If an employee in a TUPE situation refuses to transfer, will he or she be entitled to a redundancy payment?
No, an employee in a TUPE situation who refuses to transfer is not entitled to a redundancy payment. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) have the effect that an employee's employment automatically transfers to a new employer on the transfer of a business. Regulation 4 states that, where an employee informs either the original employer or the new employer that he or she objects to becoming employed by the new employer, this will have the effect of terminating the employee's contract and he or she is not to be treated for any purpose as having been dismissed. This means that a refusal to transfer will mean that the employee has in effect resigned. It follows that there is no entitlement for the employee to claim a redundancy payment.