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Is my new employer being cheeky with my relocation package??


pennywise

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Hi all

 

Looking for some advice. As part of my relocation offer with my new employer in Aus (going out on a 457 visa) they have agreed to ship my belongings with a cap of USD 2500. When this was mentioned during the offer I thought great! I can ship all my stuff! And I accepted the offer. Now we’re actually fine-tuning the details of the relocation, they use a mobility company that are arranging the shipping and this company have said that based on my allowance of USD 2500 I can take 8 Standard boxes by airfreight with a max weight of 150kg. Box sizes I believe are 51x41x31 (ish). This doesn’t seem like much at all and when I asked if I could ship my belongings instead of airfreight so that I could take more for my allowance, and they said no there are higher costs for shipping and that all I could get for the USD2500 was 8 standard boxes by air freight – that’s that it seems.

 

I did a quote with seven seas worldwide (and a couple of other websites) and 8 boxes with 3 weeks storage by airfreight came to £600! Furthermore, if I leave the company before 2 years I have to pay back the relocation costs and it feels a bit cheeky that they are saying that it costs that much to ship stuff over and would make me pay that back when I know that it can be done much cheaper? I’m not planning to leave before 2 years but you never know what might happen. I feel the costs they’ve quoted for other parts of my relocation allowance are high too (i.e. 4000 AUD for 2 weeks temporary accommodation – hoping I’ll be in a 5 star luxury mansion for that price but I doubt it!)

 

I am bringing this up with my relocation manager but I just wanted to see if anyone else has been in this situation and if it’s normal (it’s a large company so maybe it costs a lot more due to the third party involvement etc) or maybe I've just totally underestimated shipping costs....

 

Thanks

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That's not really the point. I can't afford to move to Oz without a relocation package and I need the move to be worth my while i.e. not have to sell half my stuff and buy more stuff out there. I also recently mentioned my salary in a thread and half the replies said it wasn't a great salary for Sydney (can't win hey) so even more reason why the relocation package needs to be worthwhile!?

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You are lucky to get relocation but it's sensible to assume that includes moving your furniture etc and not 8 boxes. The immigration lark is a huge revenue raiser. I think you're right to raise it and if your company are giving you the $ to move, this should be used in a way that is most helpful to you

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Just noticed you're going to Sydney. Salary is pretty low for such an expensive city - assume you are on your own and not taking family/kids? Accomodation costs are bonkers $200 -$300 a night should be tops for centrally based apartment. I would negotiate but also take into account that how they treat the negotiation is an indication of how they are going to be to work with. Once you're over here on a 457 you're trapped to that employer and the fact that they're using overinflated costings should be a bit of a warning bell!

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I'm getting relocated back to wa ...when I go just interstate though ...and it won't cost me a bean ...and it's a good job or the can sod off lol ....

 

my my hubby worked for a big company in brissie they didn't pay for relocation not a penny .

 

He he took the job in wa and they are a small company and haven't batted a eye lid ...nope get ya mrs over when she's ready we will sort the cost .

 

Its no no skin off their nose it's peanuts to them . That's a crap package for you but better than nothing I suppose :)

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On an under 100k salary for a 457 visa you should not expect any relocation package...it's not required for the visa and not expected for a mid level position like yours seems to be. The money they are offering is not meant to pay all your relocation costs but to help. With a 457 visa it's only temporary so you should only be looking at transporting clothes and the like not furniture - you put those in storage. Purchasing new furniture for the minimum required for setting out a flat will only cost you a couple of thousand...cheap some and dining suite less than a thousand, fridge and bed maybe another thousand. What more do you need for a temporary stay.

 

As the package is not required the company is within their rights to say if you leave before two years you pay this back....its a very common clause (mine is paying for a Masters course but I have to remain working for them for a year post degree -it's taking three years to do it- or I have to pay the 35k back.)

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I am going alone yes - I'm not planning to move any furniture at all, I just don't think 8 standard 50x40x30 boxes is very much? I planned to take for instance: kitchen stuff, bedding, small lamps, photo frames etc... I don't have a huge amount of stuff to be honest, but it's probably more than 8 boxes worth.

 

I am totally on board with having to pay the relocation costs back if I leave before 2 years - I'm not arguing that concept. It's just not ideal if I'm expected to pay back $3000 for shipping that actually should only cost $1000 and $4000 for accommodation that should only cost half that... etc

 

Agree with what Chortlepuss says about it being a warning sign on the employer but I'm giving them the benefit of the doubt as I was recommended the job by a friend who works there and says its a great place to work.

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You should bounce the other quotes off the "mobility company" and ask them to explain their pricing. Sounds like it may be them who are being cheeky rather than your employer.

 

Relocation packages are an incentive from the employer to help persuade the right person to work for them. They are obviously keen to get you.

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I am going alone yes - I'm not planning to move any furniture at all, I just don't think 8 standard 50x40x30 boxes is very much? I planned to take for instance: kitchen stuff, bedding, small lamps, photo frames etc... I don't have a huge amount of stuff to be honest, but it's probably more than 8 boxes worth.

 

I had 8 boxes for two people when I moved! Wouldn't bother taking pretty much everything you listed except maybe photos if they were particularly personal. You can buy it all here pretty cheaply.

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Thanks Suzu I have done that this eve so will wait to hear what they say. have also asked the company if I can arrange shipping myself and claim back...

 

Who are you going to be working for? It sounds like one of the big 4. They love relocating people to Aus as it costs them heaps less for people to do the same job here as a pose to the US / UK. For example, UK Accenture senior manager is 100,000 GBP (not based in london) with 12,000 GBP a year car allowance and private health cover. Senior manager here is $150,000 with no car allowance and no health (and you are forced to buy health here). So - they get a bloody good deal! Makes you wonder who chips in for all the Aussie propaganda that blights everyone's living rooms across the UK doesn't it........ :-)

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I don't think it's being cheeky, don't get me wrong but I am guessing you are not the first employee that has the same relocation offer from that company. Relocation assistance is a privilege and not every employee with get.

 

Bear in mind that your employer would have different rate than what you were quoted because your employer does not pay upfront, it could be on a 30-day or more account. You may also add the effort that other employee's time spent in organising your relocation.

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I don't think your employer is being at all cheeky, you are not in a senior position going off the salary level, so I actually think you are lucky. But yes I probably would ask if you can spend the freight budget yourself and of course sea is much, much cheaper than airfreight. For anyone to suggest otherwise to you is just daft. The accommodation works out at $285 a night, not cheap accommodation but perfectly reasonable for an expensive city like Sydney, again perhaps ask if you can stay somewhere a bit cheaper though.

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I moved over with a consultancy on a 457 - we were paid less than the locals but they did sponsor us for PR. I did move furniture over (at my expense) which I'm still using now I'm a citizen. If it is a consultancy (especially big 4) you'll work like a dog but it'll be great fun and you will get excellent experience. FWIW my employer at the time paid a fortune to a big4 consultancy to handle our PR application and it wasn't very well done (the consultant had v poor knowledge of migration rules and I used information from people on this site to guide her). My company didn't care about the cost cos they could claim it all back from me if I left within 2 years of sponsorship and us Brits were comparative bargains to locally sourced people. You'll be fine on $85k on your own though with a house share.

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