VIC Employer Moving to New Site - Compensation?

[Janine]

Hello,

My employer is moving the business to another location. Apparently the company has a legal clause that if the new place of business is less than 25km from the old one, they do not have to pay employees compensation for any extra expenses occurred due to extra travel time.

My contract states that my place of employment is situated in the first location with occasional travel required. Does my employment contract out weigh the company's contract and therefore entitle me to some time of compensation?

Kind regards.

 

[Sophea]

Hi Janine,

It appears that where the location of employment is expressly stated in the contract, and no change of location was envisioned at the time of your commencing employment, then your employer may be in breach of the agreement. For example in the case of Han Jian Liu v NHP Electrical Engineering Products Pty Ltd[2], it was held that the employer could not make an employee to move to another manufacturing plant because it directly contradicted the contract. However, if the company has policies that state they will not pay compensation if the location change is less than 25km away then that may be incorporated into your contract of employment if:

1. The policy is contractually worded;
2. Your employment contract refers to the policy; and
3. You were given a copy of the policy before or at the time you signed the employment contract.

Also check out: Relocation – your rights and responsibilities

 

[Janine]

Hi Janine,

It appears that where the location of employment is expressly stated in the contract, and no change of location was envisioned at the time of your commencing employment, then your employer may be in breach of the agreement. For example in the case of Han Jian Liu v NHP Electrical Engineering Products Pty Ltd[2], it was held that the employer could not make an employee to move to another manufacturing plant because it directly contradicted the contract. However, if the company has policies that state they will not pay compensation if the location change is less than 25km away then that may be incorporated into your contract of employment if:

1. The policy is contractually worded;
2. Your employment contract refers to the policy; and
3. You were given a copy of the policy before or at the time you signed the employment contract.

Check out this website: Relocation – your rights and responsibilities - Professionals Australia

Hi Sophea,

Thank you so much for the information, it is invaluable. My contact does not state any information about the actual policy for compensation, nor does it refer to the company policy and I wasn't given a copy of this policy when I signed the contract.
I can't thank you enough.