Relocation Allowance and
Excess Travel Guidelines
Human Resources
1 Introduction
These guidelines should be read in conjunction with the Relocation Allowance and Excess Travel Policy.
2 Initial Assessment of Allowance
An initial assessment of the allowance should take place involving the employee affected, the line
manager/head of department and HR advisor.
2.1
Additional Mileage
The payment of either the relocation or excess travel allowance is based on any “additional
mileage” incurred by the employee. To calculate additional mileage take the shortest possible
journey from the employee’s home to their new place of work. This should be assessed by using
the AA website www.Theaa.com using the “easy maps and routes” facility. The journey distance
is calculated by entering the start and end destinations either using town names or postcodes.
This journey should then be compared to the employee’s previous journey from home to their
previous place of work using the same method. Therefore “additional mileage” equals the
difference between new journey and previous journey.
2.2
Public Transport
The cheapest method of public transport should be assessed by establishing the cost of season
tickets for travel on both bus/coach and rail/tram networks. Information can be obtained from
national rail enquiries or for local bus and rail travel in the Manchester region. The cost should
then be compared to the cost of the employee’s previous journey to work using public transport.
The cost of car parking for people using train/tram stations should also be taken into account
where appropriate and employees should be able to demonstrate that the car parking
arrangements are the cheapest option available to them. Employees will be asked to provide
evidence that they are incurring car parking fees and higher public transport costs where they
haven’t previously.
2.3
Excess Travel Calculations
Calculations for full time members of staff should be based on the number of working days per
year. This figure is based on 52 weeks a year, less annual leave, eight bank holidays and three
concessionary days multiplied by five days per week. So for example, grades 8 – 10 will have 52
weeks minus seven weeks, minus eight bank holidays and three concessionary days multiplied by
five days per week which comes to 214 days per year.
Someone in grade 6 who has 30 days holiday per year will have 52 weeks minus six weeks annual
leave, minus eight bank holidays and three concessionary days multiplied by five days per week
which comes to 219 days per year.
The examples that follow use the University’s current lower mileage rate of 25 pence per mile.
Example 1: Extra journey of 10 miles each way per day
20 miles x 25 p x 214 days per year = An Allowance of £1070 per annum or £89.17 per month.
Example 2: Extra journey of 40 miles each way per day
80 miles x 25 p x 214 days per year = An Allowance of £4,280 per annum or £356.67 per month.
Example 3: Bus Journey that costs £3 per day more than previous bus journey to work.
£3 x 214 days per year = An Allowance of £642 per annum or £53.50 per month.
Example 4: Train Journey that costs £650 per annum for the season ticket where someone used
to just drive 5 miles to work.
£650 + (214 x £3.00 per day car parking) minus (10 x 25 p x 214 (cost of 10 miles a day)) = An
Allowance of £757 per annum or £63.08 per month.
Example 5: Employee moves house six months after relocating to new location. In the six
months prior to the move, the employee has to travel 20 miles further than previously, in total an
extra 40 miles per day.
Before moving the employee will receive the additional mileage allowance of
40 miles x 25 p x 214 = £2,140 per annum or £178.33 per month.
Following the move, the employee will continue to receive the allowance for a further six months,
provided their new accommodation is in a location that still means their travelling distance is
increased. This may require a further calculation by the appropriate HR advisor.
Employees employed on fractional contracts should receive appropriate pro rata payments. For
example an employee on a 0.6 contract should receive 60% of the full monthly allowance.
If any employee in receipt of the monthly allowance is absent from work for four weeks or more, a
review of whether or not the monthly allowance should be suspended will be taken.
3 Repayment of Allowance
If an employee in receipt of any of the above payments during the year period following relocation,
leaves employment with the University, they will be required to repay the financial assistance in
proportion to the number of months worked since the relocation as follows:
Months worked
1
2
3
4
5
6
7
8
9
10
11
Amount repayable
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
5%
4 Change of Address
Any change of home address within the one-year period must be notified to the HR Department
as it may affect payment of your allowance.
5 Written Confirmation
Once the assessment of the allowance has taken place the HR advisor will write to the individual
concerned (with a copy to the line manager/head of department) confirming the allowance to be
paid along with the start and end dates. One copy of this letter should be signed by the individual
and returned to the HR Department. (A standard template letter appears in Appendix 2).
6 Notifying the Finance Department
The Finance Department should be notified of the monthly allowance to be paid along with the
start and end dates for the payment. The Head of Department’s signature will be required to
authorise any request for payment.
Appendix 1
Examples of Allowances
Total extra mileage Monthly allowance
per day
Total over year
10
20
30
40
50
60
70
80
£546.96
£1070.04
£1605
£2139.96
£2675.04
£3210
£3744.96
£4280.04*
£45.58
£89.17
£133.75
£178.33
£222.92
£267.50
£312.08
£356.67
Appendix 2
<DATE>
Dear <NAME>
RELOCATION ALLOWANCE
Further to our meeting on <DATE> I am pleased to confirm the details of the relocation allowance that you
will receive.
You will receive an allowance of £<AMOUNT> per month, paid with your salary.
Payment will commence from <START DATE> for a period of one year until <END DATE> and will be
subject to income tax and national insurance deductions, but will not be pensionable.
Or
You will receive an allowance of £<AMOUNT> per month, paid with your salary until you complete your
move, providing this is within one year of relocation. Payment will commence from <START DATE> until
you provide evidence of completing your move (upon which time the monthly allowance may need to
recalculated). If you do not move within 1 year of <START DATE> the monthly allowance will cease on
<END DATE> The monthly allowance will be subject to income tax and national insurance deductions,
but will not be pensionable.
Any change in home address during this one year period must be communicated in writing to Human
Resources to allow for a reassessment of the allowance to take place.
Please sign and return one copy of this letter to confirm your acceptance of the above details.
Yours sincerely
<HR ADVISOR>
cc <HEAD OF DEPARTMENT>
I agree to communicate any change in home address in writing to the HR Department during the one year
period for which the relocation allowance is paid, and agree that the relocation payments quoted above
will cease on the date stated. If I leave the University’s employment before the date when the allowance
is due to end, I agree that the University may deduct from my final salary a proportion of the allowance
already paid to me in accordance with the scales in the University’s Relocation Allowance procedure.
Signed .....................................................
Date ...............................
AE 8180