Relocation Clauses in Employment Contracts

Relocation and mobility clauses give employers flexibility to move employees between locations.

Types of Relocation Clauses

Wide Mobility Clause

"You may be required to work at any location within the UK as determined by the Company from time to time."

Issues:

• May be challenged as unreasonable
• Courts may imply geographical limits
• Must still be exercised reasonably

Geographically Limited Clause

"You may be required to work at any Company location within 30 miles of your current workplace."

Benefits:

• Clear expectations
• More likely to be enforceable
• Reasonable scope

Named Locations Clause

"Your place of work will be either our London office or our Manchester office, as directed by the Company."

Benefits:

• Specific and certain
• Employee knows possible locations
• Easier to enforce

Exercising Mobility Clauses

Even with a mobility clause, employers must:

Give Reasonable Notice

• Allow time to make arrangements
• Consider employee's personal circumstances
• Longer notice for greater distances

Act Reasonably

• Have genuine business reason
• Not use as punishment or to force resignation
• Consider alternatives

Consult with Employee

• Discuss impact and concerns
• Explore whether adjustments possible
• Consider personal circumstances

Without a Mobility Clause

If there's no mobility clause:

• Work location is an implied term
• Relocation requires employee consent
• Refusal cannot usually be treated as misconduct
• Employer may need to make redundancy

Implied Mobility

Courts may imply limited mobility where:

• Role inherently requires travel
• Previous relocations accepted
• Industry practice involves mobility

Redundancy and Relocation

Offer of Suitable Alternative Employment

When relocating involves redundancy:

1. Employer must offer suitable alternative role
2. Must be offered before redundancy takes effect
3. Employee can trial for 4 weeks

Unreasonable Refusal

Refusing suitable alternative employment can affect redundancy pay:

• If refusal is unreasonable, redundancy pay may be lost
• What's reasonable depends on circumstances
• Distance and commute time are factors

Trial Period

Employees can trial the new role for 4 weeks:

• If it doesn't work out, redundancy rights preserved
• Can agree longer trial period in writing
• Must give relocation genuine attempt

Financial Support for Relocation

Common relocation benefits:

Benefit	Typical Provision
Moving costs	Actual costs up to £X
Temporary accommodation	Up to 3-6 months
Travel to view properties	Reasonable expenses
Legal fees	For property sale/purchase
Disturbance allowance	Lump sum (often £2,000-5,000)

Tax Treatment

• Most relocation expenses up to £8,000 are tax-free
• Must be qualifying relocation expenses
• Employee must move to be closer to new workplace

Refusing Relocation

With Mobility Clause

Refusing may be:

• Breach of contract
• Grounds for dismissal
• Potentially fair if clause exercised reasonably

Without Mobility Clause

• Usually cannot be required to relocate
• Employer may need to make redundancy payment
• May be constructive dismissal if imposed

Best Practice for Employers

1. Include appropriate clause at recruitment stage
2. Consider scope carefully - too wide may be unenforceable
3. Give reasonable notice of relocation
4. Consult genuinely with affected employees
5. Offer support for relocation costs
6. Document decisions and reasons
7. Consider alternatives before requiring relocation

Employee Considerations

1. Check contract for mobility provisions
2. Understand scope of any mobility clause
3. Raise concerns early in consultation
4. Document impact on personal circumstances
5. Consider position before refusing outright
6. Seek advice if facing redundancy