What Happens to Employees When a Company Relocates?

When a company decides to move its headquarters, it can be a difficult decision for employees. Some may accept the move, while others may end their employment. There are no laws governing the employee relocation process, so employers are not required to pay relocation expenses unless it is included in the employee's contract. However, employers may offer financial assistance with legal fees, moving costs and temporary accommodation.

If an employee declines the offer to relocate, they may not receive a severance pay. Employees may resist relocation due to the impact it will have on their family, personal time, travel costs and living environment. To make the transition smoother, employers may incentivize the move through a relocation package, especially for senior employees. In a Global Business Opportunity (GBO), the relocation company buys the house from the employee at fair market value before selling it to an outside buyer.

If an employee is fired due to relocation, they are eligible for unemployment benefits depending on how the package is paid and whether refusing to accept the package would still result in being out of work. In order to get the best talent for the job, companies should have a global relocation program that adheres to current best practices while keeping up with tax and legal requirements. A relocation specialist can take the lead in ensuring a smooth transition for employees and their families.

Jackson Jeannette
Jackson Jeannette

Subtly charming social media fanatic. Evil zombie ninja. Zombieaholic. Typical tv evangelist. Lifelong travel expert.