Relocation

Q: What is a reasonable travelling distance to expect an employee to accept when a company relocates?

A: A company relocation is likely to be a redundancy situation, since the employer is ceasing or intending to cease business “in the place where the employee was employed”. (section 139 of the ERA).

The question of increased travel will be decided in accordance with whether:

* looking at it objectively, the new location constitutes a suitable alternative; and

* looking at it subjectively (taking into account the individual’s circumstances and type of work), the employee is reasonable in refusing to move.

For example, in an industry where it is common for employees to have a long drive to work, it may be seen as reasonable to travel a longer distance to work — and there may be an expectation that very senior members of staff would relocate.

In Bass Leisure Ltd v Thomas [1994] IRLR 104, the EAT held that an employee’s domestic commitments made it unreasonable to require her to work 20 miles away.

If the contract contains a “mobility clause” allowing the employer to change the place of work, the employee may (depending on whether the term is clear or unambiguous) be bound by this. Even if the term is clear it must be exercised reasonably, for example by giving adequate notice (United Bank Ltd v Akhtar [1989] IRLR 505).