24th Jan 2017 at 10:01 am #18666
I have a scenario, and would appreciate some input and guidance.
Herewith the scenario:
1. Employer expands and request a Technician to work for a year in another province.
2. Note: Technician lives by parents (so no rent/groceries)
3. What legal obligation does the Company have in sending this Technician to another province for a year?
4. Must the Company pay rent, water/lights, all monthly expenses (groceries).
Is there a minimum living-out allowance that covers rent, groceries, water and lights? Any guidance here will be appreciated.
24th Jan 2017 at 2:21 pm #18674Des SquireParticipant
A company in the first place cannot compel the employee to transfer. After that there are no legal obligations on the employer other than the need to discuss the reasons with the employee and try to seek agreement.
Negotiation on the proposed transfer would need to be discussed and the terms and conditions would have to be agreed to by the employee.
It is standard practice to pay re-location expenses to the employee and possibly a settling in allowance for a temporary period only. The company could if desired agree to pay a rent allowance but there is no obligation to do so.
The terms and conditions agreed to by the employee would be final – however the employee is not obligated to accept the transfer.
24th Jan 2017 at 4:00 pm #18673
Hi Des, thank you so much. You see, the employee opted to move down to Durban for the Employer. So there is a mutual agreement in the reason behind this transfer. I could not find anything where there is a legal financial obligation from the Company’s side of what needs to be paid which is compulsory. I am sure that the company will cover the rental part, but what happens with normal daily living expenses, is this for the employee or must the employer cover this as well?
24th Jan 2017 at 5:05 pm #18672sylvia hammondKeymaster
I agree with Des that the changes to terms and conditions should be negotiated and agreed. Changes to terms and conditions cannot be made unilaterally and must be agreed and committed to writing and signed by both parties.
However, I would suggest that this is one of those times in an employment relationship where one hopes for maturity from both parties. That the company has an operational requirement, which in the long term could benefit the employee. Not every company is growing these days – being employed by one is a real benefit. In the long term the employee can only benefit by the additional experience that is being offered, and be seen as a valuable and knowledgeable employee.
From the employer side, one would hope that they have an experienced professional HR person, who could manage the the interaction with the employee. The HR person should be pointing out to the Executive that there is a need to recognise that they cannot unilaterally disperse employees at will, and secondly that the employee is being financially compromised by the move. Therefore, there is a need for the employer to offer a reasonable compensation to the employee.
Deciding upon the level of the financial compensation will require some disclosure by the employee, and that should be respected by the employer as privileged and confidential information.
Some give and take is required by both parties – and the outcome should then be committed to writing and signed. An experienced HR person should have no problem in accomplishing this transaction.
I’m happy for you to quote my comments to the employer if necessary. I’m pretty sure Des would feel the same.
24th Jan 2017 at 5:10 pm #18671
24th Jan 2017 at 5:14 pm #18670sylvia hammondKeymaster
No there are no specific sections of the Basic Conditions that deal with transfers – they are usually a policy of the particular company. Although very large multi-nationals tend to have similar standard policies, growing companies generally don’t have – and won’t have, until they start expanding.
24th Jan 2017 at 5:21 pm #18669
25th Jan 2017 at 6:22 am #18668Des SquireParticipant
25th Jan 2017 at 6:41 am #18667
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