Can an employee refuse to transfer under the TUPE Regulations 2006?

Yes. An employee can inform the transferor or the transferee that he or she objects to becoming employed by the transferee, in which case the employee's contract with the transferor comes to an end. The employee may pursue a complaint of unfair constructive dismissal if there has been, or is about to be, a significant breach of contract so as to leave him or her with little choice but to resign. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) also allow the employee to claim that his or her contract has been terminated by the employer if the transfer would involve a substantial change in working conditions to his or her material detriment. The latter does not depend on the employer breaching the contract.