Transfer of undertaking or business is a complex fact. It requires many aspects to be takeninto consideration. For there to be a transfer of undertaking or business, it has to be a stableeconomic entity that after transfer has retained its identity. The provisions regarding transferof undertaking or business is found in the transfer of undertaking or business directive,6 b § LAS and 28 § MBL.

An employee’s employment is automatically transferred to the transferee. This includes theemployment contract and the employment relationship as it were at the time of the transfer.This is expressed in 6 b § LAS. The provision suggests that the employment relationshipis something that goes beyond the employment contract. It is not clear from the legalpreparatory work, case law or legal literature what should be covered by the concept of anemployment relationship.