Your priority should be retaining key personnel and maintaining a positive and productive workforce through the relocation process while reducing legal risk exposure and ensuring cost control. This demands an approach that complies with employees’ relocation rights and is supportive and understanding of the concerns and reluctance you may face from affected employees.
Relocation rights are generally specified in the employment contract, under what is known as a ‘mobility clause’. Employees who have a mobility clause in their contracts are generally required to relocate, providing the employer acts on the clause in a ‘reasonable’ manner.
In determining what is reasonable, employers should consider factors such as the distance the employee has to travel to the new location, the time it takes for the employee to travel, the notice given to the employee, and the seniority and position of that individual. Essentially, any relocation which results in a decline in the employee’s quality of life could be deemed unreasonable.
Attempting to exercise a mobility clause in an unreasonable manner may result in the employee taking legal action against you at an employment tribunal. The employee may be able to claim constructive dismissal on the grounds that you have unfairly altered the terms of their contract in a way which led them to resign (i.e. by failing to act on the mobility clause in a reasonable way). Alternatively, they may seek to claim wrongful dismissal if you have dismissed them based on their refusal to relocate.
Discrimination is another important risk factor with relocations. Specifically, an employee or particular group of employees should not be adversely affected by a relocation. Employers are required to consider the reasonable requirements of any employees with disabilities and must resolve disabled access issues in respect of the new location’s building and facilities.
Our experienced HR consultants and employment law specialists offer guidance and support to employers in relation to employees’ relocation rights. We have extensive experience in helping employers identify and manage the HR and legal risks, providing advice that protects your best interests while supporting the commercial drivers behind the process.
If you have a question or need guidance on employees’ relocation rights or the HR and employment law aspects of any kind of organisational restructuring or workforce change, please contact us.
