Friday, August 24, 2012

Allowability of Relocation Costs for Employees who Resign or are Fired by Contractors/Recipients

This situation has been receiving some attention recently as DCAA recommends disallowance of costs associated with relocation of staff that quit or are dismissed by contractors/recipient for cause within 12 months of being posted overseas.

The question arises as to whether relocation costs including airfares to and from post are allowable in those circumstances where the employee is fired for cause or released for non-performance since the meaning of "reasons beyond control" isnot defined in any of the regulations.