Requiring employees to transfer to a different geographic location against their will exposes your organization to risk of liability for constructive dismissal. (Click here for an HR Briefing on constructive dismissal risks and how to control them.) Having the employee sign a relocation agreement can help you manage the risk, not to mention keep the employee from leaving the organization. Here’s a Model Agreement you can adapt for your own situation.
MODEL EMPLOYEE RELOCATION LETTER AGREEMENT
Organization Letterhead [Don’t send by email]
Personal & Confidential
August 31, 2018
[Employee name and address]
We are sending you this Letter to explain, document and confirm the terms of your relocation from ABC Company’s office in Calgary (“ABC Calgary”) to ABC Company’s office in Vancouver (“ABC Vancouver”). The key point we want to make is that the terms of your employment contract with ABC Company, dated [list date] that you executed before the relocation [“Your Employment Contract”] will remain in effect after the relocation, except where otherwise indicated in this Letter.
After the relocation, your job title will change from [insert current job title] to [insert new job title].
The relocation will not in any way reduce or alter your fundamental duty as an ABC Company to devote your full time, attention and skill to your job responsibilities and to act in good faith and with due diligence in the performance of your duties in accordance with the ABC Company HR Handbook and Code of Conduct. However, your specific job responsibilities at ABC Vancouver will be somewhat different from your current responsibilities with ABC Calgary, as described in Your Employment Contract, including [briefly describe changes in job responsibilities]. In addition, after the relocation, you will be required to report to [list name of manager or supervisor].
You will remain at ABC Vancouver for [list intended duration of relocation or state that it’s permanent].
Compensation & Benefits
The compensation, pension, health benefits, bonus, vacation, leave and other entitlements currently provided to you under Your Employment Contract will remain the same after and through the duration of the relocation with the following exceptions: [briefly describe any changes in salary, benefits and compensation]
ABC Company will provide you the following allowances to defray the costs you incur in relocating from ABC Calgary to ABC Vancouver:
- a) An accommodations allowance of up to $X covering the costs of temporary accommodations for up to 6 weeks after your arrival in Vancouver, 50% of which will be payable upon your arrival in Vancouver and the balance after the 6-week period ends.
- b) A resettlement allowance of $X.
- c) A travel and moving expenses allowance covering the costs of a one-way business class airfare from Calgary to Vancouver and reasonable moving expenses based on the market rates to move your furniture and possessions from Calgary to Vancouver to be determined by estimates of a sample of 3 moving companies selected by ABC Company.
If you have any questions, comments, concerns or complaints about these terms, please notify the ABC Company HR Director immediately. By signing this Letter, you indicate acceptance of its terms.
Signed: _____________________________ Date: _________________________