Relocation policy template

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This Relocation Policy provides a clear framework for supporting employees who are required or asked to relocate for work. It sets out the circumstances in which relocation support may be available, the types of assistance that may be considered and the expectations placed on employees receiving support.

Use this policy to:

  • Set clear arrangements for employee relocation
  • Define the types of relocation support that may be available
  • Provide consistency when relocation requests or requirements arise
  • Set expectations around costs, approvals and repayment arrangements
Relocation policy template
2026 Reviewed
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What's included in this template?

This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.

  • Purpose and scope of relocation support
  • Eligibility and circumstances in which assistance may be considered
  • Examples of relocation costs that may be supported
  • Approval, evidence and reimbursement arrangements
  • Employee responsibilities and expectations
  • Repayment arrangements and review of individual relocation packages
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Relocation policy

1   Overview

1.1   This policy sets out the organisation's approach to supporting employees who are required or agree to relocate for work. It is intended to provide a consistent framework for considering relocation assistance, approving eligible costs and explaining the responsibilities of employees receiving support.

1.2   Relocation support will not necessarily be available in every circumstance. Each request will be considered in light of the business requirement, the employee's circumstances, the proposed relocation and the terms of this policy.

2   Scope

2.1   This policy applies to employees who are required or asked to relocate as part of their employment or who agree to relocate in connection with a new role, workplace or other organisational requirement.

2.2   It applies to relocation support approved by the organisation and should be read alongside the employee's contract of employment, expenses policy and any individual relocation agreement.

3   General principles

3.1   Eligibility for relocation support

3.1.1   Relocation support may be considered where an employee is required or asked to move their home or primary place of residence because of a genuine business requirement. The organisation will consider the circumstances of each request and may determine the level and type of support that is appropriate.

3.1.2   Support may also be considered where an employee accepts a role that requires a significant change of location, subject to prior agreement and the organisation's normal approval arrangements.

3.2   Types of support

3.2.1   Subject to prior approval, the organisation may contribute towards reasonable relocation costs. Depending on the circumstances, this may include moving and removal costs, reasonable travel, temporary accommodation, storage, estate agent fees or other directly related expenses.

The organisation will confirm which costs are eligible before expenditure is incurred. Items that are not approved or that fall outside the

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£9.99
Specifications
Access 12 months, with updates
Length 2 pages • 699 words
Jurisdiction England, Wales, Scotland
Based on UK law, ACAS guidance
Last review 17/09/2026
Next review 17/03/2027
Delivery Instant digital delivery
Formats .doc · .txt · email

What is a relocation policy?

Relocation policy template preview

This Relocation Policy provides a structured framework for managing employee relocations where an employee is required or agrees to move location for work. It helps employers explain what support may be available, how relocation costs are approved and what employees are expected to do when receiving assistance.

Supporting employee relocation

Relocation can arise when an employee takes up a new role, moves to another workplace or is required to relocate because of organisational changes. The policy provides a consistent framework for considering appropriate support while recognising that individual circumstances and business requirements may differ.

Relocation assistance

The policy can set out the types of costs the organisation may consider, such as reasonable moving expenses, travel, temporary accommodation, estate agent costs or other agreed relocation expenses. It can also explain any limits, exclusions or approval requirements that apply.

Agreeing support

Relocation support should normally be agreed before significant costs are incurred. The policy can establish who is responsible for approving support, what evidence may be required and how employees should submit claims for reimbursement.

Employee responsibilities

Employees receiving relocation support should understand the arrangements that apply to them and keep appropriate records of eligible expenditure. They should obtain the required approval before committing to costs and provide supporting documentation when making claims.

Repayment arrangements

Where appropriate, an employer may agree that some relocation costs will need to be repaid if the employee leaves employment within an agreed period. Any repayment arrangement should be clearly explained and agreed before the relevant support is provided, with appropriate consideration of the circumstances in which repayment may apply.

Example

An employer is relocating part of its operation to a different area and asks a number of employees to consider moving to the new workplace. One employee agrees to relocate because they want to remain in their existing role.

HR discusses the relocation arrangements with the employee and explains the support available under the organisation's relocation policy. The employee is told which costs may be considered and which expenses require approval before they are incurred.

The employer agrees to reimburse specified reasonable relocation costs up to an agreed limit, subject to receipts and the normal approval process. The employee confirms their understanding of the arrangements before committing to the expenditure.

The employee submits the agreed expenses with the required supporting evidence. Finance processes the approved reimbursement, while HR retains a record of the agreed relocation package and any applicable repayment arrangements.

Implementation guidance

Use these best practice actions, recommended timescales and process stages to understand when and how the Relocation policy should be used, helping ensure each step is handled consistently and appropriately documented.

Step Description Responsibility Timing
1 Confirm the business reason for relocation and discuss whether the employee may be eligible for relocation support under the policy. Manager / HR Before relocation is agreed
2 Discuss the employee's circumstances, proposed relocation arrangements and the types of reasonable costs that may be supported. Manager / Employee Before costs are incurred
3 Agree the relocation package, approval requirements, spending limits and any conditions attached to the support. HR / Manager Within 5 working days of request
4 Process approved relocation expenses against the agreed arrangements and retain appropriate supporting documentation. Employee / Finance / HR As costs are incurred
5 Review the relocation arrangement and deal with any outstanding payments, changes or repayment obligations in accordance with the agreed terms. HR / Finance Within 1 month of relocation completion
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Common mistakes

Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.

  • Agreeing support informally – confirm the relocation package and applicable conditions in writing before significant costs are incurred.
  • Failing to define eligible costs – make clear which types of expenditure may be supported and whether limits apply.
  • Allowing costs without prior approval – require employees to obtain approval where the policy or individual relocation agreement requires it.
  • Applying the policy inconsistently – use consistent principles while allowing individual packages to reflect genuine differences in circumstances and business need.
  • Not keeping supporting evidence – require appropriate receipts or other evidence for expenses that are reimbursed.
  • Including unclear repayment terms – explain any repayment arrangement, including the period covered and circumstances in which repayment may apply.
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HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

Contractual terms and relocation

An employer should consider the employee's contractual terms when requiring or proposing a relocation. The contract may contain provisions dealing with the place of work or mobility, but the wording and circumstances should be considered carefully before requiring an employee to move location.

Employment Rights Act 1996

The Employment Rights Act 1996 provides the wider statutory framework for employment contracts and written employment particulars. Where a relocation changes relevant employment particulars, employers should consider whether the employee's written information and contractual documentation need to be updated. https://www.legislation.gov.uk/ukpga/1996/18/contents

Equality and discrimination

Relocation decisions and the application of relocation support should be handled without unlawful discrimination. The Equality Act 2010 protects employees from discrimination in employment, including in relation to protected characteristics. Employers should consider whether a proposed relocation or the way support is provided could disadvantage an employee because of a protected characteristic. https://www.legislation.gov.uk/ukpga/2010/15/contents

Reasonable adjustments

Where an employee has a disability, the employer should consider whether reasonable adjustments may be required in connection with a relocation or changes to the workplace. This may include considering alternative arrangements where appropriate rather than applying a relocation requirement without considering the employee's individual circumstances.

Expenses and tax treatment

Relocation payments and benefits can have tax and National Insurance implications depending on the type and amount of assistance provided and the circumstances in which it is paid. Employers should ensure that relocation payments are processed correctly and obtain appropriate payroll or tax advice where necessary. HM Revenue & Customs provides specific guidance on qualifying relocation expenses and benefits. https://www.gov.uk/tax-relief-relocation

Changes to employment arrangements

Where a relocation involves a significant change to an employee's working arrangements, employers should communicate the proposed change clearly and consider the contractual and employment law implications. Depending on the circumstances, consultation with affected employees may be appropriate before changes are implemented.

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FAQs

What is a relocation policy?

A relocation policy sets out how an employer will manage and support employees who need to move location for work. It can explain eligibility, supported costs, approval arrangements, employee responsibilities and any repayment conditions.

What relocation costs can an employer pay?

This depends on the employer's policy and the individual arrangement. Possible costs can include moving expenses, temporary accommodation, travel and certain professional or property-related costs, subject to agreed limits and any applicable tax rules.

Does an employer have to pay relocation expenses?

There is no general requirement for every employer to provide a relocation package. Whether support is available will normally depend on the employee's contract, the employer's policy and what has been agreed in the particular circumstances.

Can an employer require an employee to relocate?

This depends on the employee's contract, the wording of any mobility clause, the distance and circumstances involved and the nature of the proposed change. Employers should consider the contractual and wider employment law implications before requiring an employee to relocate.

Can relocation expenses be recovered if an employee leaves?

An employer may agree repayment terms for certain relocation support, particularly where the employee leaves within an agreed period. Any such arrangement should be clearly communicated and agreed in advance, and the employer should consider whether the proposed recovery is appropriate and lawful.

Why use HRDocBox rather than AI?

AI can produce a generic relocation policy, but HRDocBox provides structured, UK-focused HR documentation designed around practical employment processes. This policy gives employers a consistent framework for managing relocation support while allowing the organisation to define its own eligibility, approval and reimbursement arrangements.

How this content is developed and reviewed

The Relocation policy template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing expenses HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

HRDocBox has been creating practical UK HR documents since 2009.

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"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

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