A member asked over 7 years ago

Company relocation redundancy

Hi,

Our office location is being moved from Bella Vista to Macquarie Park 26 km away. This move means I could potentially be out of pocket $1000 per month or lose twelve hours a week in travel which would seriously impact my ability to offer daycare support for my daughter.

Must the employer offer me redundancy pay due to the changes in my circumstance?


Law Advisor Research Team
Researchers at LawAdvisor

Hi there. It sounds like you are in a difficult position. If you are not able to accept the change in location, you may be entitled to redundancy pay or other financial compensation. Whether you are entitled to receive a payment will depend on whether the employer’s decision to relocate the place of work is permitted by your employment contract or otherwise reasonable. Note that compensation will not be available if you accept the change in location (i.e. you cannot claim compensation for the inconvenience of moving).

To determine whether your employee has the right to relocate your employment, you should look at the terms of the employment contract. If the contract states that a change in location is possible, then the employer is within their rights to change the place of work. Even if your employment contract does not say anything about relocation, the employer may still be able to relocate your place of work if it is specified in a company policy, it is a custom and practice for your area of work, the relocation is due to technological advancements, or you were informed about the possibility of relocating before starting employment.

However, if the contract suggests your worksite is exclusively Bella Vista, you may be able to claim compensation for what is called ‘repudiation’ of a contract. This means the employer has acted in a way that suggests they no longer want to abide by the terms of the original agreement. If you can prove your employer has repudiated the contract, you may be entitled to compensation. Note that you would need to end your employment with your employer as part of this claim.

A relevant question to be considered in your situation is whether the relocation is reasonable. The law will allow an employer to relocate the worksite if the relocation is reasonable. Factors that determine if a relocation is reasonable are: whether the new place of work provides similar employment opportunities, the amount of notice given before relocation, the accessibility to the new location including the distance travelled, whether the employer has made reasonable efforts to facilitate the transition, and the size and nature of the business. Also relevant is any disruption to employees’ private lives, work/family balance, and other personal inconveniences. If you can prove that the relocation is unreasonable, you may be entitled redundancy pay.

Suggested way forward

You should visit the Fair Work Ombudsman website (www.fairwork.gov.au) for further general information. As the legal outcome depends on the specific details of your situation, you should consider speaking to an employment lawyer who can advise you of your full legal options. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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