If they fail they suffer an outbreak of common sense and break. Broken Units Broken units that are forced to take yet another Morale check are truly in a bad position. If they fail the Morale check they are destroyed. If they pass they remain broken. The only action broken units are allowed to perform are fleeing actions.
Broken units can recover by passing a regrouping test.
The regrouping test is taken after a unit's first fleeing action during its turn. A unit may only take one regrouping test per Turn. A broken unit that is charged must pass a morale test. If failed the broken unit is destroyed, the models of the unit removed from the table as casualties. Note that this test is only taken when enemy units charge the broken unit, normal close combat actions do not require a Leadership test to be made.