Q: When a business relocates premises does it have to pay travelling expenses to employees who have further to travel to their place of employment?
Nov 22 2007
Answered by: Marc Barber Ask a question
Although employees may be more than willing to relocate if it becomes necessary, on some occasions an employee may refuse on grounds that it will cause them hardship or they may request special treatment, such as a travelling allowance.
Ideally the contract of employment should have made provision for this eventuality, but if not the company should consider whether or not it is reasonable in the circumstances to expect the employee to relocate or whether it is asking too much and in fact making it difficult for the employee to carry on working for the company.
If this is the case the employee is likely to be entitled to a redundancy compensation package or a travelling allowance or alternative support in order to attend work.
The best approach is to discuss it with the employee and find out what reasons they have for refusing to relocate.
Questions to consider:
- How much further is this new location from the employee's home?
- Will the employee find it difficult to travel to the new location? For example, is it on a bus route? Can they car share?
- Can you assist them in overcoming any difficulties?
- Is special treatment justified in the circumstances and can the company sustain it over a number of years?
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