Key Takeaways

  • Mobility clauses allow employers to change an employee’s workplace under certain conditions.
  • The reasonableness of a relocation depends on the job role, notice period, and personal circumstances.
  • Enforcement of mobility clauses requires fairness, clear wording, and often consultation with employees.
  • Employees may still be entitled to redundancy pay if relocation demands are unreasonable or poorly handled.
  • Legal cases show that broad or vague mobility clauses can be deemed unenforceable.
  • Special rules may apply for protected employees (e.g., union reps or pregnant workers).

A mobility clause in a contract is a contractual term that enables an employer to change an employee's place of work, either temporarily or on an ongoing basis. Employment contracts must include a place of work. For the employer, a mobility clause grants flexibility and allows them to demand that the employee change their location in order to work.

Mobility clauses may be used in various scenarios, such as:

  • The employee is occasionally required to travel.
  • The employee works regularly at different sites.
  • The employee works regularly at one site, but the employer is possibly interested in relocating the employee or the entire company without difficulty.

What Kind of Mobility Is Reasonable?

A contract might include "reasonable" mobility, but what exactly does "reasonable" mean? The definition depends entirely on the nature of the job. For example, it's completely reasonable to require a plumber to travel when completing outgoing calls, as it's a necessary and expected part of the job. However, for a desk-based employee who has never been required to work outside of their office, sudden changes in their work location can cause issues.

Use caution if you suddenly want an employee of yours to frequent another site on a regular basis. Even if their contract contains a mobility clause, they might argue that adding regular travel into their work responsibilities comprises an unreasonable change to their contractual terms.

Drafting and Enforcing Mobility Clauses

A well-drafted mobility clause must strike a balance between business flexibility and employee rights. To be enforceable, a mobility clause should:

  • Be clearly worded, defining the geographical scope and types of relocation (temporary or permanent).
  • Include a requirement that any relocation must be reasonable in the circumstances.
  • Provide advance notice of relocation to give employees time to adapt.
  • Avoid excessive vagueness that could make the clause void for uncertainty.
  • Take into account the personal situation of employees, including commute distance, childcare responsibilities, and health issues.

Courts will assess the enforceability of mobility clauses based not only on the written contract but also on how fairly an employer applies the clause in practice​.

Employers should also engage in consultation where possible before exercising a mobility clause to demonstrate reasonableness and reduce legal risks.

Redundancy

If a workplace closes, a redundancy situation can arise if the workplace is where the employee actually works, not where they might be required to work under their employment agreement. However, in a redundancy situation where an employer has the contractual right to enforce a mobility clause, there is no need to fire the employee and provide redundancy payment if the employer has exercised the mobility clause.

Think your employer can't force you to relocate against your wishes? Think again. If your employment contract contains a mobility clause, it can require you to move to another location, according to the terms and limits written in the contract. If you refuse to relocate, your employer might be allowed to withhold your redundancy payment.

If your contract does not contain a mobility clause, you will likely be able to refuse to move and still be entitled to redundancy payment. However, if the new location is close (perhaps a few miles), you might still lose the payment if your refusal to accept this suitable alternative employment appears unreasonable.

When Can Employees Refuse Relocation?

Even where a contract contains a mobility clause, employees may lawfully refuse relocation if the request is deemed unreasonable. Key factors courts consider include:

  • Distance and travel time: A move that dramatically increases commute time or costs may be seen as unreasonable.
  • Impact on personal life: Relocation that severely disrupts family life, caregiving duties, or health considerations could make a refusal reasonable.
  • Terms of the clause: If the clause is too broad or vague, it may not be enforceable.
  • Employer conduct: Abrupt or poorly communicated relocation demands may undermine the employer’s legal position​​.

If a tribunal finds that refusal was reasonable, the employee may still qualify for redundancy pay.

Redundancy: A Case Example

In the case of Kellogg Brown & Root (UK) Ltd v. Fitton, the employer utilized a contractual mobility clause that stated that employees could be moved to any office located in the United Kingdom or even overseas, except in exceptional circumstances. Employees refused to move to Leatherhead from their Greenford workplace, which was closing. As a result, they were dismissed from their jobs.

The Employment Tribunal stated that these employees had been unfairly fired for redundancy. The case was appealed, and the EAT decided that the dismissals, which occurred in the context of a redundancy situation, were actually a result of employee misconduct, since they had refused to follow the instructions to move.

Nonetheless, the EAT determined that the employees were unfairly dismissed, due to the following reasons:

  • The mobility clause was too broad to be enforceable.
  • The employer's request to relocate was unreasonable, as the new location would have added 20 to 30 hours per week of travel time.
  • The employees' refusal to travel to the new location was reasonable considering their personal life circumstances meant that the change was very impactful and the employer had not taken any steps to mitigate such a big change in their lives.

This case shows the need for employers to examine the breadth of their contractual mobility clauses to make sure they are not unnecessary. The employer might have won this case if the mobility clause was reasonable. This decision also demonstrates that a mobility clause may be exercised only under certain circumstances. An employer must have a good reason for making significant relocation requests, must give sufficient notice of the arrangements, and must look at ways to minimize the impact on their employees.

Mobility Clauses and Protected Employees

Special protections apply to certain employees when enforcing mobility clauses, including:

  • Pregnant employees or those on maternity leave.
  • Employee representatives, such as union delegates or elected workplace representatives.
  • Disabled employees, where relocation could be discriminatory unless reasonable accommodations are provided.

Employers must take extra care and consult with these categories of employees before requesting a move. Failure to consider their circumstances could result in claims of unfair dismissal or discrimination​.

Frequently Asked Questions

  1. Can my employer relocate me without my consent?
    If your contract contains a mobility clause, your employer may be able to relocate you. However, the relocation must be reasonable, and personal circumstances must be considered.
  2. What happens if I refuse to relocate under a mobility clause?
    If your refusal is reasonable due to excessive commute, family obligations, or unclear contract terms, you might still be entitled to redundancy pay.
  3. Are mobility clauses legally binding?
    Mobility clauses are binding if they are clearly drafted, limited in scope, and enforced reasonably. Overly vague or broad clauses may not be upheld by courts.
  4. How much notice should an employer give for relocation?
    Reasonable notice should be given, although specific timeframes depend on the contract, the distance involved, and the impact on the employee.
  5. Do special rules apply for protected employees under mobility clauses?
    Yes, extra protections apply to pregnant employees, union representatives, and disabled workers. Employers must consult and accommodate them where necessary.

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