smallbusiness.co.uk: Helping your business think big

Do I need to issue a new contract of employment if my company moves premises? If the company is changing to a PLC company do I need to issue a new contract of employment?

It is good practice, besides the law, that if details of a contract of employment statement change, to update them. It is not a major issue normally changing the name of employer as of itself it is administrative factor that doesn’t really change their terms and conditions in any way in the sense of reducing their pay or holidays and therefore should normally be not very much more than an administrative process.

However, the question raises the issue regarding a move of premises. This could possibly prove to be a problem in a different respect. The definition of redundancy is ‘the need for people to carry out work of a particular kind has ceased or will cease, has diminished or will diminish at that site’. This means that potentially by closing down an operation at one site and moving it to another that you are in a potential redundancy situation.

If the moving distance is quite small then the reality is that the offer of employment at the new premises to carry on doing what they were doing at the old premises on the same terms, same status, same hour, etc. means that you are offering a suitable alternative and anyone who turns down the offer would be not entitled to redundancy payment, etc. However, if the move is one of several miles such that some people now cannot easily get to the new place of work the issue maybe somewhat more difficult to resolve.

This is one of the reasons why in potential redundancy situations the law requires that employers consult with employees at the earliest possible moment. If you have not already done so you should consult with your staff about what the proposal is in the sense of the new premises where they are and what, if any, arrangements you tend to put in place to aid the employees to get to work at the new site. Since this is a potentially complicated issue again it would be beneficial to obtain professional advice before taking any action.

See also: Checklist: Choosing business premises

Post a comment

Related

News | Management

SMEs urged to bid for public sector contracts

News | Law

Counting the cost of council contracts

News | Management

How to draw up an employment contract

News | Management

Small firms miss out on public sector contracts

Small Business Offers

More from Small Business

Starting a Business
How to successfully pitch your business idea

How to successfully pitch your business idea

Spencer Waldron, of cloud presentation software company Prezi, provides some tips on how to build a...  

Financing a Business
What I learned from my crowdfunding experience

What I learned from my crowdfunding experience

Henry Catchpole broke the record for the quickest close on crowdfunding website Syndicate Room. Here, he...  

Running a Business
Top five things to consider when moving your company HQ abroad

Top five things to consider when moving your company HQ abroad

Whether it is for tax reasons, reduced set-up costs or otherwise, here is some guidance...  

News
Scotland warned of the dangers to business faced by independence

Scotland warned of the dangers to business faced by independence

Leaving the Union could have 'catastrophic consequences' on Scotland’s start-up scene, according to a prominent...