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If your company moves to a new location, this also affects your employees: they will face longer commutes or may even have to relocate. An employer cannot always unilaterally impose a move; it depends on the distance, the agreements, and what is reasonable. Good consultation and a reasonable proposal are essential.
A move affects the employee
A new location can have benefits for the company — better facilities, closer to suppliers or customers. However, employees are faced with a longer commute, higher travel costs, or even the need to relocate. Good employership requires that you acknowledge these adverse consequences and mitigate them as much as possible.
Is the job a condition of employment?
Whether you may unilaterally change the workplace depends on what has been agreed. If a fixed position is stated in the contract, the change constitutes an adjustment to the terms of employment. You cannot simply impose this: in principle, it requires consent, or a valid modification clause and a compelling interest.
A reasonable proposal
Based on good employer-employee relations, you must make a reasonable proposal regarding a relocation, and the employee must, in principle, accept a reasonable proposal. Whether a proposal is reasonable depends on the additional travel time, any travel or relocation allowance, and the personal circumstances of the employee. Moving across the border is different from moving to another province.
What if the employee refuses?
If an employee refuses a reasonable proposal without good reason, this can have consequences. However, with an unreasonable proposal—for example, an unworkably long commute without compensation—the employee is in a strong position. Consultation, fair compensation, and a tailored approach prevent conflicts. Involve the Works Council in the event of major changes as well.
Frequently Asked Questions
Am I allowed to require my employees to move with me?
Not just like that. A change of workplace generally requires consent or a reasonable proposal, depending on the agreements and the distance.
Do I have to reimburse travel expenses or moving expenses?
Reasonable compensation makes a proposal more reasonable. For a greater distance, compensation is often necessary.
What if an employee refuses?
The employee is in a strong position regarding an unreasonable proposal; however, refusing a reasonable proposal without good reason can have consequences.
Arranging a business relocation properly?
Our legal experts advise on the consequences and record agreements in your employment contract or employee handbook. View our employment lawteam or schedule a free consultation.
