It is very advisable that you include a cool-off period of 60 days in the contract. During this cool-off period, the employee may opt to return as a permanent employee, but all terms and conditions shall revert to original too i.e. in your case, the relocation shall be null and void if the employee will be assigned back to his or her original assigned workplace. This is because employees have 60 days to go to IR Department to claim reinstatement because of unjust dismissal. The cool off period effectively expire the time limit for the employee to make claim after the first contract variation. Of course they can still go to IR Department, but employer can argue that within the time limitation, the employee is free to revert to the original permanent position contract, so there is no case for CD.

I would suggest him to tender resignation for his current permanent position before the company offers him a new contract. If not, he should write in a letter to accept this offer as a contract.

I'm not sure converting to contract staff would be a good idea. Its like a gray area towards a CD case even though the staff agrees to it, 6 months after the contract expires and you decided not to renew. He might come back and file for CD

I'm not sure converting to contract staff would be a good idea. It's like a gray area towards a CD case even though the staff agrees to it. If 6 months after the contract expires and you decided not to renew, he might come back and file for CD.