1.1 Effective Date
This Directive comes into effect April 1, 2009.
1.2 Purpose and Scope
1.2.1 It is the policy of the government that in any relocation, the aim shall be to relocate an employee in the most efficient fashion, at the most reasonable cost to the public while having a minimum detrimental effect on the employee and his/her family and on departmental operations.
1.2.2 This Directive provides a personalized approach for each participant's particular needs. It has two facets:
- a policy formula that marries direct reimbursement of expenses, over which the employee has little control, and an individualized approach to benefits providing an opportunity for the employee to select what is best for him/her (within a given Fund) given his/her own family or unique circumstances; and
- a contract with a CRSP who will provide the employee with professional assistance at every step of the relocation with the view of presenting the employee with every reasonable opportunity to maximize the available benefits. This includes relocation planning, marketing assistance and destination services along with several other enhanced relocation services.
This Directive will ensure access to professional relocation services advice at every step of the employee's move. An employee makes the final decision to accept or reject professional advice provided.
1.2.3 This Directive and any limitations thereto are published as policy and not as permissive guidelines. Discretion, be it at the employee, managerial or departmental level, shall be confined to those provisions where discretion is specifically authorized.
1.2.4 Relocation expenses must be directly attributable to the relocation, and must be clearly reasonable and justifiable. They must not upgrade the financial position of the employee and must be supported by receipts as stipulated within this Directive. The provisions shall provide only for the employee's legitimate expenses, without opening the way for personal gain or for the underwriting of extravagances.
1.2.5 Entitlements not identified within this Directive will not normally be reimbursed unless deemed to result from exceptional circumstances. Treasury Board Secretariat (TBS) approval is required for payment of such expenses.
1.2.5.1 Employees requesting reimbursement of entitlements not identified within this Directive must provide a written submission to the Departmental National Coordinator who shall then forward the submission with its recommendation to the Program Authority at TBS for approval.
1.2.6 Expenses incurred because of misinterpretation or mistakes may not necessarily be reimbursed.
1.2.7 The applicable rates and allowances contained in the NJC Travel Directive, as modified from time to time by the NJC, shall form part of this Directive unless otherwise stated within this Directive. They shall be applied to all eligible participants irrespective of age, sex, marital or family status, or disability.
1.2.8 Travel and shipment of household goods and effects (HG&E) provisions shall comply with the provisions of the current NJC Travel Directive and the Household Goods Removal Service contract, unless otherwise specified in this Directive.
1.3 Inquiries
1.3.1 Inquiries concerning the shipment of personal and household effects and automobiles should be directed to the Central Removal Service (CRS), Government Services Canada.
1.3.2 Inquiries concerning commercial travel and accommodation reservations should be directed to the Government Travel Service.
Internet access: http://www.tbs-sct.gc.ca/hr-rh/gtla-vgcl/index-eng.asp or Government Travel and Living Accommodations
1.3.3 Inquiries concerning tax should be directed to Canada Revenue Agency (CRA) at 1-800-959-8281.
1.4 Application
1.4.1 This Directive applies to:
- all departments and other portions of the public service of Canada listed in Schedules I and IV of the Financial Administration Act; and
- any employer listed in Schedule V of the Financial Administration Act that is a member of the NJC and that has opted to follow this Directive.
Please note that the RCMP and the CF also use many of the provisions of this Directive with some separate provisions specific to their respective membership. Each organization publishes a separate relocation policy.
1.4.2 Payment of relocation expenses shall be authorized for employees who are:
- full-time and part-time indeterminate employees; or
- part-time employees appointed to full-time indeterminate positions; or
- seasonal indeterminate employees; or
- term employees appointed to indeterminate positions; or
- on Leave Without Pay (LWOP) for less than one (1) year; or
- on priority status as defined by the Public Service Employment Act (PSEA).
1.4.3 This Directive may apply, by mutual agreement of the employer and employee, to:
- term employees whose period of employment is to be longer than one (1) year; and
- employees on assignment of more than one (1) year's duration.
Where the assignment and/or term is for less than three (3) years, the provisions on sale and purchase of property will not apply (see section 13.6).
1.4.4 Employees relocating under the provisions of the Workforce Adjustment Directive are eligible to participate in this Directive.
1.4.5 The 40 km rule: should the relocation not meet the 40 km rule, relocation benefits may be taxable.
Normally, relocation shall only be authorized when the employee's new principal residence is at least 40 km (by the shortest usual public route) closer to the new place of work than his/her previous residence, in accordance with subsection 248(1) of the Income Tax Act:
S. 248(1), the definition "eligible relocation" was added by S.C. 1999, c. 22, s. 80(12), applicable to all taxation years. It reads:
"eligible relocation" means a relocation of a taxpayer where:
- the relocation occurs to enable the taxpayer (i) to carry on a business or to be employed at a location in Canada (in section 62 and this subsection referred to as "the new work location"), or (ii) to be a student in full-time attendance enrolled in a program at a post-secondary level at a location of a university, college or other educational institution (in section 62 and in this subsection referred to as "the new work location"),
- both the residence at which the taxpayer ordinarily resided before the relocation (in section 62 and this subsection referred to as "the old residence") and the residence at which the taxpayer ordinarily resided after the relocation (in section 62 and this subsection referred to as "the new work location") are in Canada, and
- the distance between the old residence and the new work location is not less than 40 kilometres greater than the distance between the new residence and the new work location ..."
The formula for calculating the distance is (CRA's form T1-M E (99) "Claim for Moving Expenses."):
1. Distance in kilometres between old home and new place of work = ______ km.
2. Distance in kilometres between new home and new place of work = ______ km.
3. Line 1 minus line 2 = ______ km.
1.4.6 This Directive does not apply to:
- employees being relocated to isolated posts for a period shorter than one (1) year. This is governed by the NJC Travel Directive or the NJC Isolated Posts and Government Housing Directive;
- employees being relocated to Canada from locations outside Canada. This is governed by the NJC Foreign Service Directives;
- employees being relocated from Canada to locations outside Canada. This is governed by the NJC Foreign Service Directives;
- employees being relocated between two points outside Canada. This is governed by the NJC Foreign Service Directives;
- employees on educational or developmental leave within Canada and employees on assignment or exchange duty within and outside the public service for periods of less than one (1) year.
1.4.7 Public service organizations not listed in section 1.4.1 of this Directive may request to be included under this Directive by the Program Authority at TBS.