Redundancy and Changes to Job Location

A change in your job location can have significant implications under UK employment law, especially when it leads to redundancy. When an employer relocates the workplace or changes where employees are required to work, this may trigger redundancy rights if the new arrangement means the previous role effectively no longer exists. This article explains how redundancy is defined in these scenarios, when a change of location can lead to redundancy, the relevance of mobility clauses, consultation requirements, time limits, and practical steps for both employees and employers.

What Counts as Redundancy When Job Location Changes?

Under section 139 of the Employment Rights Act 1996, redundancy includes dismissal because the employer has ceased, or intends to cease, to carry on the business at the place where the employee was employed, or because the employer's need for employees to do work of a particular kind in that place has diminished or is expected to do so. A change in the place of work that results in the employee's current role becoming unavailable can therefore qualify as redundancy. A shift in job location can constitute redundancy if it causes the employee's job as currently defined to disappear.

In legal terms, redundancy is not merely a job change but a situation where the role at the original location no longer exists. Employers cannot simply avoid redundancy by changing a workplace location unless the contract explicitly allows movement.

Employment Contracts and Mobility Clauses

What Is a Mobility Clause?

A mobility clause is an express term in a contract of employment that permits an employer to require an employee to work at different locations within specified limits, such as a town, county or region. If valid and enforceable, a mobility clause can allow an employer to relocate staff without triggering redundancy. However, the mere existence of a mobility clause does not automatically eliminate redundancy rights if a significant change of location occurs or if enforcing the clause would be unreasonable.

How Courts Interpret Mobility Clauses

Courts focus on the actual place where the employee worked before dismissal rather than all possible places they could be required to work under a contract. In High Table Ltd v Horst, the Court of Appeal held that an employee's place of work is based on factual employment location, not merely contractual possibilities. A mobility clause may be relevant to defining the place of work, but if an employee has historically worked at a specific site, relocation may still count as redundancy if the job role effectively ends at that location.

Reasonableness of Relocation

Even with a mobility clause, employers must exercise the clause within reasonable parameters. A very distant or materially burdensome relocation could still be unreasonable. Where there is no mobility clause, an employer cannot unilaterally enforce relocation without potentially breaching the contract; insisting on relocation against the employee's wishes may give rise to a claim for constructive dismissal if it amounts to a fundamental breach of contract.

When a Change of Job Location Leads to Redundancy

A relocation can give rise to redundancy in the following circumstances:

1. No Mobility Clause or Unreasonable Change: If the contract does not allow a change of location and the employer requires the employee to work at a new site, refusing to move can lead to redundancy because the employee's job at the original location has ceased.
2. Mobility Clause but Unreasonable Application: Even with a mobility clause, if the new location is deemed unreasonable (e.g. a significantly longer commute or personal hardship), the employee could refuse and seek redundancy.
3. Closure of Place of Business: If the business closes at the original location and there is no suitable role at the new location that the employee is willing and able to perform, redundancy rights can arise.

Consultation Requirements

When relocation leads to potential redundancy, the employer must follow a fair redundancy process, including consultation:

• Individual Consultation: All employees at risk must be consulted individually about why the change is proposed, how it affects their role and whether suitable alternatives are available.
• Collective Consultation: If 20 or more redundancies arise at a single establishment within 90 days (or under planned legislative changes, across multiple sites), collective consultation may also be required with employee representatives.

Failing to consult can result in protective awards from employment tribunals, and potentially unfair dismissal claims where qualifying service requirements are met.

Suitable Alternative Employment and Trial Periods

Before confirming redundancy due to a relocation, employers should consider whether suitable alternative employment exists. An offer of a different role at the new location may mitigate redundancy. When an alternative role is offered, employees are normally entitled to a statutory four‑week trial period to determine suitability. If the employee unreasonably refuses a suitable alternative, they may lose entitlement to statutory redundancy pay.

Redundancy Pay and Notice

If redundancy is confirmed because an employee cannot or will not move to the new location and the role at the original site no longer exists, statutory redundancy pay may be due to employees with two or more years' continuous service. The amount depends on age, length of service and weekly pay, subject to statutory caps. Employers must also give the appropriate notice period (statutory or contractual).

Unfair Dismissal and Constructive Dismissal Claims

An employee who has at least the qualifying period of service (generally two years) may claim unfair dismissal if the relocation and redundancy process was not fair or the reasons offered were not genuine. Where an employer imposes a location change that is a fundamental breach of contract, and the employee resigns in response, a constructive dismissal claim may arise. Cases such as University of Oxford v Humphreys illustrate that substantial changes to the terms and conditions-like compulsory relocation-can amount to or support a constructive dismissal claim.

Time Limits for Claims

Employees intending to bring a claim for unfair dismissal, redundancy pay, or constructive dismissal must usually do so within three months less one day from the effective date of dismissal, following a period of Acas Early Conciliation where required. Claimants should act promptly to protect their rights.

Practical Steps for Employees

1. Review your contract for mobility clauses and relocation terms.
2. Ask for written details of the relocation proposal and how it affects your role.
3. Discuss in consultation whether relocation is reasonable and whether alternatives exist.
4. Document communications and keep records of consultation meetings.
5. Seek advice from Acas, Citizens Advice or an employment solicitor if the relocation leads toward redundancy or if you believe terms are unreasonable.

Practical Steps for Employers

1. Check contracts for mobility clauses and whether they cover the planned relocation.
2. Plan redundancy and relocation strategies transparently and fairly.
3. Engage in meaningful consultation with employees, explaining the business reasons and offering suitable alternatives where possible.
4. Offer trial periods for alternative roles if proposing relocation.
5. Document decisions and ensure redundancy, notice and pay obligations are met where redundancy is confirmed.

Common Questions

Can an employer force me to move to a new location?
Only if there is a valid mobility clause in your contract and the change is reasonable. Otherwise, relocation may lead to redundancy or give rise to constructive dismissal claims.

Do I get redundancy pay if I refuse a relocation?
If your role at the original location has genuinely ceased and you are dismissed because you refuse an unreasonable relocation, you may be entitled to redundancy pay if you have sufficient service and have not unreasonably refused a suitable alternative.

What is a reasonable relocation?
There is no fixed definition; tribunals consider distance, travel options, personal commitments and whether the change makes employment impractical.

Key Takeaways

A change in job location can trigger redundancy rights when the role at the original place of work effectively disappears and the employee cannot or will not move to the new location. Employment contracts, particularly mobility clauses, play a central role in determining whether relocation leads to redundancy. Employers must consult meaningfully, consider alternative work and meet redundancy pay and notice obligations where redundancy arises. Employees should carefully review their contract, engage in consultation and seek advice if the relocation leads toward redundancy or unfair treatment.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.