CW 16B Accommodation expenditure: out-of-town secondments and projects
When this section applies
(1)
This section applies when—
(a)
the employment duties of an employee require them to work at a distant workplace on an out-of town secondment or a project of limited duration; and
(b)
the period of the employee’s employment or service at the distant workplace is a period of continuous work; and
(c)
the employer—
(i)
provides accommodation for the employee for a period that falls within a time limit described in section CW 16C:
(ii)
incurs expenditure on the employee’s accommodation at the distant workplace for a period that falls within a time limit described in section CW 16C:
(iii)
incurs expenditure on the employee’s accommodation for necessary travel to and from the distant workplace in connection with the performance of their duties.
Exclusions
(2)
This section does not apply—
(a)
to an amount that is the value provided or expenditure incurred by the employer when, under the terms of the their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount:
(b)
in relation to an out-of-town secondment, to a new employee of the employer.
Exempt income
(3)
The amount that is the value provided or expenditure incurred by the employer is exempt income of the employee.
Estimated expenditure
(4)
For the purposes of subsection (1)(c)(ii),—
(a)
an employer may make, for a relevant period, a reasonable estimate of the amount of expenditure likely to be incurred on an employee’s accommodation; and
(b)
the amount estimated is treated as if it were the amount incurred during the period to which the estimate relates.
Definitions for this section
(5)
In this section and sections CW 16C to CW 16F, CW 17CB, CZ 29, and CZ 30 (which relate to accommodation expenditure), as applicable,—
distant workplace, for an employee, means a workplace that—
(a)
is another workplace of the employee; and
(b)
is not within reasonable daily travelling distance of their residence
out-of-town secondment means the placement of an employee at a distant workplace—
(a)
because the employment duties of the employee require them to work at the distant workplace for the performance of those duties; and
(b)
for a period that, in their employer’s expectation at the start of the period of secondment, will last for no more than 2 years
period of continuous work—
(a)
means a period when an employee has ongoing duties of employment that must be performed to a significant extent at a distant workplace, requiring the employee to stay at the distant location for 1 or more nights; and
(b)
includes the employee’s time away on leave or other breaks for personal reasons, weekend breaks, required rest periods, and other similar periods
project of limited duration means a particular work project—
(a)
whose principal purpose is to create, build, develop, restore, replace, or demolish a capital asset; and
(b)
which is carried out under a contract between an employer and 1 or more persons who are not associated with the employer; and
(c)
in relation to which the engagement of an employee of the employer at the distant workplace—
(i)
has, at the outset, clear start and end dates; and
(ii)
involves work that, apart from incidental activities, is undertaken solely for the purposes of the project; and
(iii)
in their employer’s expectation at the start of the project, will last for a period of no more than 3 years
workplace means a particular place or base—
(a)
at which an employee performs their employment duties; or
(b)
from which an employee’s duties are allocated.
Defined in this Act: accommodation, amount, associated person, company, distant workplace, employee, employer, employment, employment income, exempt income, group of companies, out-of-town secondment, pay, period of continuous work, project of limited duration, workplace
CW 16C Time periods for certain accommodation expenditure
Time limits: out-of-town secondments
(1)
Section CW 16B applies for an employee on an out-of-town secondment to the value provided or expenditure incurred for a period that starts on the date on which the employee begins to work at a distant workplace, and ends at the earliest of the following dates:
(a)
the date that is 2 years from the date on which they began work at the distant workplace:
(b)
the date on which the out-of-town secondment ends:
(c)
the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:
(d)
the date on which the employer’s expectation regarding the length of the period changes, and the total period is expected to be more than 2 years.
Time limits: projects of limited duration
(2)
Section CW 16B applies for an employee on a project of limited duration to the value provided or expenditure incurred for a period that starts on the date on which the employee starts work at a distant workplace, and ends at the earliest of the following dates:
(a)
the date that is 3 years from the date on which the employee began work on the project at the distant workplace:
(b)
the date on which the employee’s participation in the project at the distant workplace ends:
(c)
the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:
(d)
the date on which the employer’s expectation regarding the employee’s involvement in the project changes, and the total period of their involvement in the project is expected to be more than 3 years.
When subsection (4) applies: time limits when expectations change
(3)
Subsection (4) applies for a placement of an employee at a distant workplace when—
(a)
the employment duties of the employee require them to work for a period of time at the distant workplace for the performance of those duties; and
(b)
the terms of the placement of the employee meet the requirements of an out-of-town secondment or project of limited duration, as applicable, other than the requirement related to the limitation on the length of the period for which the employee is to remain at the distant workplace; and
(c)
the expectation of their employer at the start of the period is that the duration of the secondment or project will exceed the applicable time limit; and
(d)
during the period, the employer revises their expectation of the period for the secondment or project, reducing its expected duration, and as a consequence, the requirements of an out-of-town secondment or project of limited duration, as applicable, are fully met.
Period of exemption
(4)
Section CW 16B applies to the amount that is the value provided or expenditure incurred by the employer for the remainder of the period for which the employee is required to remain at the distant workplace under the out-of-town secondment or project of limited duration. For these purposes, the period starts on the date on which the employer revises their expectation, and ends at the earliest of the dates referred to in subsection (1)(a) to (d) or (2)(a) to (d), as applicable.
Time limits in exceptional circumstances
(5)
A time limit does not apply if exceptional circumstances arise beyond the control of the employer and employee that require the employee to remain at the distant workplace after the period expires. Examples are a natural disaster or medical emergency. However, an extension of time must be limited to the period for which the employee is unable, because of the exceptional circumstances, to leave the distant workplace.
Avoidance provision
(6)
For the purposes of determining whether a time limit under this section applies, a break in a period of continuous work at a distant workplace is ignored if a reason, that is more than incidental, for the cessation of the employment or service is to allow a further period of exemption under section CW 16B or CZ 29 (Accommodation expenditure: Canterbury earthquake relief).
Defined in this Act: accommodation, amount, distant workplace, employee, employer, employment, out-of-town secondment, pay, period of continuous work, project of limited duration, workplace
CW 16D Accommodation expenditure: conferences and overnight stays
When this section applies
(1)
This section applies when—
(a)
the employment duties of an employee require them to attend a work-related meeting, conference, or training course that entails an overnight stay; and
(b)
the period for which the employee’s attendance is required is a period of continuous work; and
(c)
their employer—
(i)
provides accommodation for the employee for the period of their attendance:
(ii)
incurs expenditure on the employee’s accommodation for the period of their attendance:
(iii)
incurs expenditure on the employee’s accommodation for necessary travel in connection with the performance of their duties for the period of their attendance.
Exclusions
(2)
This section does not apply to an amount that is the value provided or expenditure incurred by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount.
Exempt income
(3)
The amount that is the value provided or expenditure incurred by the employer is exempt income of the employee.
Extended meaning of period of continuous work
(4)
For the purposes of this section, a period of continuous work may include a period in which an employee’s duties of employment require them to stay for 1 or more nights at a location that is not distant from their regular workplace.
Defined in this Act: accommodation, amount, employee, employer, employment, employment income, exempt income, period of continuous work
CW 16E Accommodation expenditure: new employees
Despite section CW 16B(2)(b), section CW 16B applies to a new employee in the following circumstances:
(a)
when the employer intends, at the time of employing the new employee, that the new employee would work permanently at a workplace of the employer that is not a distant workplace, but instead requires the employee to work temporarily at another of their workplaces that is a distant workplace:
(b)
the new employee is on an out-of-town secondment to work—
(i)
for a person with whom the employer has a continuing commercial affiliation or working relationship, and for the purposes of section CW 16B, the person is treated as the employer; and
(ii)
for a period that is expected to be no more than 2 years; and
(iii)
at a distant workplace that is the person’s workplace.
Defined in this Act: distant workplace, employee, employer, out-of-town secondment, workplace
CW 16F Accommodation expenditure: multiple workplaces
When this section applies
(1)
This section applies when—
(a)
the employment duties of an employee require them to work on an ongoing basis at more than 1 workplace; and
(b)
1 or more of those workplaces is a distant workplace; and
(c)
in connection with the employee’s employment or service, their employer provides accommodation or pays an amount for the employee’s accommodation at the distant workplace.
Exclusions
(2)
This section does not apply—
(a)
to an amount that is the value provided or the payment by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount:
(b)
when the employee has 2 workplaces and 1 of those workplaces is a home office.
Exempt income
(3)
The amount that is the value provided or the payment by the employer is exempt income of the employee.
Defined in this Act: accommodation, amount, distant workplace, employee, employer, employment, employment income, exempt income, pay, workplace