They protect employee rights in five key ways. They:
(i) Allow them to transfer automatically into the employment of the new employer (the transferee) on the same terms and conditions as they had with the old employer (the transferor);
(ii) Protect them from being dismissed because the undertaking is being transferred;
(iii) Provide for the transfer of collective agreements;(iv) Require the new employer to honour existing arrangements for trade union recognition;
(v) Oblige both the old and the new employer to consult with a recognised union or with elected employee representatives.