What is Relocation Agreement Drafting?
A relocation agreement is a legal contract between an employee and employer. It clarifies how to navigate aspects of a job relocation, in which the employer will agree to compensate the employee for relocating.
Read the rest of this article to explore key terms that should be included in a relocation agreement, how to draft it accurately, and why you should consider working with a qualified lawyer for assistance with the process.
What are Key Terms in a Relocation Agreement?
A relocation agreement usually includes the following essentials:
- Parties. Both parties’ full legal names and addresses must be stated.
- Financial terms. This outlines if the company will pay for the employee’s relocation costs, how they can be reimbursed, and any additional costs, such as for travel expenses.
- Deadline. This specifies the date by when the employee has to have moved and will start working at the new location.
- Location. The new job location must be clearly defined in the agreement.
- Purpose. For clarity, the agreement can explain the reason for the move and if it’s temporary or permanent.
- Benefits. The agreement should explain the benefits of relocation for parties involved.
- Cancellation. It could happen that the job relocation is cancelled, such as if the employee withdraws or the employer cancels the move. The agreement should explain what happens in these situations.
What are Tips for Drafting a Relocation Agreement?
When drafting terms in a relocation agreement, there are things to consider beyond the key terms.
Explain all Expenses
Relocation expenses are a crucial section to include in the agreement. These not only
include moving and travel costs, but also temporary housing and storage expenses. The relocation agreement should specify what costs will be covered by the company.
Include Reimbursement Information
In the agreement, you should state which expenses will be approved for reimbursement and how claims must be submitted. Be specific. Explain what documents employees must submit, such as invoices, and how long they have in which to submit reimbursement claims after relocation or after they’ve paid the expenses.
Address the Relocation Salary
It’s important to specify if and how the employee’s salary will change because of the move. For example, if the move is tied to a work promotion, it follows that there will be an increased salary, which must be clearly stated.
Consider Cancellations
It’s important to think about future situations that could occur, such as if the employee withdraws from the move or the employer changes their mind about relocating. To prevent disputes, the agreement must state which party will handle the associated expenses.
Define Parties’ Responsibilities
Both the employee’s and employer’s responsibilities must be clearly defined in the relocation agreement so there’s no confusion. The employee’s obligation might include submitting required documents, complying with company policies, and securing temporary housing. By comparison, an employer’s responsibilities might be offering relocation assistance.
Mention Dependents and Family
If applicable, your agreement should include information about how relocation costs will be handled for the employee’s spouse/partner, children, and other family members. This serves to clarify all aspects of the relocation and prevent misunderstandings that could end up in disputes.
How Does a Lawyer Help You with Relocation Agreement Drafting?
If you’re worried about drafting your relocation agreement, you should hire a lawyer to write it for consistency and clarity. A lawyer will do much more than simply drafting the agreement. They’ll:
- Define the relocation scope. This includes evaluating the relocation date and if reporting arrangements are reasonable.
- Establishing financial arrangements, such as employee relocation benefits and reimbursement processes.
- Fairly allocating parties’ roles and duties so that the agreement isn’t one-sided.
- Including risk-management policies to protect parties, such as repayment obligations if the employee leaves within a specific period.
- Complying with all relevant laws and regulations to make the relocation agreement legally enforceable and valid.
- Negotiating with the other party, such as the employer, if any terms aren’t favorable.
- Reviewing a relocation agreement you’ve drafted to check that it’s legally sound, fair to both parties, and clear to prevent misinterpretations.
Where to Find a Lawyer for Relocation Agreement Drafting
When you decide to hire a lawyer to draft your relocation agreement, you might wonder where to find one who can help you. Ideally, you’ll want a lawyer who is reputable, has expertise in employment issues, and has contract-drafting experience.
Online legal platforms such as ContractsCounsel make it easy to find a suitable lawyer in your location. ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. From the comfort of your home, you’ll connect with a lawyer who can draft a legal and clear agreement.
To request that a lawyer on the ContractsCounsel platform drafts your relocation agreement, follow these simple steps:
- Go to the ContractsCounsel marketplace, where you can post your project for free. You can mention a few details to match with the best lawyers, such as why you’re relocating and what benefits are offered to the employee.
- Receive lawyer bids on the platform. Instead of searching for a lawyer, you’ll receive multiple bids from lawyers directly on the platform.
- Once you receive multiple lawyer bids, you can review the lawyers’ profiles to select the most suitable one. ContractsCounsel offers extensive lawyer data, such as the lawyers’ location, credentials, client ratings for previous projects, years of experience, and field of expertise.
- Connect with a lawyer and hire them to draft your relocation agreement for a flat fee.
