Relocation Packages: What Employers Will Actually Pay For

When a company offers to sponsor your visa, the base salary is only part of the negotiation. Relocating across continents is incredibly expensive, and a good employer should absorb the majority of that cost.

Here is what a standard, competitive relocation package for a senior hire should cover.

The Core Components

1. Visa and Immigration Fees:

   • The company MUST pay the sponsorship costs (e.g., the Certificate of Sponsorship fee and the Immigration Skills Charge in the UK).
   • A good package will also cover your personal visa application fee and the exorbitant Immigration Health Surcharge (IHS).
   • Negotiate: Ensure they also cover the visa application fees for your dependent spouse and children.

2. Flights:

   • One-way economy flights for you and your dependents from your home country to the destination city.

3. Temporary Accommodation:

   • 2 to 4 weeks in a serviced apartment or hotel upon arrival. Finding an apartment in cities like London, Amsterdam, or Toronto without local credit history takes time; you need a place to land.

4. Shipping / Baggage Allowance:

   • A lump sum (e.g., £1,000 - £3,000) or reimbursement for excess baggage or a shipping container for your belongings.

5. Tax Consultation / Setup Support:

   • Help setting up a local bank account, getting a tax number, and understanding your new tax liabilities.

The "Lump Sum" Alternative

Many tech companies simplify this by offering a "Relocation Bonus" (e.g., £8,000 cash) paid in your first paycheck, leaving you to book your own flights and Airbnb. This is often preferable as it provides flexibility.

Beware the Clawback Clause

Almost all relocation packages come with a "clawback" or repayment clause.

• What it is: If you resign or are fired for cause within a certain timeframe (usually 12 to 24 months), you must repay the relocation costs.
• What to check: Ensure it is pro-rated. If you leave after 6 months on a 12-month clause, you should only have to repay 50% of the costs, not 100%. Never sign a clause that forces repayment if you are laid off due to company restructuring.