Lauren Kilbride, Solicitor in the Employment Law team, discusses the key legal considerations around when an employer changes their employees’ place of work and how both parties can navigate the process effectively.
What to consider when an employer moves
When a company relocates, the question often arises: can the employer require employees to move with them? The answer largely depends on the terms set out in the employment contract and the ‘reasonableness’ of the request.
Mobility clauses in employment contracts
A key factor is whether the employment contract contains a mobility clause. This clause outlines the employer’s right to require the employee to work at different locations, and may specify:
- The geographical scope of possible relocations
- The notice period an employee will receive before being required to move
- Any arrangements regarding costs or support related to the move
However, having a mobility clause does not automatically entitle the employer to relocate an employee without limit. Such clauses are subject to an implied term of ‘reasonableness’.
Understanding ‘reasonableness’
If a dispute about a mobility clause arises, tribunals will consider whether the employer’s request to relocate is reasonable. Factors include:
- The distance and practicality of the proposed move
- The employees’ personal circumstances, such as family commitments or health issues
- The notice period provided by the employer
- Whether any support or compensation is offered to the employee
Each situation is unique, so clear drafting of mobility clauses and good communication between employer and employee are important to managing expectations.
What happens if a relocation is refused?
If an employee refuses a reasonable relocation request under a valid mobility clause, an employer may consider disciplinary action. This could include dismissal, but employers must ensure they follow a fair and transparent procedure to mitigate the risk of claims for unfair dismissal.
Conversely, if a relocation is unreasonable or imposed without proper consultation, an employee may have grounds to refuse the move. In some cases, refusal may lead to claims for constructive unfair dismissal if the employer’s conduct breaches the implied term of trust and confidence.
If the relocation results in the elimination of the employee’s role at the original location, redundancy may arise. This is a legally complex area, and both employers and employees should seek advice when faced with such circumstances.
If you’re an employee and your employer is relocating this article will help: Can my employer change where I work?, or feel free to get in touch for advice.
Relocation matters can have significant consequences for both employers and employees. If you are uncertain about your rights or obligations regarding a change of workplace, contact our employment team on 03456 465 465 or email enquiries@rotherabray.co.uk
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice, please contact us on 03456 465 465 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers.
