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TRANSPARENCY INTERNATIONAL SECRETARIAT

RELOCATION ALLOWANCE POLICY

1. Review & Change History

Version

Date

Effective

Created by

Approved

by MG

Reviewed

by Works

Council

Change

history

01.08.2012

25.01.2012

Initial Version

17.03.2014

06.03.2014

Annual Review

28.05.2015

Review period

09.09.2014 until

26.05.2015

22.05.2015

29.04.2015

and final

27.05.2015

Special review

2. Purpose of the Relocation Policy

The purpose of this policy is to clarify the circumstances under which employees are

provided with financial assistance to meet costs incurred when having to relocate as

part of their employment with TI-S and the ground rules around eligible expenses

and costs, claims and repayments. This policy is limited to financial assistance and

does not cover general relocation assistance.

3. Scope of the Relocation Policy

This policy applies to all new employees but does not apply to interns. However, it

applies to staff members, who were appointed as employees immediately (period of

interruption cannot exceed 1 month) following their internship at TI-S and who had

relocated to Berlin for the purpose of the internship. Only the first contract after the

internship can attract a relocation allowance. Thereafter they will be treated as Berlin

based.

This policy does not apply where an existing staff member, at their own request and

outside of the normal recruitment and selection process, is transferred to another

location in and/or outside Berlin, and/or at their own request return to Berlin.

4. Process and guidelines

The entitlement to a relocation allowance under these regulations will be an integral

part of the offer letter and the employment contract subject to signature of both

parties. Travel expenses for moving to Berlin and work permit expenses as per 4.2

are in addition to the relocation allowance as detailed in 4.1.

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4.1 Relocation allowance

When a new employee receives an employment offer, they can choose between two

types of relocation allowance:

1) Lump-sum (without presentation of receipts) or

2) Reimbursement of shipping of personal belongings/household goods to move

to Berlin (upon presentation of receipts)

The type of relocation allowance chosen will be part of the employment contract. It is

not possible to mix both options. The lump-sum or the reimbursement of shipping of

personal belongings for contracts shorter than 2 years is calculated on a pro rata

basis according to the contract length (e.g. for a 1 year contract the lump-sum would

be: € 1000). Where contracts are initially for less than 2 years but subsequently

extended, an additional amount will be paid to the staff member up to a maximum of

two years pro rata.

"Dependant": means the spouse or partner of the appointee and any child under the

age of sixteen years, or twenty one years if a full-time student. The employee needs

to inform HR by accepting the employment offer of the number of dependants that

will move with him/her to Berlin.

4.1.1 Lump-sum

The new employee choosing the lump-sum will receive a maximum amount of

€ 2000 to help with the costs. An additional amount of € 1000 per dependant will be

granted. No presentation of receipts is needed.

The lump-sum will be paid at the same time as the first salary or when the proof of

residence is provided if later. The applicability of the lump sum option is regulated by

German tax laws. The lump sum will be taxable but TI-S will cover the amount of tax

subject to proof of previous maintenance of one’s own household.

At the time of approving this policy an amount of € 715 (as of 01.03.2015 € 730) for

singles and € 1.429 (as of 01.03.2015 € 1.460) if the employee is accompanied by a

spouse or partner (plus € 315 per child, as of 01.03.2015 € 322), (according to the

applicable German legislation) will be tax-free where proof can be provided that the

employee maintained their own household before moving to Berlin and that they

intend to set up a new household in Berlin (this can be proven by showing copies of

the lease or property contract in their name, or mortgage documents in the country of

origin).

Where maintenance of one’s own household before moving to Berlin cannot be

established but where one will be set up (or vice versa) only 20% of the tax-free

amount can be claimed. Any taxation incurred due to the inability of the new

employee to proof the maintenance of a previous and/or a new household will

be deducted from their pay.

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4.1.2 Reimbursement of shipment of personal belongings

An employee choosing the reimbursement of shipment of their personal

belongings/household goods to move to Berlin can receive the following:

Relocation

allowance

Additional amount per

dependant

National relocation

€1000

€500

European relocation

€2000

€1000

Overseas relocation

€5000

€1500

The address given on the CV of the new employee will be used to determine if it is a

national, European or overseas relocation. No offer will be made without an address

being provided. TI-S reserves the right to request proof of residency at the address

given.

Reimbursement can only occur upon providing the original receipt(s) of

payment or invoice(s).

Examples of eligible costs are:

 Costs for packing and shipment of personal belongings/household goods to

move to Berlin

 Costs for temporary storage of furniture and possessions

 Extra luggage for flight

 Excess baggage fee

Note: Relocation expenses can be reimbursed up to the maximum amount as

stated in the above table.

4.2. Other eligible expenses

4.2.1. Travel Expenses

TI-S will reimburse actual travel expenses for the employee and dependants for one

way economy airfares using the most reasonable direct route to Berlin, Germany or

for a one way train ticket in 2nd class to Berlin, and a taxi/travel costs from their

residence to the airport/train station and then to their first address in Berlin. In the

case of Interns the same rules apply with a basic baggage allowance for an

economy fare and total travel costs restricted to € 300.

If a return airfare is significantly lower than a one way airfare, TI-S may

consider reimbursement of the actual amount of return air fare.

For staff members and interns who elect to travel by another method of transport,

e.g. by private motor vehicle, the expenses will be reimbursed in line with the

German tax laws.

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4.2.2. Work permit

Where a work or residency permits are required, TI-S will pay/reimburse the costs

for the dependants of the employee until their spouse or partner finds employment of

their own and the children reach the age of sixteen or twenty-one if a full-time

student.

4.2.3. German class

In order to help employees settle in Berlin, TI-S will support staff members by

contributing 50% of the course fees for German classes. […].

In order to help the children of the employee under the age of sixteen years, or

twenty-one years if a full-time student, settle in Berlin, TI-S will contribute to their

German lessons up to € 500. The other conditions of the German classes

reimbursement outlined in the Learning & Development Policy are in effect.

5. Advance payments

An advance on the relocation allowance can only be requested for the option

“reimbursement of shipping costs” by submitting the appropriate Finance “Memo

Cash/Bank Transfer”. The memo has to be signed by the Employee, the Department

Director and HR. Once this is done it will be transmitted to Finance.

The following two conditions apply:

 A maximum amount of € 2000 or the entitlement if less can be requested as a

cash advance.

 Original receipts and/or invoices need to be handed in to HR within two weeks

after the cash advance has been given/ transferred to the staff bank account.

If receipts are not handed in within these two weeks after the cash advance has

been given/transferred to the staff, the advanced amount for which receipts have not

been given to HR will be taken back directly from the staff’s next salary.

In the event of the option “lump sum” any advance will be treated as a normal cash

advance on salary and will be deducted from the salary in the same month. To

request salary cash advance an email should be sent to their line manager copying

HR.

6. How to claim expenses

The reimbursement of shipment of personal belongings (§ 4.1.2) and other expenses

(§ 4.2) are claimed by completing one of the relevant financial memos (cash or bank

transfer) and providing the original receipts of payment or invoices.

[…]

After sign-off by their Line Manager the staff member will hand the claim together

with the invoices to the HR Department.

The HR Department reviews the claim and the invoices for eligibility.

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Once they have approved the claim HR will hand the claim to the Finance

Department for processing and payment.

Relocation allowances paid under this policy will be charged to the budget of

the staff member’s department.

7. Time period for claims

Employees eligible for relocation assistance must claim expenses no later than 12

months after the end of their contractually agreed probation period.

8. Repayments

If a staff member voluntarily leaves employment with TI-S within the first year of

employment the relocation allowance has to be repaid pro rata at 1/12 per month. In

this case the employee should contact HR immediately to make arrangements for

the repayment of the relocation allowance.

If no other repayment arrangements have been proposed by the employee and have

been agreed upon by HR and their Department Director the outstanding amount

owed will be deducted from the employee's salary in line with the relevant legislative

provisions.

Any waiver of this obligation must be approved by the respective Group Director and

the Managing Director or his deputy and for the Managing Director by the Chair of

the Board.

If TI-S terminates the employee’s employment during the probation period for

reasons other than gross misconduct, TI-S will assume the costs of the employee

(and dependants’) travel back to the location where the employee relocated to Berlin

from, up to a maximum equivalent to the costs associated with the employee (and

dependants’) Berlin-bound travel against actual receipts submitted before the last

day of employment with TI-S.

9. Review process

This policy will be reviewed every two years by the HR Department in consultation

with the Works Council unless an earlier need is identified by MG, HR and/or the

Works Council.

10. Exceptions

Where an exception to this policy is needed it will be reviewed by HR, approved by

the relevant Group Director and the Works Council will be informed.

End of policy