Employee Relocation Agreement Template for United States

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Key Requirements PROMPT example:

Employee Relocation Agreement

"I need an Employee Relocation Agreement for a senior software engineer moving from Seattle to our Austin office in March 2025, including provisions for home sale assistance and temporary housing for up to 3 months."

Document background
The Employee Relocation Agreement serves as a critical document when organizations need to relocate employees for business purposes. This agreement, governed by U.S. federal and state laws, establishes clear expectations and obligations for both parties during the relocation process. It typically includes provisions for expense reimbursement, tax considerations, temporary housing, and potential repayment obligations if the employee leaves within a specified period. The agreement helps organizations manage relocation costs while ensuring compliance with relevant tax and employment laws, particularly following the Tax Cuts and Jobs Act of 2017's impact on relocation expense treatment.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the relocation agreement

2. Background: States the context of the relocation, including the employee's new role and location

3. Definitions: Defines key terms used throughout the agreement, including 'relocation expenses', 'effective date', etc.

4. Relocation Benefits: Details the specific benefits and support provided by the employer

5. Tax Implications: Explains the tax treatment of relocation benefits and responsibilities of both parties

6. Employee Obligations: Outlines the employee's responsibilities during the relocation process

7. Repayment Terms: Specifies conditions under which the employee must repay relocation benefits

Optional Sections

1. Temporary Housing: Details temporary housing arrangements if provided by the employer as part of the relocation package

2. Home Sale Assistance: Terms related to selling current residence and any employer support for the home sale process

3. International Provisions: Additional terms and requirements specific to international or cross-border relocations

4. Family Support: Provisions for spouse/family assistance including job search support and school finding services

5. Storage Provisions: Terms and conditions for temporary storage of belongings during the relocation process

Suggested Schedules

1. Schedule A - Eligible Relocation Expenses: Detailed list of expenses covered by the relocation package

2. Schedule B - Expense Submission Process: Procedures for submitting and claiming relocation expenses

3. Schedule C - Tax Gross-Up Calculation: Method for calculating tax gross-up on taxable benefits

4. Appendix 1 - Relocation Timeline: Expected timeline for various relocation activities

5. Appendix 2 - Required Documentation: List of documents required for expense reimbursement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Federal Tax Laws: Internal Revenue Code (IRC), Tax Cuts and Jobs Act of 2017, and IRS regulations governing the tax treatment of relocation benefits and expenses

Labor Laws: Fair Labor Standards Act (FLSA), state-specific wage and hour laws, and employment contract regulations that affect relocation terms

Housing and Real Estate Laws: State-specific real estate regulations, Fair Housing Act, and Real Estate Settlement Procedures Act (RESPA) governing housing aspects of relocation

Immigration Laws: Immigration and Nationality Act and state-specific immigration requirements for relocating employees, if applicable

State-Specific Considerations: State tax implications, labor laws, contract laws, and specific relocation requirements that vary by jurisdiction

Equal Employment Laws: Title VII of the Civil Rights Act, Americans with Disabilities Act (ADA), and Age Discrimination in Employment Act (ADEA) ensuring non-discriminatory relocation practices

Contract Law: State-specific contract requirements, consideration principles, and enforcement provisions for relocation agreements

Privacy Laws: Regulations governing the protection of personal and financial information during the relocation process

Reimbursement Terms: Specific provisions detailing what expenses will be covered and how reimbursement will be handled

Tax Treatment: Provisions addressing the tax implications of relocation benefits and who bears responsibility for any tax consequences

Repayment Provisions: Terms specifying when and how an employee might need to repay relocation benefits, such as early termination

Duration of Support: Timeframe during which relocation support and benefits will be provided

Covered Expenses: Detailed list of which relocation-related expenses are covered under the agreement

Employee Obligations: Specific requirements and responsibilities of the employee during and after the relocation process

Company Obligations: Specific requirements and responsibilities of the employer in supporting the relocation process

Termination Provisions: Terms governing what happens to relocation benefits and obligations if employment is terminated

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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