When Can an Employee Refuse a Transfer? The Legal Boundaries

An employee received an email informing her that, effective the following Monday, she would be transferred from marketing director to customer service representative at the same salary. The stated reason: business restructuring. She asked whether she had to accept.

The answer is no—and the reason matters.

The Starting Point: Contracts Are Bilateral

The position, work location, and salary are core terms of an employment contract in China. Changing them unilaterally requires mutual agreement, in writing. An employer's "business need" does not override this requirement.

Employers retain discretion over day-to-day management. But a transfer that materially changes agreed contract terms is not a management decision—it is a contract amendment, and it requires the employee's consent to take effect.

When a Transfer Is Likely Unreasonable

Not every transfer can be refused. The analysis depends on the circumstances. A transfer is more likely to be unreasonable when:

• The new role is substantially lower in seniority, authority, or visibility than the original role
• The salary structure changes in a way that reduces actual earnings, even if the base rate is nominally unchanged
• The transfer location requires a significantly longer or more expensive commute
• There is no credible business rationale (restructuring documents do not exist, other employees in comparable roles are not affected)
• The transfer follows a complaint, a protected leave, or a request to exercise a legal right—suggesting a retaliatory motive

How to Respond Without Creating Additional Risk

Do not simply stop showing up. Even if the transfer is unreasonable, unexplained absence gives the employer grounds for dismissal based on job abandonment—a much stronger legal position than an improper transfer.

The recommended approach:

1. Respond to the transfer notice in writing. State that you do not consent and request the employer provide the basis for the transfer.
2. Continue attending work in your current capacity while the dispute is being resolved, where possible.
3. Document everything: the original transfer notice, all subsequent communications, and any changes to your actual duties or reporting relationships.
4. If the employer dismisses you for "failing to comply with a management decision," you have a strong basis for claiming wrongful termination compensation (two months' pay per year of service, or "2N").

Constructive Dismissal: An Option Worth Knowing

If the employer uses the transfer as a mechanism to pressure you into resigning—by assigning humiliating work, excluding you from systems, or making the new role unworkable—you may be able to invoke the rules on constructive dismissal. This allows you to resign and claim statutory severance, rather than accepting the voluntary resignation treatment the employer is pushing for.

The key is to document the pressure clearly before resigning.