1.1 Effective Date
This Directive comes into effect April 1, 2005.
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 family and on departmental operations.
1.2.2 The NJC Integrated Relocation Directive provides a personalized approach for each participant's particular needs. It has two facets:
- a policy formula that marries direct reimbursement of expenditures, of which the employee has little control over, and a "cafeteria style" approach to benefits providing an opportunity for the employee to select what is best for him/her (within a funding envelope) under his/her own family/unique circumstances; and
- a contract with a relocation services supplier who will provide the employee with professional assistance throughout every step of the relocation with the view of presenting the employee every reasonable opportunity to maximize the available benefits. This includes relocation planning, marketing assistance and destination services along with several other enhanced relocation services.
The "one-stop shopping" concept of this Directive will ensure access to professional relocation services assistance throughout every step of the employee's move. An employee makes the final decision to accept or reject professional advice provided.
1.2.3 This policy 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 the 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 the Directive do not exist and will not be paid under any circumstances.
- The approval of the Treasury Board is required for payment of relocation expenses not covered by this Directive or under the terms of the contract with the third party supplier.
- The Departmental National Coordinator is responsible for ruling on requests for reimbursement that fall within the intent of this Directive, but whose special circumstances have not been specifically addressed.
18.104.22.168 In exceptional circumstances, employees may request reimbursement of expenses not identified in the Directive. Employees requesting such entitlements must submit a business case to the departmental national coordinator who shall forward the submission with their recommendation to the Project Authority at Treasury Board Secretariat (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 Travel Directive, as modified from time to time by the National Joint Council (NJC), shall apply to this Directive unless otherwise stated within this Directive. They shall be applied to all eligible persons irrespective of age, sex, marital or family status, or disability.
1.2.8 Travel and shipment of household goods and effects 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.
1.3.1 Inquiries concerning the shipment of personal and household effects and automobiles should be directed to the Central Removal Service, Government Services Canada.
1.3.2 Inquiries concerning commercial travel and accommodation reservations should be directed to the Government Travel Service.
1.3.3 Inquiries concerning tax should be directed to Canada Revenue Agency (CRA) at 1-800-959-8281.
p>1.4.1 NJC IRD applies to:
- Employees/appointees in the Executive Group (EX) and to Governor in Council appointees (GIC) whose relocation were previously governed under the provisions of the Special Relocation Authorities (chapter 3-2).
- The Royal Canadian Mounted Police (RCMP) and the Canadian Forces (CF), with some separate provisions specific to their respective membership. Each organization publishes a separate IRP Policy.
- Employees of departments and agencies listed in the Financial Administration Act (FAA) under Schedule I, I.1 and II, and branches of government designated as departments for purposes of the FAA.
1.4.2 Payment of relocation expenses shall be authorized for employees who are:
- 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 The NJC Integrated Relocation Directive may apply to term employees when the period of engagement is to be longer than one year and employees on assignment of more than one year's duration, by mutual agreement of the employer and employee as per section 12. Where the assignment and or term is for less than three years, the provisions on sale and purchase of property will not apply. See section 13.7.
1.4.4 Employees relocating under the provisions of the Workforce Adjustment Directive are eligible to participate in the NJC Integrated Relocation Directive.
1.4.5 The 40 Km rule: Should the relocation not meet the 40Km 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 Section 248(1) of the Income Tax Act:
S. 348(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 (...), 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 (...),
- 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 (Canada Revenue Agency's form T1-M E (99) "Claim for Moving Expenses."):
- Distance in kilometres between old home and new place of work = ______.km
- Distance in kilometres between new home and new place of work = ______.km
- Line 1 minus line 2 = ______.km
1.4.6 The NJC Integrated Relocation 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;
- relocations to Canada from locations outside Canada. This is governed by the NJC Foreign Service Directive;
- relocations from Canada to locations outside Canada. This is governed by the NJC Foreign Service Directive;
- relocations taking place between two points outside Canada. This is governed by the NJC Foreign Service Directive;
- 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 are not eligible for benefits under IRD.
1.4.7 Public service organizations not listed in FAA schedule I, I.1 or II may request authority to be included under the IR Directive by the Project Authority at TBS.