If an employee is transferred to work in another locality, the employer must reimburse the expenses related to the relocation, according to the Central Interregional Department of the State Labour Service. Reimbursable items include travel costs, transportation of belongings, per diem, a one‑off cash allowance and continued payment of wages for the relocation period.
Which expenses the employer reimburses
An employee is entitled to reimbursement of the following expenses when transferred to work in another locality:
- travel costs;
- transportation of belongings;
- per diem;
- one‑off cash allowance;
- continued payment of wages during the relocation.
Per diem refers to a daily payment to cover expenses related to the relocation, while a one‑off cash allowance is a single payment to cover relocation costs. Continued payment of wages means payment of the employee’s salary for the period of the relocation, as provided for in a transfer.
Reimbursement for family members and timing of the relocation
Relocation expenses may be reimbursed not only to the employee but also to members of their family: spouse, children, and the parents of the spouse, provided they are dependants and live with them. The cost of travel for family members, transportation of their property and the one‑off allowance is reimbursed if they relocate within one year from the date of actual receipt of the housing.
If an employee takes up work in another locality by prior agreement, expenses may be reimbursed by mutual consent; in that case the payment of a one‑off allowance can be made by agreement between the parties. When an employee relocates to work for a period of up to one year while the family remains at the previous residence, and subject to agreement between the parties, the employer may instead compensate for temporary accommodation costs; such payment may not exceed 50% of the per diem.
To substantiate expenses, employees are advised to keep documents proving payment for travel and the transportation of belongings.
