Forced Relocation Orders by Employers in Ontario Employment Law

Forced Relocation Orders by Employers in Ontario Employment Law

If your employer orders you to relocate to another city or office, you may wonder what your rights are under Ontario law. In most cases, unless your employment contract clearly allows for it, your employer cannot force you to relocate without your consent. If you are presented with a relocation ultimatum, you may have legal grounds to refuse, and in some cases, to claim constructive dismissal and seek severance. Understanding your options is critical before you make any decisions.

Case Example: The Amazon Relocation Mandate

Recently, a major multinational technology company, Amazon, made headlines after employees alleged that the company ordered thousands of staff to move to designated office hubs, such as Seattle and other major cities. Employees reported having just 30 days to decide whether to move, with a further 60 days to complete the relocation or resign. According to these employees, those who declined were not offered severance. This situation highlights the real-world impact and stress that forced relocations can create, and it offers important lessons for Ontario employees.

Ontario Legal Framework for Forced Relocation

In Ontario, the law provides significant protections for employees faced with unilateral relocation demands:

  • Employers generally cannot require non-unionized employees to move to a new city unless the employment contract contains a clear and enforceable relocation or mobility clause.
  • Even where such a clause exists, Ontario courts interpret them narrowly. Major changes, such as a move to another province or country, are rarely enforceable unless explicitly agreed to in writing.
  • If a forced relocation significantly changes your working conditions or personal life, it may amount to constructive dismissal, entitling you to severance.

What Should Employees Do If Ordered to Relocate?

If you are faced with a relocation order, consider taking the following steps:

  • Review your employment contract for any relocation or mobility clauses. If no such clause exists, your employer may not have the right to force a move.
  • Assess the impact of the relocation on your personal and family life, commute, and job responsibilities.
  • Document all communications with your employer about the relocation. Keep records of any offers, threats, or ultimatums.
  • Seek legal advice before making any decisions or resigning. Premature resignation could affect your entitlement to severance or other remedies.
  • Do not sign anything under pressure. If you are presented with new terms or agreements, ask for time to review and consult a lawyer.

Guidance for Employers

Employers should approach relocation requests with caution. Transparent communication, individualized consideration, and compliance with employment contracts are essential. Blanket relocation policies, like those alleged at Amazon, can expose employers to significant legal risks in Ontario.

Conclusion

If your employer is pressuring you to relocate, you have rights under Ontario law. Unless your contract clearly allows for it, you cannot be forced to move, and you may have strong legal remedies if your employer tries to impose a relocation. Before making any decisions, review your contract, document your interactions, and seek legal advice to protect your interests. Taking these steps can help you respond confidently and ensure your rights are respected.

To better understand your employment rights, we encourage employees and employers to seek legal advice. We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.

Author – Rachel Patten