What to include in a mobility and relocation clause
What to include in a mobility and relocation clause
There's no legal requirement to have a mobility and relocation clause in employment contracts but having this type of flexibility can be useful for operational agility and business growth. What should you include in such a clause?
Use of mobility clauses
A mobility and relocation clause is an example of a variation clause as it can give you the right to require an employee to work from a different location to their contractual place of work on a permanent or temporary basis. However, as with all variation clauses, reliance on it is subject to the wording being clear, precise and unambiguous, your compliance with the implied duty of trust and confidence in how you exercise it and the change not being indirectly discriminatory by reason of a protected characteristic, particularly sex if the relocation will involve a home move and the female employee isn't the main wage earner.
WHAT A MOBILITY CLAUSE COULD COVER
A transfer from one premises to another in the same city
A transfer to a different city or geographical area
Temporary working at other offices or clients' sites
International relocation
Benefits of mobility clauses
The key benefits of including a mobility clause in employment contracts include that: (1) it gives you operational flexibility, e.g. if you need to downsize your premises or expand into a new location and you want existing staff to move with the business or be redeployed; (2) it may enable you to avoid redundancy costs, if the employee's place of work changes and you have no mobility clause, if they don't consent to the move that can amount to a redundancy situation. Conversely, with a mobility clause you can implement the relocation by invoking that clause rather than following a redundancy process, provided you act reasonably and make it clear to staff at the outset that's what you are doing; and (3) temporary relocations can help you deal with emergencies and unforeseen events, such as due to floods or power failures.
Tip. Even without an express mobility clause, if you are moving offices within the same small town, you might be able to rely on an implied limited mobility clause to enforce the move. However, implied terms won't cover wider geographical relocations.
Clause drafting
When drafting a mobility clause, ensure that:
It covers both temporary and permanent relocations, if that's what you may need;
You are reasonable about the geographical extent of the relocation, i.e. it's not too wide in scope, taking account of the nature of your business and the employee's particular role, e.g. "within a radius of ten miles from your current place of work" or "within reasonable daily commuting distance of your home"
For permanent relocations, you provide that you will give reasonable prior notice of the move.
Tip. For significant relocations, such as where the employee will have to move home or have a much longer commute, always ensure you have good business reasons for invoking your clause. Consult with them and take account of their personal circumstances before requiring a move, ideally get them on side with the relocation. Also consider offering relocation expenses and look at other ways of mitigating the impact on them.
Include the right to require both temporary and permanent relocations if that's what you may need. Also be specific about the possible geographical locations, use clear language and include notice requirements for permanent moves. When invoking your clause, consult staff, act reasonably and consider offering support, e.g. relocation expenses.