A company deciding to relocate you to a workplace in another city, requiring a change of residence, isn't a decision that can be made lightly: there are formal requirements and specific rights for the affected worker that are worth knowing.
Relocation vs. temporary assignment: a key distinction
- Temporary assignment: a change of workplace for a period of less than 12 months within a 3-year span, with the right to compensation for travel expenses and per diems, but without the same formal requirements as a permanent relocation.
- Relocation: a change of workplace that requires a change of residence, either permanently or for a period longer than a temporary assignment, subject to a procedure and specific rights that are much more demanding for the company.
The grounds that justify a relocation
The company must prove economic, technical, organizational, or production-related reasons that justify the relocation (similar to the grounds that justify an objective dismissal); it cannot decide arbitrarily without any justification tied to these grounds.
The procedure and notice period
For an individual relocation, the company must notify the worker (and their legal representatives) at least 30 days before the effective date of the relocation. If it affects a significant number of workers within a given period, it's considered a collective relocation, which requires a consultation period with worker representatives, similar in logic to that of a collective dismissal.
Your options when facing a relocation
As a worker affected by a relocation, you have several options:
- Accept the relocation, with the right to financial compensation for your own expenses and those of your cohabiting family arising from the change of residence (moving costs and related expenses).
- End the contract, with the right to severance pay of 20 days' salary per year worked, up to a maximum of 12 months' pay, similar to an objective dismissal, with no need to accept the relocation.
- Legally challenge the relocation, if you believe the grounds claimed by the company don't hold up or the procedure wasn't followed correctly, without prejudice to the fact that, while the dispute is being resolved, you must report to the new workplace (challenging it doesn't automatically suspend the relocation, except in exceptional cases).
Difference from a simple change of position with no change of residence
A change of workplace within the same town, or one that doesn't require a change of habitual residence, isn't considered a relocation in this strict sense, although it could constitute a substantial change to working conditions if it significantly affects other relevant aspects of the job, with its own specific rules and rights.
If you decide to end the contract, calculate your severance pay
Our severance pay calculator lets you estimate the approximate severance pay you'd be entitled to if you decide not to accept the relocation and end the contract on these grounds.