Objecting to TUPE Transfer: Your Right to Refuse
Can you refuse a TUPE transfer? How to object, consequences of objecting, what happens to your employment, and when objection might be justified.
While TUPE transfer is usually automatic, employees have the right to object. Understanding the consequences is crucial before exercising this right.
Right to Object
Statutory Right
Under Regulation 4(7) TUPE:
- Employee may object to becoming employed by new employer
- Must object before or on transfer
- Employment then ends on transfer date
Cannot Be Forced
Nobody can compel you to:
- Work for employer you haven't chosen
- Transfer against your will
- Accept new employer
But consequences are significant.
Consequences of Objecting
Employment Terminates
On transfer date:
- Employment ends
- Not employed by old employer (relationship already ended)
- Not employed by new employer (you've objected)
- Clean break
Not a Dismissal
Objection means:
- Not treated as dismissal by old employer
- Not treated as dismissal by new employer
- No unfair dismissal claim (for transfer itself)
- No redundancy pay entitlement
- No notice period required
Lose Continuity
If you object:
- Continuous employment breaks
- Start date with any new employer will be fresh
- Lose accrued service for statutory rights
- Redundancy calculations restart
- Unfair dismissal clock restarts
When You Might Object
Valid Reasons to Consider
| Reason | Consider Objecting? |
|---|---|
| New employer has terrible reputation | Possibly |
| Ethical objections to new employer's business | Possibly |
| New employer is competitor of family business | Possibly |
| Guaranteed alternative job lined up | Possibly |
| Cannot work for new employer personally | Possibly |
Poor Reasons
Don't object just because:
- Don't like change
- Uncertain about future
- Prefer old employer
- Minor concerns
- No alternative employment
Financial Considerations
Before objecting, consider:
- Will lose job immediately
- No redundancy pay
- No notice pay
- No unemployment gap
- Need alternative income
Timing of Objection
Before or On Transfer
Must object:
- Before transfer date, OR
- On transfer date itself
Not After
Cannot object after:
- Once transferred
- After working for new employer
- Even briefly
- Lost right to object
How to Object
Best practice:
- Put objection in writing
- To both old and new employer
- Before transfer date
- Be clear and unambiguous
- State you're objecting under TUPE
- Keep copy
Example
"I am writing to formally object to the transfer of my employment to [New Employer] under TUPE. I do not consent to becoming employed by [New Employer] and wish my employment to end on the transfer date."
Constructive Dismissal Alternative
Substantial Detrimental Change
If transfer involves substantial change:
- Significant worsening of terms
- Material detriment to you
- Fundamental breach of contract
- Identity of employer alone not usually enough
You may:
- Resign
- Claim constructive dismissal
- Argue change makes position untenable
Difference from Objecting
| Objecting | Constructive Dismissal |
|---|---|
| Simple refusal to transfer | Resignation due to breach |
| Employment just ends | Claim dismissal |
| No compensation | Can claim compensation |
| No tribunal claim | Tribunal claim possible |
| No service needed | Usually need 2 years |
Which Route?
If substantial detrimental change:
- Consider constructive dismissal instead of objecting
- Preserves claim rights
- Can seek compensation
- But must be able to prove breach
Seek legal advice before deciding.
What Employers Cannot Do
Cannot Penalize Objection
Old employer cannot:
- Dismiss you for considering objection
- Treat you detrimentally
- Pressure you not to object
- Threaten consequences
Cannot Prevent Objection
No one can stop you objecting:
- It's your right
- Cannot be contracted out
- Cannot be overridden
- Must be respected
Partial Objection
Cannot Pick and Choose
You cannot:
- Transfer some terms but not others
- Accept new employer but old terms
- Negotiate different deal
- Cherry-pick favorable elements
All or Nothing
Objection is:
- Complete refusal to transfer
- Not negotiation tool
- Cannot object to some aspects
- Binary choice
After Objecting
No Ongoing Employment
Once objected:
- No employer from transfer date
- Not entitled to work notice
- Not entitled to notice pay (unless separately owed)
- No ongoing obligations
- Clean break
No Claims for Transfer
Cannot claim:
- Unfair dismissal for the transfer
- Redundancy pay for the transfer
- Compensation for the transfer
Other Claims Preserved
Can still claim:
- Discrimination (if applicable)
- Unpaid wages from before
- Holiday pay accrued
- Breach of contract predating transfer
- Claims unrelated to transfer
If You've Been Dismissed Before Transfer
Different Situation
If dismissed before objecting:
- Dismissal claim available
- Not objection situation
- Can challenge dismissal
- Separate issues
Both Possible
Could have:
- Been dismissed (challengeable)
- Then objected as well
- Two separate issues
- Dismissed claim takes priority
Practical Scenarios
Scenario 1: Object Without Alternative
Object because don't like new employer, no other job.
Result:
- Employment ends
- No income
- No redundancy pay
- Very difficult position
- Should not object in this case
Scenario 2: New Job Lined Up
New employer starting competitor business, you have offer from different company starting next week.
Result:
- Object to transfer
- Start new job
- Clean break
- Reasonable to object
Scenario 3: Substantial Change to Terms
New employer changing location from London to Edinburgh, you cannot relocate.
Result:
- Don't just object
- Consider constructive dismissal instead
- Substantial detriment
- Could claim compensation
- Get advice first
Employer Response
Must Respect Objection
If you object, employer must:
- Accept the objection
- Not try to force transfer
- Confirm employment ending
- Final pay and holiday pay
- Return of property
Cannot Change Mind
Once objected:
- Decision is final
- Cannot reverse
- Cannot decide to transfer after all
- Must honor objection
Key Differences Summary
| Factor | Objecting | Constructive Dismissal |
|---|---|---|
| Reason | Don't want to transfer | Substantial detrimental change |
| Process | Simply object | Resign and claim |
| Outcome | Employment ends | Claim compensation |
| Payment | None | Potentially compensation |
| Continuity | Lost | Preserved if successful |
| Service needed | None | Usually 2 years |
Summary
Right to Object
- You can refuse to transfer
- Statutory right
- Cannot be prevented
- But significant consequences
Consequences
- Employment terminates
- No redundancy pay
- Cannot claim unfair dismissal for transfer
- Lose continuity
- No notice period
When to Object
Consider if:
- Strong ethical or personal objections
- Alternative employment secured
- Cannot work for new employer
- After taking advice
Don't object if:
- Just uncertain
- No alternative plans
- Minor concerns
- Need the income
Alternative Route
If substantial detrimental change:
- Consider constructive dismissal instead
- Preserves claim rights
- Can seek compensation
- But must prove breach
- Get advice first
Process
- Decide before transfer
- Put objection in writing
- To both employers
- Be clear and definite
- Understand consequences
- Have plan for after
Objecting is a significant decision with permanent consequences. Only do so if you have strong reasons and clear plans for alternative employment. Otherwise, transfer and assess the situation after, or consider constructive dismissal if substantial detrimental change.
Related answers
Constructive Dismissal: What Employers Need to Know
Understanding constructive dismissal claims. What triggers them, how to avoid them, and what to do if an employee resigns claiming breach of contract.
TUPE Employee Rights: What Transfers and What Doesn't
Your employment rights under TUPE. What transfers to the new employer, continuous service, pension rights, and protection from dismissal.
What is TUPE? Transfer of Undertakings Explained
What is TUPE and when does it apply? Understanding the Transfer of Undertakings (Protection of Employment) Regulations when businesses change hands.
Frequently Asked Questions
- Can I refuse to transfer under TUPE?
- Yes. You have the right to object to transferring to the new employer. If you object, your employment ends on the transfer date. However, it's not treated as a dismissal or resignation - it's a statutory termination. You won't get redundancy pay or be able to claim unfair dismissal just for the transfer.
- What happens if I object to a TUPE transfer?
- Your employment terminates on the transfer date. You're not employed by either the old or new employer after that date. You don't receive redundancy pay, cannot claim unfair dismissal for the transfer, and lose continuity of employment. Only object if you have strong reasons and alternative employment.
- Can I claim constructive dismissal instead of objecting?
- Possibly, if there's a substantial detrimental change to your working conditions connected to the transfer. You'd need to show the change is fundamental, breaches your contract, and makes your position untenable. This is different from simply objecting - seek legal advice before deciding which route to take.