Employee rights when a business relocates

When a business moves to another location, there may be particular employment rights business owners must consider throughout the process. In this blog, we’ll take a particular look at some of these considerations.

Some employment contracts contain a mobility clause which means that an employee can be compelled to move to a new business location if the circumstances are reasonable. For instance, it is unreasonable to ask an employee to move a considerable distance away with only one day’s notice. If a worker disputes that they are forced to move and this cannot be resolved between the employer and the employee, the case can be heard by an employment tribunal.

If there is no mobility clause and the employee wants to leave rather than move, they have the right to redundancy pay provided they match certain conditions, including length of employment and if refusing to move is reasonable. For example, if the new business location is nearby and easily reached by driving or public transport, it is likely to be seen as unreasonable to refuse to move.

Many employers recognise that it is expensive for staff to move home when the business relocates and offer financial compensation for this. However, this is not a legal requirement, unless it is specified in the employment contract.

If the business relocation decision is made due to a business being taken over by another company, employees’ existing rights remain in force, including redundancy entitlements.

Employers are responsible for helping their staff relocate, but for office removals in Merseyside, let Merseyside Movers & Storers take care of moving the business equipment, furniture, and documents to the new location.