Employees Refusing Transfer: How Should Management Handle This Dilemma?

Sir, we are planning to shift a specific operation to another state and have requested the employees working in that particular area for a transfer. There is also a clause in the appointment order clearly stating that if necessary, the management reserves the right to transfer employees, which was also signed by the employees. However, in this situation, they have refused to go on transfer.

The management has alternatively negotiated with them for a settlement (some amount), but they are not ready to accept it. Since the management cannot retain them in another department as the current staff strength is already high, we seek your advice on what stand the management should take in this situation.

Regarding Transfer

I assume that you want to shift specific operations and employees to another unit that existed at the time of the appointment of these employees. You may transfer them; the only thing you have to do is restructure their salary/wages based on rural/urban criteria and consider providing a Transfer Allowance for these employees. Even after making these adjustments, if they refuse the transfer (please remember that the transfer should not be malicious), you can retrench them as per the Industrial Disputes Act and appoint new employees for the referenced unit.

Regards,
SDP