Redundancy?
Author
Discussion

SimonMaidenhead

Original Poster:

2,650 posts

232 months

Wednesday 24th October 2012
quotequote all
Quick summary, we've just been told that our branch is to close and we are to be relocated to our Reading branch ( current branch in Hammersmith). Now this is fine for me as I drive and it's a shorter commute, but a collegue lives in Wembley and doesn't drive and it would cost him at least £500 a month extra just to commute. This is not a viable option! Can anyone tell me where he stands legally as far as either being recompensed if he were to take the position or is he entitled to full redundancy if he was to turn the position down if they not to offer to contribute to the extra expenses?

TIA

Simon

Gargamel

16,346 posts

290 months

Wednesday 24th October 2012
quotequote all
He should have been presented with an either/or option.

However, some employment contracts have clauses which state - at this address (office) or other place of employment as agreed by the company (or something similar)

What should happen is that he is offered the new position in Reading on the same terms as current.

Or

Redundancy figure of X

Most companies will also allow you a period of say six months to try the new role with the Redundancy deal on the table, then if it doesn't work for you, you should still be able to take the package and leave.


SimonMaidenhead

Original Poster:

2,650 posts

232 months

Wednesday 24th October 2012
quotequote all
So, to clarify:-

1. he takes the position at Reading at has to accept that he has to pay another £500+ a month to commute out his current salary.

2. he takes a redundancy package of X



KrazyIvan

4,341 posts

204 months

Wednesday 24th October 2012
quotequote all
If he has not been offered redundancy then I wouldn't count on it.

Where I work they have just moved a load of staff from Staines to Letherhead and Stevenage to Reading. In both cases staff were told that it was either move office or resign, as both moves were considered to be a "reasonable commute".

Marf

22,907 posts

270 months

Wednesday 24th October 2012
quotequote all
KrazyIvan said:
If he has not been offered redundancy then I wouldn't count on it.

Where I work they have just moved a load of staff from Staines to Letherhead and Stevenage to Reading. In both cases staff were told that it was either move office or resign, as both moves were considered to be a "reasonable commute".
Yep, sounds to me if he doesn't accept it'll be constructive dismissal. They've not made the position redundant, they're just altering the terms of the contract to a new place of work.

ralphrj

4,079 posts

220 months

Wednesday 24th October 2012
quotequote all
https://www.gov.uk/employer-relocation-your-rights

http://www.workingrights.co.uk/Relocation.html


You need to establish if there is a 'mobility clause' on the employment contract.

anonymous-user

83 months

Wednesday 24th October 2012
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Marf said:
Yep, sounds to me if he doesn't accept it'll be constructive dismissal. They've not made the position redundant, they're just altering the terms of the contract to a new place of work.
Can you please indicate your understanding of constructive dismissal? Your post suggests to me that you may be misunderstanding the concept.

Marf

22,907 posts

270 months

Wednesday 24th October 2012
quotequote all
Breadvan72 said:
Marf said:
Yep, sounds to me if he doesn't accept it'll be constructive dismissal. They've not made the position redundant, they're just altering the terms of the contract to a new place of work.
Can you please indicate your understanding of constructive dismissal? Your post suggests to me that you may be misunderstanding the concept.
You may be right!

My understanding of constructive dismissal is when the company makes a material change to your contract which you do not accept, ergo your employment ends but you've not resigned per se and you've not been fired or made redundant.

anonymous-user

83 months

Wednesday 24th October 2012
quotequote all
Constructive dismissal occurs when an employer repudiates the contract of employment and the employee leaves in response to the repudiation.

Resigning in response to a change in terms could give rise to a constructive dismissal claim in some cases but not in others, depending on the nature of the change.

In the present case, the key issue is whether the contract of employment contains a mobility clause. If it does not, then the employee's job will become redundant when the employer moves.



Marf

22,907 posts

270 months

Wednesday 24th October 2012
quotequote all
Understood, thanks. Every day's a school day!

anonymous-user

83 months

Wednesday 24th October 2012
quotequote all
You are welcome. I add that an employee is either dismissed, or resigns. There is no half way house. Redundancy is a dismissal, and so is a constructive dismissal.

Cmof

27 posts

257 months

Thursday 25th October 2012
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Breadvan72 said:
Constructive dismissal occurs when an employer repudiates the contract of employment and the employee leaves in response to the repudiation.

Resigning in response to a change in terms could give rise to a constructive dismissal claim in some cases but not in others, depending on the nature of the change.

In the present case, the key issue is whether the contract of employment contains a mobility clause. If it does not, then the employee's job will become redundant when the employer moves.
Even if there is a mobility clause, the proposed change of location must be reasonable in all the circumstances to negate a redundancy situation.

Frimley111R

19,168 posts

263 months

Friday 26th October 2012
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KrazyIvan said:
Where I work they have just moved a load of staff from Staines to Letherhead and Stevenage to Reading. In both cases staff were told that it was either move office or resign, as both moves were considered to be a "reasonable commute".
Stevenage to Reading? A reasonable commute? Blimey! I guess it depends on your definition of 'reasonable' and you salary.

anonymous-user

83 months

Friday 26th October 2012
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Note Home Office v Evans. Reasonable reliance on a mobility clause can negate a redundancy situation. In that case, the move was from Waterloo to Heathrow.


http://www.bailii.org/ew/cases/EWCA/Civ/2007/1089....

Cmof

27 posts

257 months

Friday 26th October 2012
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United Bank v Akhtar [1989] is still good law in that the implied term of trust and confidence can be breached by an unreasonable request to move an employee, despite a contractual mobility clause.


anonymous-user

83 months

Friday 26th October 2012
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That is right. In that case the employer did not offer relocation expenses etc. The OP's case might fall somewhere between that case and the Evans case.

NorthernBoy

12,642 posts

286 months

Saturday 27th October 2012
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SimonMaidenhead said:
So, to clarify:-

1. he takes the position at Reading at has to accept that he has to pay another £500+ a month to commute out his current salary.

2. he takes a redundancy package of X
Or 3, he moves nearer to the new job, or learns to drive, or gets a scooter.

davepoth

29,395 posts

228 months

Saturday 27th October 2012
quotequote all
How has he worked out £500 more a month? A season ticket on the train from Wembley to Reading is £3772 a year, and a season ticket on the underground for Zone 1-4 (Wembley to Hammersmith) is £1672. So the difference is £2100, or £175 a month. Still a lot of money, but nowhere near as much.

anonymous-user

83 months

Saturday 27th October 2012
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Is the employer offering any assistance with expenses?

SimonMaidenhead

Original Poster:

2,650 posts

232 months

Tuesday 30th October 2012
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davepoth said:
How has he worked out £500 more a month? A season ticket on the train from Wembley to Reading is £3772 a year, and a season ticket on the underground for Zone 1-4 (Wembley to Hammersmith) is £1672. So the difference is £2100, or £175 a month. Still a lot of money, but nowhere near as much.
Can you please post a link as to where you got this information from, as I cannot find it anywhere.


Cheers