Under the Danish Act on Employees’ Rights in the event of Transfers of Undertakings, the transferor must within 'reasonable time' initiate negotiations with the employees or the representatives if the transferor is contemplating measures affecting the employees.

The employer must provide, through employees' representatives, the employees with adequate information on matters which affect them, such as when he/she plans to hand over business. Further, the employer must consult the employees' representatives on these matters.

In the event of transfer of an enterprise, the acquirer immediately takes over the rights and duties that existed in the time of transfer regarding collective agreements and other existing provisions regarding wage and working conditions.

Dismissal due to transfer of enterprise is not deemed as reasonably justified in the conditions of the enterprise, unless the dismissal is due to financial, technical, or organisational reasons that imply employment-related changes.