for the expenses of relocation. Every company has a different policy, some may pay the entire relocation costs including air fares and moving costs, while others may pay only a part of the expenses.
The relocation policy is usually mentioned by the company along with the offer letter and so the employee must read it carefully before he signs the offer letter and agrees to the term of the relocation policy. The relocation policy of a company can be governed by the laws of the land or the company’s own personal policy to deal with such a situation.
[Also Read: Relocation Agreement]
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