who were to be made redundant but would be offered one-month extension contracts at a multiple of 1.25 times normal salary to help speed up the transition at the new site. This was accepted. Relocation is far more complex than many people imagine; if families are involved, it can become messy with schools, uprooting family ties and so on. On top of this is the question of the previous property when applicable. For a relocated employee to function properly, they need to have their mind put to rest on these stressful matters. The CEO asked us to come up with a draft package to be considered by the Board. The first step was to calculate to maximum financial exposure to redundancy payments and the enhancements. Natalie and I went back to my office to run a report, separating out the 29 possible relocatees.
So, what package could we offer? In this, I had to take an arm’s length view, as I was affected and couldn’t let my personal circumstances affect my suggestions! Natalie had lots of experience with this, and it was appropriate that she framed the proposals. After a few hours and an ordered-in sandwich lunch, the plan looked something like this: The current Revenue limit for relocation expenses was £8,000, designated ‘qualifying costs’ attached to moving home. Travel and subsistence costs related to finding a new home would be paid up to £1,000, and the company would bear the tax on that. The gap between selling an existing and buying a new one was a big consideration; the idea was to provide a company bridging loan to enable the transition.
There would be a tax implication for the interest charged if less than LIBOR1, as it would be deemed beneficial. This whole proposal was going to need to be run past our tax advisers and the Financial Director, but we did the projections for the 29 people involved and added to the other calculations. 4.26 p.m. The draft plan and costs were delivered to the CEO, who would study them that evening. We had contracted Natalie on a fractional basis for 3 months, two days per week. Her next day would be Friday, so I thanked her for getting us so far along. The next visit would be to nail down the various communications and meetings that would need to be scheduled. 5.11 p.m. With something of a headache, I made my way by Tube to Liverpool Street. In all this, I hadn’t stopped once to think about my own future.
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ISSUE 11 GLOBAL PAYROLL MAGAZINE
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