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Relocation and redundancy
Hiya! Does anyone know if your company is obliged to offer a redundancy package if it chooses to relocate - and what rules apply? Thanks! Jackie
Hi Jackie
I guess the answer depends on where the company is relocating to. By law, the closure of a place of work is a redundancy situation. But if the business is moving next door, it's obviously perfectly reasonable to expect staff to move along with it. If, on the other hand, it's moving hundreds of miles away, a court is highly unlikely to say that the company should expect staff to transfer along with it - so in that scenario, yes, a redundancy payment would be made. The problem lies where the relocation is somewhere in the middle. What are the distances involved here? What (if anything) does your contract say about mobility/your normal place of work? As to terms, the basic statutory amount is a week's pay, capped at £260 per year of service (increasing a bit if you're over 40). Not exactly generous! Many employers offer more - though they're not legally obliged to. Plus, if the move isn't carried out fairly (e.g. consulting with you), then you may have scope to argue unfair dismissal on top.
Rachel
I guess the answer depends on where the company is relocating to. By law, the closure of a place of work is a redundancy situation. But if the business is moving next door, it's obviously perfectly reasonable to expect staff to move along with it. If, on the other hand, it's moving hundreds of miles away, a court is highly unlikely to say that the company should expect staff to transfer along with it - so in that scenario, yes, a redundancy payment would be made. The problem lies where the relocation is somewhere in the middle. What are the distances involved here? What (if anything) does your contract say about mobility/your normal place of work? As to terms, the basic statutory amount is a week's pay, capped at £260 per year of service (increasing a bit if you're over 40). Not exactly generous! Many employers offer more - though they're not legally obliged to. Plus, if the move isn't carried out fairly (e.g. consulting with you), then you may have scope to argue unfair dismissal on top.
Rachel
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