Effective: April 1, 1999
Responsibility: Vice-President and Chief Financial Officer
When the Corporation requires an employee or prospective employee to be reassigned to another location within Canada or return to Canada from a foreign or isolated location to an area where the cost of housing of comparable standards is significantly higher than at the employee’s current place of residence, assistance may be provided in the form of an employee loan for a limited time if the employee purchases a home in the new location.
- This policy was updated in September 2008.
- This policy was updated November 2003.
- This was originally Corporate Finance and Administration Policy 403.90 - Employee Relocation Loans.
All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control. The people responsible for interpreting this policy are the Senior Director, Comptrollership and Operations, and the Senior Director, Total Compensation.
DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE
Eligibility and the amount of the loan shall be in accordance with Corporate policy as referred above.
When it has been recommended by Human Resources that an employee is eligible for such a loan, the following conditions shall apply
- The loan must be approved by the Senior Vice-President, Human Resources and Organization, or his/her delegate and by the Vice-President and Chief Financial Officer or his/her delegate.
- The employee must purchase a home at the new location (hereinafter referred to as the “home”). Such purchase may be deferred or delayed up to one year from the date of transfer if approved in advance by the Vice-President and Chief Financial Officer
- The entire amount of the loan must be applied to the purchase price of the home, thus reducing the value of the first mortgage.
- The loan must be secured in the form of a mortgage and/or other instrument of indebtedness, in favour of the Corporation, commensurate with the amount of the loan.
- The loan or property must be owned jointly by the employee and all parties to the mortgage deed; in addition, all parties are required to sign the loan documents.
- Employee loans up to a maximum of $50,000 may be granted for a maximum duration of five years.
- Loans shall become due and fully payable at the earliest of the following (hereinafter referred to as the due date):
- The end of the negotiated period, if less than five years
- The end of the maximum period of five years
- The rental, in whole or in part, of the home
- The sale of the home
- The date of termination of employment, for any reason
- The home being refinanced by the employee or the terms and conditions of the first mortgage being amended
- The employee abandoning the home
- The employee removing his/her personal belongings from the home for any reason
- If an employee with a loan is relocated more than once within the five-year period, the loan on the home in the original location must be repaid. Eligibility for a new loan in the new location shall be evaluated in accordance with corporate policy. No employee can have more than one loan at a time.
- Such loans must be considered in accordance with applicable tax regulations.
- The Corporation reserves the right to suspend this policy at any time or to refuse a loan in any specific instance.
Human Resources shall manage the relocation loans and coordinate loan repayments with Corporate Local Accounting and the Law Department.
Corporate Payroll shall calculate and report applicable taxable benefits in accordance with tax regulations.