The full implications of Brexit are not yet known, but it could be that major companies, particularly in the financial sector, move jobs out of the UK. If your company decides to take your position to another country, do you have to go and what options are available to you?
London is a key hub for the global financial sector, but this focus could move to cities such as Dublin and Frankfurt following our exit from the EU. Research carried out by Reuters estimates that at least 9,000 positions in the UK could be at risk in major banks over the coming years.
Do You Have to Relocate?
If your company decides to relocate its operations out of the UK, the options open to you will depend on if you have a relocation clause in your contract. Where there is such a clause, if you refuse to move you would be in breach of your contract. However, if you don’t have a relocation clause but decide not to move, your role could be made redundant.
Taking Up a Relocation Package
Either way you might not be left with many options, but before taking up a relocation offer consider exactly what the package covers.
Your company may be offering an attractive salary on paper, but living costs could be higher in the new location. For instance, in Germany social security costs are exceptionally high, so you might want to consider negotiating a ‘contractual tax equalisation promise’ to ensure that your net pay stays the same.
Another consideration is the help you’ll get to move your family, such as finding a new home and school and adapting to the new culture and surroundings. It would be good to negotiate a package that covers relocation costs and the use of employee relocation services, such as those provided by http://www.dtmoving.com/relocation-services.
The other concern for employees is what happens if you move and are then laid off a few years later. It’s important to check your contract to see what type of protection you’ll be offered, what will happen to your pension and bonus and if any relocation expenses will be reimbursed.
Nothing is particularly clear at the moment as to how radically the financial institutions will react to Brexit, but many are already starting to put plans in place for major relocations.