You may have to read Section 12(3)(e) of the Employment Act as follow:
" (3) Notwithstanding anything contained in subsection (2), where the termination of service of the employee is attributable wholly or mainly to the fact that:
(e) the employee has refused to accept his transfer to any other place of employment, unless his contract of service requires him to accept such transfer; or
the employee shall be entitled to, and the employer shall give to the employee, notice of termination of service, and the length of such notice shall be not less than that provided under subsection (2)(a), (b) or (c ), as the case may be, regardless of anything to the contrary contained in the contract of service."
The parties should first find a amicable settlement to the matter so that no one will lose out. So, when the transfer is not possible to be carried, the law seems to say that there is no other choice except for the contract of service to be terminated. When transfer is not mentioned in the contract of service, the employer will have to give notice and pay termination benefits and other obligations under the law. It is really up to the parties now.