Change of contract and office closure

Mart700

Hi,

The company I work for is considering closing the office where I am currently based, with plans to transition all employees to fully remote working. This potential change necessitates amendments to our employment contracts.

The organization has indicated that they will soon begin the employee consultation process, which is expected to last 30 to 45 days. However, they have yet to make a final decision regarding the office closure. There is still a possibility that they will drop their plan to close the office or a portion of the office could remain operational for certain employees.

Given this uncertainty, I am seeking guidance on how the consultation process should be conducted when the specific details of the proposed changes remain unclear. At this stage, it appears that the consultation may be more about fulfilling legal obligations than engaging in meaningful dialogue before a decision is made.

Additionally, the company has made it clear that no additional compensation or benefits will be provided for remote work, such as contributions toward electricity, internet costs, or other expenses. While there is the potential to claim approximately £300 annually from HMRC, no further financial support has been offered.

There is also concern regarding specialized commercial electronic equipment being used in home offices, particularly how this may impact home insurance policies.

As we do not have union representation, employees will need to navigate this process using elected employer representatives.. To that end, I would appreciate any insights or advice on the following:

1. Can the company initiate a consultation process and meet their legal requirements without first finalizing their plans for the office closure?
2. Are employers obligated to provide compensation for additional costs incurred when working from home, such as increased home insurance premiums?
3. If an employee refuses to accept the new terms of their contract, is the company required to offer voluntary redundancy?
4. Can the company propose alternatives such as relocation to another office (e.g., 100 miles away) and, if an employee declines, terminate their employment without offering redundancy pay or other compensation?

I would greatly appreciate any guidance anyone could provide on these matters.

TheSpectator

Not sure on the more legal questions but will correct a point you made......you won't get £300 from HMRC, you will get tax relief on that amount at your marginal rate so if you pay basic rate tax you will get 20% of £300. And no, employers are not obliged to pay anything towards working from home. Surely the saving in commuting costs would more than make up for home working expenses?

Mart700

You raise a good point about the £300—I realize I didn’t explain that very clearly.

Currently, we receive a commuter benefit, which will no longer apply once we transition to fully remote working. For many employees who live close to the office, their commuting costs are minimal or non-existent. 

penners324

Any equipment will be insured by the company so nothing to worry about.

Any extra utilities costs will be covered by reduced commuting costs 

penners324

1. Yes.
2. What extra costs? Company equipment is insured by the company regardless of where it is
3  No, if an employee refuses to work from home, it would be considered a resignation.
4. Yes

Hoenir

What does you employment contract state with regards to the location where your role may be performed. There's normally a degree of flexiblity stated. 

Grumpy_chap

Mart700 said:

There is also concern regarding specialized commercial electronic equipment being used in home offices, particularly how this may impact home insurance policies.

What type of "specialised commercial electronic equipment" do you refer to?
I assume you don't simply mean computers, printers and such like.

Mart700

@Hoenir My contract doesn't say anything about location but I believe the current contract new employees sign state they can be moved within 20 miles of the current office. 

@Grumpy_chap Its mostly prototype hardware. There might be very slight chance of it shorting out and maybe a rare chance of it catching fire but honestly it highly unlikely. The problem is insurance companies don't always see it like that. Normal hardware, like a PC, we get is covered for theft. We aren't sure if it covers fire which we need to confirm.

I was trying to determine whether anyone might end up worse off financially due to the savings on commuting being outweighed by increased costs of working from home. I wondered if the company has a duty to ensure that employees aren’t placed in a worse financial position when enforcing a contractual change. From what I'm hearing it doesn't sound like we many options. 

Hoenir

During the consultation you'll have an opportunity to express your personal views. As you say there's no actual definitive plan in place. Unfortunately whatever the outcome. There'll be some employees that feel aggrieved. Though business is business, and ultimately comes first. 

Savvy_Sue

Mart700 said:

I was trying to determine whether anyone might end up worse off financially due to the savings on commuting being outweighed by increased costs of working from home. I wondered if the company has a duty to ensure that employees aren’t placed in a worse financial position when enforcing a contractual change. From what I'm hearing it doesn't sound like we many options. 

I don't believe they'd have any such duty. A company can move offices and some may have to travel further, or by more expensive means. Free on-site parking may be withdrawn or not available on a new site. You can attempt to negotiate at least a temporary arrangement if that happens, but if changing to WFH that seems unlikely. 

However, I think those of us who can easily make 'good' arrangements to WFH may lose sight of the situation some people are in. I'm fortunate in that we have a spare bedroom with a desk in it, and I've set it up to suit me while DH is in another spare bedroom. An employer is still responsible for H&S, in particular (in this situation) for carrying out DSE assessments. During Covid, we provided keyboards, mice, adjustable chairs, monitors etc etc etc to (try to) ensure that everyone was working safely. And yet I know one of my colleagues was working in their bedroom with no space for separate monitor, keyboard, mouse or proper chair, and another was working in the lounge with the laptop on their lap. And in our case there were some confidentiality issues, which was less than ideal for those living in cramped flat-shares. 

One might say that consulting BEFORE finalising the options is actually sensible. The employer may find that more employees than they expect would have serious difficult working efficiently and safely from home, in which case they need a larger office space than if 99% of people can find a 'good' WFH space. 

If you don't want to transition to WFH, you might want to identify others in a similar position, and advocate for yourselves. 

lisyloo

I'm surprised it hasn't been mentioned but there are people who may have the heating off at home during the day (or a low thermostat setting). Heating bills could be higher than commuting in this day and age.

Whilst a good employer may look to put some transitory arrangements in place, basically this is a business change that people have to adapt to.

If am employee really doesn't like it - and some of us do still like being in an office, then their best best is to find another job.

Good employers typically put transitory arrangements in place, but it is not usually very extensive.
Most places do have some hot desking and meeting rooms.

I get £26 per month, but also have an office that I choose to go to so I guess I'm lucky.