---
title: Will Companies Pay For Corporate Relocation?
description: This article explains in detail whether corporate companies will pay for someone's relocation.
image: https://d37oebn0w9ir6a.cloudfront.net/account_45763/will-companies-pay-for-relocation_36eca3f08b5f19235adcc983bddc9d15.png
---

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![Three people packing boxes and working for a company that is paying for their relocation.](https://d37oebn0w9ir6a.cloudfront.net/account_45763/will-companies-pay-for-relocation_36eca3f08b5f19235adcc983bddc9d15.png)

## Will Companies Pay For Relocation?

 November 2024

[Corporate relocations](https://www.galleon-ltd.com/relocation-for-employees) can enhance organisational agility, enhance scalability, and expand business opportunities. However, unless it is well-orchestrated, the practical process of [uprooting employees](https://www.galleon-ltd.com/blog/how-to-discuss-relocation-with-employees) from the UK to a different location can be both stressful and daunting. One of the major considerations is the cost of relocation. Read on to find out the facts.

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## **Relocation Costs**

Relocating for work [can be very expensive](https://uk.indeed.com/career-advice/career-development/relocation-cost). Depending upon the type of relocation, it may include selling a property, buying another one, traveling to the new location, packing, moving, and unpacking. Considerations include small details such as packing materials, and big considerations such as legal fees, valuation surveys, and penalties for the early termination of lease agreements. The cost of temporary accommodation, insurance, and new furniture may also be part of the relocation. To handle these complexities, many companies opt for a ‘relocation package’ approach, often managed by a third party.

## **Regulations**

In the UK, there is no legal obligation for employers to pay for relocation. However, it is considered best practice to offer practical and financial assistance. 57% of British people say that moving house is [the most stressful life event](https://www.indexdigital.co.uk/home-gardens/moving-house-ranked-most-stressful-life-event-by-57-of-brits), eclipsing both divorces and having a child. As such, one-third of employees will turn down a relocation, with [HR specialists Raconteur](https://www.raconteur.net/talent-culture/corporate-relocation-comeback) stating that broaching the subject with care, offering financial incentives, and providing perks such as covering travel expenses to visit any family left behind can all be “persuasive.”

## **Relocation Allowance**

A relocation allowance is a fixed sum of money to help with the relocation. The average relocation allowance in the UK is about £8000, mostly due to [HMRC tax considerations](https://www.gov.uk/expenses-and-benefits-relocation). The precise figure is usually closely negotiated between employer and employee, with the ultimate goal of the package being to take the stress out of relocating rather than adding to it. To determine a suitable relocation allowance, the contract should reflect what the employee feels is necessary as well as remaining in tandem with competitors. Be prepared to switch out benefits if this makes the package more attractive.

## **Reimbursement**

Relocation allowances can be given as a lump sum, or as reimbursement. In these situations, the employee takes control of the move and its associated expenses, and the employer refunds the difference. Many employees prefer this option because it offers greater choice, flexibility, and ultimately autonomy. As with all types of relocation package, elements of reimbursement can be negotiated and fixed into a contract. For instance, maximum cost limits are a very standard element of this financial arrangement, although again this is [primarily for tax purposes](https://www.taxinsider.co.uk/relocation-allowance).

## **Third-Party Relocation**

Relocating can be confusing, stressful, and can cause financial and time pressures for employers and employees alike. As such, one of the most favoured options is to hire a professional organisation to take care of all the details. This removes the employer from the picture, leaving all negotiations to the employee and the professional third-party. With an experienced third-party relocation agent, this can make the entire process effortless, extinguishing the anxiety from the move and placing the focus firmly on the perks.

## **What Next?**

If you have corporate removal requirements or would like professional advice about how to help employees move easily and without stress, Galleon can help. [Please get in touch](https://www.galleon-ltd.com/get-your-quote) with us today to speak to a professional.

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### Posts By Topics

- [Moving Overseas (34)](https://www.galleon-ltd.com/blog/tag/moving-overseas)
- [Corporate Relocation (32)](https://www.galleon-ltd.com/blog/tag/corporate-relocation)
- [Personal Relocation (22)](https://www.galleon-ltd.com/blog/tag/personal-relocation)
- [Global Relocation Services (20)](https://www.galleon-ltd.com/blog/tag/global-relocation-services)
- [Corporate Relocation Services (17)](https://www.galleon-ltd.com/blog/tag/corporate-relocation-services)
- [Industry News (13)](https://www.galleon-ltd.com/blog/tag/industry-news)
- [Galleon News (9)](https://www.galleon-ltd.com/blog/tag/galleon-news)
- [International Removals Company (5)](https://www.galleon-ltd.com/blog/tag/international-removals-company)
- [Domestic Removal Services (2)](https://www.galleon-ltd.com/blog/tag/domestic-removal-services)
- [Global Mobility Solutions (2)](https://www.galleon-ltd.com/blog/tag/global-mobility-solutions)

see all

### Articles

[Relocating From The UK To Canada: What Visa Do You Need?](https://www.galleon-ltd.com/blog/visa-uk-to-canada-relocation)

[Moving To Australia Over The Age Of 35: Is It Worth It?](https://www.galleon-ltd.com/blog/australia-over-35-is-it-worth-it)

[UK vs New Zealand: Which Has A Better Quality Of Life?](https://www.galleon-ltd.com/blog/uk-new-zealand-better-quality-life)

[Cost Of Living: Which Countries Are Most Affected?](https://www.galleon-ltd.com/blog/cost-of-living-countries-most-affected)

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