There are many reasons why a company may need an employee to relocate. Whether it’s to set up a new office, fill an open position, or for career development, employee relocation is not uncommon - particularly in today’s world. Alternatively, employees sometimes request to relocate themselves; this may be to work in a specific location or to move company offices to pursue a higher position.
In many cases, relocations are a smooth and positive experience. Packing up and moving to a new place will always have its challenges, but many employees find the process exciting. Last year, 59% of workers said they were more willing to relocate for work than in previous years.
Employee relocation is a big business, but ultimately, the success of each and every move comes down to the global mobility manager and the company’s relocation policy. When relocating employees, it’s crucial to first understand their rights - which we know can be difficult to navigate.
Here, we give our guide to employees’ rights during relocation.
First and foremost, employees’ relocation rights should be detailed in their contract, under what is known as a ‘mobility clause’. Employees who have a mobility clause in their contract are generally required to relocate - but this doesn’t mean they don’t have rights within the clause.
Those with a mobility clause present in their contract must follow through with the relocation - unless they deem it unreasonable. What counts as an unreasonable relocation?
What is meant by an ‘unreasonable’ move is not a strict or rigid definition. However, if an employee deems a move unreasonable, an employer must investigate. What is reasonable for one employee may be a deal-breaker for the next, so each situation must be addressed independently. In all cases, it is important to note that ‘reasonable’ and ‘unreasonable’ are open to subjective interpretation.
When determining what is reasonable, employers should consider:
The distance an employee has to travel to a new location The time it takes for an employee to travel The notice given to the employee The cost of a move The distance and length of the employee’s new commute The seniority and position of the employee
It is crucial to consider the effect of employee relocation on the quality of life of the moving employee. Any relocation that affects an employee's quality of life can be considered unreasonable - and attempting to carry out an unreasonable mobility clause could result in employees taking legal action against you.
An employee can take legal action against you at an employment tribunal. They may be able to claim constructive dismissal on the grounds that you have unfairly changed the terms of their contract (or mobility clause) which led them to resign.
Employees can also seek wrongful dismissal if you have dismissed them based on their refusal to relocate (which in their eyes is an unreasonable request).
As well as employees, employers also have rights when it comes to employee relocation. If an employer has a mobility clause in their contract, they do have the right to force a move. Equally, if an employee refuses a reasonable request, you have the right to make them redundant.
However, it’s usually in your best interest to come to a mutual agreement. There are other ways you can encourage an employee to feel that a move is reasonable, from providing financial assistance to employee accommodation. Many employers have appealing relocation packages in place to support those relocating and ensure they have everything they need for a successful move.
It’s important to remember that every employee’s personal situation is different, and what may be a reasonable relocation request for one may affect the quality of life for another. As an employer, you have a duty of care to uphold, and it’s crucial to consider this when asking employees to move.
In many cases, the prospect of moving or relocating is exciting for employees. However, if you do have someone who doesn’t want to move, it’s essential to know their rights.
At 3Sixty, we’re proud to be the leading employee accommodation booking platform. With over one million accommodation options in 60 different countries, we have housing options to suit all employees - whether a temporary relocation or extended stay while they find a new permanent home in their new location.
We understand that moving and traveling can be stressful and daunting for employees, which is why we have created a platform to meet their housing needs. For more information or start browsing employee accommodation options, visit our marketplace.