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The Global Insight

Can I claim redundancy if my employer moves?

Author

James Williams

Updated on March 27, 2026

Your employer doesn’t have to offer you any compensation for relocating, unless it’s included in your contract of employment. If you turn down the offer of relocation and you’ve been offered compensation, you may not get a redundancy payment.

Can my employer make me move to another site?

If an employer moves the location of their business, employees should check their employment contract for a ‘mobility clause’. It means that employers can normally force their employees to move to places allowed by the clause, unless this is completely unreasonable.

How do companies handle relocation expenses?

For example, a company may be willing to pay $5,000 to each employee to help with moving costs. Another common strategy is that the company simply offers to reimburse employees for certain moving expenses, such as the cost of hiring movers, renting a storage unit and living in temporary housing.

Is relocation a reason for redundancy?

If you have always worked in one location, there may be a redundancy situation if you are required to relocate to another. A relocation exercise involving 20 or more employees is likely to trigger statutory collective consultation duties. Employees who are unable to relocate may qualify for a redundancy payment.

Can a company force you to move locations?

Yes, in some cases. Generally, unless an employment contract or a collective bargaining agreement states otherwise, an employer may change an employee’s job duties, schedule or work location without the employee’s consent.

Can a company make you pay back relocation?

Most relocation contracts require you to work for the new company for one to two years, and repay if you voluntarily leave, or are fired for cause.

How much should I ask for relocation expenses?

Potential employees will appreciate a generous relocation package, but sometimes that might not be in your company’s financial reach. Relocation packages can range in worth from $2,000 to $100,000. What services and the amount of money you decide to cover is entirely up to you and your company.

Can a company move if there is no mobility clause?

If you are relocating only a very short distance, then even if you don’t have a mobility clause in your employees’ contracts, a tribunal would probably consider a very short distance to be- suitable’. Of course if it were literally round the corner it is unlikely many employees would refuse to move anyway.

What happens to your rights if you move to a new company?

Read more on business transfers, takeovers and TUPE. The existing rights of all employees remain unchanged. They include employee contractual rights and their redundancy protection. In this case, the fact that the new owner introduces the relocation has no effect on your rights.

Can a company reimburse you for relocation costs?

If the employer moves that location, then reasonable reimbursement of costs is not a taxable benefit , certainly where the employee has to travel further than to his or her former location.

What should be the reasonableness of relocation terms?

The employer’s submission that the reasonableness of relocation terms need only be satisfied as a whole was rejected by the Court. Rather, it was held that private and individual circumstances are relevant.