Businesses often move their workplaces, and want their employees to move to the new location.

Businesses may also offer employees a position in a different location when their roles are being made redundant. This is called redeployment.

Sometimes, employees don’t agree to relocate because the new workplace:

• is harder to get to by public transport, or
• involves a longer commute to and from home.

Can an employer make their employees relocate?

If relocation is something that’s been agreed to between the employer and employee, it’s more likely to be enforceable. Agreement can be verbal or written.

If nothing has been agreed to, it’s not as clear.

Is an employee entitled to redundancy pay if they don’t agree to relocate?

Employees may be entitled to redundancy pay if it’s reasonable to refuse to move to the new workplace.

If an employee refuses a reasonable offer of redeployment, the employer can make an application to the Fair Work Commission to have the redundancy pay reduced.

What does ‘reasonable’ mean?

Generally, it’s considered reasonable for an employee to refuse to relocate if the relocation causes a material change to, or breaches, their employment contract.

There are a number of other things that need to be considered. These include whether:

• the employee’s contract or registered agreement says anything about relocating during their employment
• there’s been any change to the employee’s conditions, such as pay, responsibilities or status, following the relocation
• the new location is accessible by public transport
• it takes longer to travel to and from the new workplace
• the employer has taken any steps to ease the burden of extra travel time.

What happens if an employee doesn’t think relocation is reasonable?

Employees should speak to their employer if they think they’re entitled to redundancy pay.

If things can’t be worked out at that stage, there may be other steps that employees can take to sort the issue out. This could include following the dispute resolution procedure in an award or registered agreement.

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