Section 704—
insert—
'(4) A person who was employed by a former water authority that is dissolved after transferring all its functions to a local government under section 700A and who, on the changeover day, becomes an employee of a local government—
(a) must be employed on terms and conditions of employment that are at least as favourable as the person's existing terms and conditions of employment; and
(b) remains entitled to all existing and accruing rights of employment.'.