Free policy template · Word

Employee Transfer Policy

An employee transfer policy governs moving employees between departments, branches, plants or cities — whether initiated by the company or requested by the employee. It covers notice, consent, joining time, relocation and travel allowances, accommodation support and how pay and seniority are protected.

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[Company Logo][Company Name]

EMPLOYEE TRANSFER POLICY

Policy No.:: [Reference Number]
Version:: [Version Number]
Effective Date:: [Date]
Policy Owner:: Human Resources

1. Purpose

This policy sets out how [Company Name] transfers employees between locations and functions, so that business needs are met while employees are treated fairly and supported during relocation.

2. Scope

It applies to all confirmed employees whose terms of employment provide for transfer. Short-term deputations of less than [Number] months are covered by the Travel Policy.

3. Definitions

Company-initiated transfer: a transfer for business reasons decided by management.
Employee-requested transfer: a transfer requested by the employee for personal reasons.
Joining time: paid days allowed to relocate.
Relocation: change of city requiring a change of residence.

4. Policy

Transfers do not reduce grade, salary or continuity of service, including for gratuity.
Company-initiated inter-city transfers are given at least [Number] days' written notice except in an emergency.
Employee-requested transfers are considered after [Number] years in the current location and depend on a suitable vacancy.
Joining time of [Number] days is allowed for inter-city transfers.
Relocation support for company-initiated transfers is as per the table below; employee-requested transfers receive [support / no support].
Hardship requests (serious illness, children appearing for board exams, sole caregiver) are considered sympathetically.

Entitlement	Grade [Grade]	Grade [Grade]	Grade [Grade]
Travel for family	[Mode/Class]	[Mode/Class]	[Mode/Class]
Household goods shifting	Up to ₹[Amount]	Up to ₹[Amount]	Up to ₹[Amount]
Temporary stay	[Number] days	[Number] days	[Number] days
One-time relocation allowance	₹[Amount]	₹[Amount]	₹[Amount]

5. Procedure

The Department Head proposes the transfer to HR with business reasons.
HR discusses it with the employee and considers concerns.
HR issues a transfer order stating new location, reporting manager, effective date and entitlements.
The employee completes handover and is relieved by the current location.
Relocation claims are submitted with bills within [Number] days of joining.
HR and payroll update records, including state professional tax.

6. Responsibilities

Department Heads: justify transfers and plan handovers.
HR: communication, orders, and fair treatment.
Admin/Finance: logistics and reimbursements.
Employees: report at the new location on the effective date.

7. Non-compliance

Failure to report at the new location without approved reason may be treated as unauthorised absence under the Disciplinary Policy, after giving the employee an opportunity to explain.

8. Review & Approval

HR will review the entitlement amounts annually.

Prepared by
[HR Name]
Human Resources

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

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What this template includes

Types of transfer — company-initiated, employee-requested, inter-department
Notice period of [Number] days — time to plan family moves
Joining time — paid days to relocate
Relocation allowance table — travel, goods shifting and temporary stay
Protection of pay, grade and service continuity
Hardship exceptions — health, children's board exams, caregiving

When to use it

Opening a new branch and moving experienced staff to start it
An employee asks for a transfer to their home town or a spouse's city
Defining relocation reimbursement for inter-city moves
Appointment letters include a transfer clause and you need a process behind it

How to customise this template

1Check your appointment letters contain a transfer clause
2Fill the relocation entitlement table by grade
3Decide whether employee-requested transfers get any relocation support
4Set the minimum service in a location before a requested transfer
5Add any state-specific allowances or cost-of-living differences

HR tips

Talk to the employee before issuing a transfer order — surprise transfers drive resignations
Avoid transfers mid-academic year for employees with school-age children where possible
Record the business reason; transfers that look punitive invite disputes
Update payroll for the new state's professional tax and statutory registrations

A transfer must be supported by the employment contract and should not be used as a punishment. Review this template against your standing orders, appointment terms and with legal advice, especially for workmen.

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Frequently asked questions

Can an employer transfer an employee without consent?+

If the appointment letter or standing orders contain a transfer clause, the company can generally transfer for genuine business reasons. Transfers without such a clause, or that are mala fide, can be challenged.

What is joining time in a transfer?+

Joining time is the paid period allowed to the employee to relocate and report at the new location, usually a few days depending on distance.

Is relocation allowance taxable?+

Tax treatment depends on how it is paid — reimbursement of actual transfer costs versus a fixed allowance. Confirm with your tax adviser and state it in the policy.

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