Your Rights when your Company Relocates

Workers are increasingly expected to be more mobile these days and in today's whirlwind of takeovers and mergers there sometimes seems to be precious little organisational stability. Companies can relocate for a number of reasons, such as consolidating properties after a merger to move two workforces into one place, taking advantage of cheaper overheads, or setting up a presence in a new territory to expand their market.

Is the Move a Blessing or a Curse?

If your company is moving to a location that you like, perhaps to an area where houses are cheaper or the schools are better, and you are being offered the expense of relocation, then you may feel that the upheaval presents an opportunity that you're willing to take.

But for many people, the uprooting of children from schools where they are settled and moving away from family is too much. It could be that house prices are more expensive in the new location, and employees would only be able to afford smaller houses, or perhaps not be able to buy at all. For these reasons, and many more, there can be many workers who will not want to make the move.

Can the Move be Forced?

But do employees have to move to where ever the company asks them to? The answer is that it depends on their Employment Contract, with many employees in the UK being subject to 'mobility clauses' in their contracts. These allow the employer to move employees not exactly on a whim, but with reasonable notice and optionally helping with the expense of the move.

If there is no 'mobility clause' in employees' contracts, then relocation will constitute a change of contract and the company will have to negotiate with employees to allow the change. This might end up with some form of package to aid with the cost of the move, but it depends on the job market, the level at which each person is employed, and the culture of the organisation. Union Members will be better protected in this situation as they can rely on the union for advice and support.

Do Redundancy Rules Apply?

If employees have no mobility clause and do not want to move, they can, in certain circumstances, be made redundant, if their job in the old region ceases to exist and the alternatives in the new region are not suitable. Deciding whether or not redundancy rules apply is a complex area, and people considering refusing to move should take independent legal advice before making their decision. People for whom redundancy does apply will be able to take the new job in the new location on a four-week trial before refusing it completely.

Special protection applies when the relocation comes about as a result of a takeover and the new proprietors want to move everybody. In this case, a set of regulations known as Transfer of Undertakings (Protection of Employment), more usually known as 'TUPE', come into play. These regulations protect employees' terms of employment and ensure that the new owners honour the terms and conditions of the previous employer, so it should make no difference that the relocation is driven by new owners.

Final Thoughts

There are two points worth finishing on. The first is that even if you have a mobility clause, an employer still cannot make unreasonable demands on you in terms of relocation. If you were asked, for example, to move to another country tomorrow, it's unlikely that an Employment Tribunal, if the dispute got that far, would consider that reasonable. The second is that as long as you are confident of getting another job and there is work available in your area, no one can make you move as you can simply resign. However, many people are not fortunate enough to be in that position.