Relocation Policy

Document Control

Policy Owner: People Governance

Version: 3

Approved by: Collective Bargaining Date Approved: 23 July 2014

Unit

Effective date: 1 November 2014

Last Reviewed/Revised 2 December 2015

1. Policy Aim

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The aim of the policy is to ensure that transfers are correctly processed and documented. It also aims
to ensure as far as possible that employees who are required to relocate due to the Banks
operational requirements are not placed in a financially worse-off position as a result of the move.

2. Qualifying Criteria

The policy applies to employees who apply for positions and to those whom the Bank has transferred.
The policy does not apply to employees who request transfers.

An employee will qualify for relocation costs provided:

They are permanent employees based in South Africa and;

The distance between the old branch/office and the new branch/office is 75 kilometres or
more by road and;

They are relocating their residence.

3. Relocation Provisions

The following provisions are applicable to permanent employees provided the above criteria are met.

3.1 Transfer Allowance

Employees receive a once off allowance equivalent to 15% of the annual guaranteed package of their
new role, with a minimum of R20000-00 and a maximum of R60000-00 payable through payroll. The
allowance should cover costs such as payments for curtaining, school uniforms, transportation and
kennelling of pets, telephone installation, TV aerial installation, club fees and registration and
transportation of private vehicles, etc.

The transfer allowance must be claimed within 6 (six) months of accepting the offer.

3.2 Removal and Storage of Household Goods

3.2.1 Employees are expected to observe economy. Competitive tenders for the removal of
household effects should be obtained and discussed with the branch/department manager before any
offer is accepted. Tenders should include the cost of storage, where necessary.

3.2.2 When considering tenders, the Bank's own customers should be supported wherever possible,
provided the tender is competitive.

3.3 Transportation Claims

Claims for personal transport should be submitted to the new Business Unit.

3.4 Accommodation

3.4.1 Temporary Accommodation

The Bank will bear the cost of temporary accommodation from the first day of relocation for a
maximum period of up to 6 weeks if required and agreed to with the manager. FNB Conference and
Learning Centre will accommodate employees on an adhoc basis where possible. Prices are available
on request.

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FNB Conference and Learning Centre
114 Grayston Drive, Sandown, Sandton
Telephone: +27 11 269 8000

3.4.2 Occupational Rental/Interest

When an employee sells their house and purchases another, the Bank will meet the difference
between occupational rentals paid and received, less normal housing loan repayments to the date on
which the bond over the property sold is cancelled. The terms of the limit sheet will also apply.

3.5 Legal costs

Where an employee is required to sell their property the Bank will bear the legal costs incurred on the
next property the employee purchases together with the reimbursement of agents commission to a
maximum of 6.5% (inclusive of VAT) of the sale price. Any commission in excess of 6.5% will be for
the account of the employee. Terms and conditions apply, see 4.5 below.

All legal costs must be claimed within 12 months of accepting the offer.

3.6 Insurance of Household and Personal Effects in the case of relocation

3.6.1 Where the transfer of an employee involves a change of residence within the Republic of South
Africa, as well as all countries where FirstRand operates, furniture, personal belongings and
household effects in transit and in incidental storage may be covered under the FirstRand Staff Transit
Insurance Policy.

3.6.2 Limits, conditions and exclusion apply to this insurance policy. The Risk Insurance department
must be contacted prior to the departure to ensure that the relocation is covered by the policy. Please
advise Risk Insurance at least 2 weeks prior to the move.

3.6.3 In addition, a full valued inventory must be submitted to the relevant HR area prior to despatch.
This requires the articles to be covered and the replacement rand values. Failure to lodge an
inventory or to describe correctly the class and value of the items to be insured will invalidate a claim
and any resultant loss will have to be borne by the employee.

3.6.4 A packing list of the articles being moved needs to be completed by the carrier, and a copy kept
by the employee in the event of a claim having to be submitted.

3.6.5 Where limits need to be increased, the business unit for which the transfer is being made will be
liable for the insurance cost associated with this.

3.6.6 The Risk Insurance Framework can be viewed using the link below:

https://firstpoint.firstrand.co.za/sites/entrprisk/gov/Group%20Risk%20Framework/First%20Party
%20Insurance%20Risk%20Framework%202015%2016%20Final.pdf

3.7 Boarding School

Where an employee, as a result of the transfer, incurs additional expenses for boarding school fees
(that is, the child was not in boarding school before), applications for financial assistance may be
submitted to the Business Unit for consideration.

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4. Terms and Conditions

4.1 Employees transferred at their own request, are to meet all their own expenses.

4.2 Where both spouses/partners are transferred the Bank will only meet the relocation costs of ONE
of the spouses/partners.

4.3 Should the employee leave the employ of the Bank within 18 months of the transfer, they will be
required to refund all monies paid to them or on their behalf.

4.4 An employee will only be eligible for the provisions of this policy once in every 12 month period, if
an employee relocates more than once in a 12 month period all costs will be for the employees
account. However where the bank has instructed an employee to relocate due to operational
requirements the employee will still be eligible for the provisions of this policy.

4.5 With respect to the legal costs referred to in 3.5 these ,costs will not be paid if the employee does
not sell the primary residence but wants to purchase a secondary residence nor will it apply if the
employee decides to let (rent out) their primary residence and purchase a secondary residence.

4.6 Reimbursement of commission is only applicable to the sale of a house and not the purchase of a
house.

4.7 Transfer allowance claims must be made within six months of accepting the offer. Failure to do so
will result in the allowance not being paid.

4.8 All legal costs must be claimed within 12 months of accepting the offer. Failure to do so will result
in the legal costs not being paid.

5. Out of Town Relieving Expenses

5.1 Claims

When employees are required to undertake temporary relief duties in another town, their claims for
out-of-pocket expenses should be claimed via the subsistence allowance. If an employee should save
some expense at his permanent residence when he is on relief duty elsewhere, such saving must be
shown as a reduction against the expenses claimed. Where there has been no saving of expense at
base, a statement to this effect should be specified.

6. HR Transfer Process

6.1 Remuneration

6.1.1 If an employee is transferred, the branch/department where the employee is located on the 1st
business day of the month will be responsible for the remuneration of the employee.

6.1.2 When an employee is transferred on promotion, his revised remuneration will become applicable
from the date he reports to the new branch/department.

6.1.3 If the employee avails of leave, attends a training course or performs relief duty at yet another
branch/ department between the time he leaves his former branch/department and the time he reports
for duty at the receiving branch/department, he will for the purpose of sub-paragraph 6.1.1 above, be

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regarded as having left his former branch/department on the day such leave, training course or relief
duty terminates.

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