Andy Burnham recently announced his plans to open a “Number 10 North”. Will whole departments move? Will existing staff be asked to relocate? These concerns are not limited to civil servants and MPs; whenever a business seeks to open additional premises or relocate, this can present challenges for employers.
The prime minister-in-waiting, Andy Burnham, took to the podium in Manchester at the People’s History Museum recently to make announcements which included detailing his plans to open a “Number 10 North”. It seems that (at least for now!) he has no plans to wind down Number 10 in the South, but nevertheless, there may be people who currently work in Whitehall who feel a little nervous about the potential changes and what they may entail. Will whole departments move? Will new staff be recruited? Will existing staff be asked to relocate? These concerns are not limited to civil servants and MPs; whenever a business seeks to either open additional premises or relocate, this can potentially lead to change, causing existing staff to seek clarity and presenting challenges for employers.
Setting up shop
Whether a company is taking the decision to open a new workplace or to relocate, it should consider the impact this will have on its employees at the outset. If the plan is to open a new workplace and recruit new staff, then there is likely little to consider save that it would be a good idea to communicate this to staff so they are not fearing the worst. In most cases, it may be necessary or desirable to move some people to the new location, even temporarily, so that experienced members of staff can help guide new recruits. If this is the plan of action, speaking with those who the company would like to relocate at an early stage is advisable.
Staff on the move
If there are mobility clauses in contracts of employment it may be that employees could be required to move or face losing their job. Although, bear in mind that very widely drafted mobility clauses may not be enforceable whereas those which allow for relocation within reasonable travelling distance are more likely to be. What amounts to reasonable travelling distance will of course vary depending on where the individual employee is travelling from and their mode of transport as well as their personal circumstances, such as any caring responsibilities and/or disability.
If only a small number of workers are required to staff the new premises, asking for volunteers in the first instance, and perhaps offering incentives such as a relocation bonus or cost of living adjustment, could be a good approach. Further, if staff relocations are only going to be temporary to allow the new premises to get up and running, consider what costs will be covered for current employees who are asked to work there. If the distance between the two workplaces is such that commuting every day is not workable, it is likely the employer will need to cover the cost of overnight stays and associated meals, and any additional travel costs incurred.
A trial run
If employees are required to relocate to keep their jobs but refuse to do so, if there is no effective mobility clause it may be that there is a redundancy situation. If so, the employer will need to carry out a consultation exercise, and, depending on the number of affected employees, collective consultation may be required. If there are redundancies proposed, be sure to consider suitable alternative employment. This may include offering those who would otherwise be redundant a trial period at the new premises. If at the end of the trial period it is determined that relocating is unworkable, the worker should then be treated as redundant, and an appropriate payment made to them.
While expanding or relocating a business by opening new premises can be necessary and even exciting, it is important for employers to bear in mind that employees may not have quite the same enthusiasm. Keeping the workforce informed of developments and providing reassurance where possible can help everyone feel less unsettled by upcoming change and hopefully avoid a situation where valued members of the team start jumping ship due to (hopefully!) unfounded fears.
