There is no prescription in the labour law regarding removal expenses and relocation allowances payable to or on behalf of an employee that changes the location of residence for work purposes. As such, relocation allowance and removal expenses incurred by or for an employee to take up employment or move to a new employment location is usually guided by staff policy or at the discretion of the employer.
The Personal Income Tax legislation exempts from tax the costs associated with an employee's move to take up new employment or relocate to a new employment location. However, for such expenses to be exempt, they must be deemed as reasonable (which is not defined).
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