Impact of Refusing Relocation on Severance and Notice Period

In a professional setting, refusing to relocate with your boss can have significant implications for your job security and severance package. This article explores the legal and practical aspects of such a scenario, clarifying the processes involved and the potential outcomes based on distance and job status.

Understanding the Legal Context

It is widely believed that if an employee does not wish to relocate for job reasons, the company will offer a severance package as a courtesy. However, this is not a legally binding requirement. If an employee cannot or does not wish to accept the assignment, the company’s need for this reassessment can technically justify the termination of their employment with no severance package, unless explicitly stated in the contract or provided by internal policies.

Strategic Decisions and Employee Impact

Corporate strategies, including office relocation, are strategic decisions that impact employees. Relocation can disrupt daily operations and employee morale. Even if a change affects only a few employees, it is often seen as necessary for the company's broader strategic goals.

From a legal standpoint, changes in job terms due to relocation do not necessarily affect your contractual obligations, particularly regarding notice periods. However, there are circumstances where relocation can lead to redundancy, triggering severance packages.

Cases of Relocation and Their Implications

Short Distance Relocation: In the case of a short distance relocation, such as a move within a 20-mile radius, employees often adapt to the new location or choose to stay in their current roles. In this scenario, the job does not become redundant, and no severance package is typically required.

Long Distance Relocation: Long distance relocations, such as a move from 60 miles to 200 miles, are more disruptive. In these cases, employees may be offered a severance package to compensate for the job loss. Alternatively, they may be relocated to a different role within the same department to maintain employment.

Employee Decision-Making and Outcomes

Your refusal to relocate can have different legal and practical outcomes depending on the distance involved:

Long-Distance Relocation: If you are asked to relocate to a long distance, such as a move from 200 miles to 60 miles, your refusal could lead to the termination of your employment, triggering a severance package. Your notice period will be part of your final payout, and this decision will not affect your contractual terms related to notice periods or severance. Short-Distance Relocation: If the relocation is only a short distance, such as within 20 miles, your refusal can be considered a resignation, and no severance package will be provided. In such cases, you are still required to give your 3 months' notice, but this may become somewhat academic if you find a new job before the relocation date.

Conclusion

When faced with the decision to relocate, it is crucial to understand the legal and practical implications. If your company requires a long-distance relocation, you could be offered a severance package due to the job being made redundant. However, if it is a short-distance relocation, refusal could result in a simple resignation and no severance package. Always ensure you fully understand all implications and provided options before making a decision.

Ensuring you stay informed about the specifics of the relocation and any offers from your employer can help you navigate this situation more effectively and make a more informed decision.