Continuous employment when there is a change of employer
In this guide:
- Continuous employment and employee rights
- What does continuous employment mean?
- Continuous employment and breaks in work
- Continuous employment for statutory payments
- Reinstating or re-engaging an employee
- Continuous employment when there is a change of employer
- Minimum periods of continuous employment and qualification dates for employment rights
What does continuous employment mean?
How continuous employment is defined, how to treat short breaks in employment and related employee rights.
Continuous employment usually means working for the same employer without a break, or with short breaks that don't interrupt continuity of employment. These breaks may include time out of service due to strikes, lock-outs, and even unfair dismissal where the employee is reinstated or re-engaged into the service.
Employment can sometimes also be treated as continuous if your employee has previously been with a different employer, for example following the transfer of a business or undertaking. See responsibilities to employees if you buy or sell a business.
When does continuous employment begin and end?
To work out how long an employee has been continuously employed, you should first establish the date on which they qualify for a particular right - their qualification date - for the entitlement in question. The qualification date is defined differently for each entitlement.
See a table showing minimum periods of continuous employment and qualification dates for employment rights.
Once you have established the qualification date, you should count back from that date to the date of their first day of work with you.
However, remember that time with a previous employer can sometimes be added to the time with a present employer - see the effect a change of employer has on continuous employment.
Within the period of continuous employment, there may be:
- breaks in employment that don't break the continuity of employment
- periods which don't count towards the total length of continuous employment but also don't break continuity
See continuous employment and breaks in work.
An industrial tribunal can settle any dispute about the length of an employee's continuous service. Generally, the tribunal will assume the employment was continuous until it is shown otherwise.
Notice periods and continuous employment
The 'effective date of termination' - for the purpose of calculating the length of service - is the date on which employment ends following the notice period. If you do not give an employee any notice, the effective date of termination will be the date on which that statutory notice would have expired if you had given them notice.
Developed withAlso on this siteContent category
Source URL
/content/what-does-continuous-employment-mean
Links
Continuous employment and breaks in work
Industrial action, employment overseas and military service can affect how an employee's start date is calculated.
To find out whether an employee's full-service period - from the start of their employment to the qualification date - has been continuous and whether it all counts, you must consider it week by week.
For this purpose, a week is a period of seven days ending on a Saturday. If at any point continuity has been broken, the weeks before the most recent break will not count towards the employee's continuous employment.
A week normally counts towards a period of continuous employment if, in that week, the employee actually works or the employee's relations with the employer are governed by a contract of employment.
Absence from work because of sickness, maternity, paternity, adoption, and parental leave, temporary lay-off and annual leave all count towards continuous employment automatically, provided the contract continues throughout.
Industrial action
If an employee takes part in a strike, you should treat their starting date as postponed by the number of days between the last working day before the employee was on strike and the day on which they resumed work.
The starting date is not, however, postponed by periods of lockout, ie where the employer prevents employees from entering the workplace.
The employee's period on strike does not break the continuity of employment, except in some circumstances where the employer dismisses the employee during the strike.
Employment overseas
Service abroad generally counts towards continuous employment. In determining rights to a statutory redundancy payment, a week of this service only counts if the employee was classed as an employed earner during that week.
An 'employed earner' is someone for whom you pay Class 1 National Insurance contributions (NICs) - or for whom you would pay Class 1 NICs if they earned above the lower earnings threshold. Rates and thresholds for employers 2024 to 2025.
Military service
If you employ a member of the volunteer reserve forces who is returning from a period of military service, you must reinstate them in their old job or a similar position.
If you terminate a person's employment solely or mainly because of their liability to be mobilised for military service, you will be committing an offense, and a court can order you to pay compensation as well as levying a fine.
See if a Reservist employee is called up for service.
Weeks when there is no contract
Weeks during which an employee has no contract of employment may count towards continuous employment - and will not break the continuity of employment - if one of the following occurs:
- work ceases temporarily
- an employee is away from work sick or injured and is then re-engaged within 26 weeks of the contract being terminated
- the employee is away in circumstances in which their employment is regarded as continuing for some purposes, by arrangement or custom
Developed withAlso on this siteContent category
Source URL
/content/continuous-employment-and-breaks-work
Links
Continuous employment for statutory payments
Employees need to meet certain criteria in order to qualify for a statutory redundancy or parental payment.
Employees must meet qualification criteria to receive certain statutory payments, namely:
- statutory redundancy pay (SRP)
- statutory maternity pay (SMP)
- statutory paternity pay (SPP)
- statutory adoption pay (SAP)
- statutory shared parental pay (ShPP)
- statutory parental bereavement pay (SPBP)
Continuous service for SRP
Redundant employees have a number of rights, the main one being the right to receive SRP. In order to qualify for SRP, they must have at least two years of continuous service.
Employment may be treated as continuous for redundancy pay purposes if, for example, an individual is employed by a specified local government employer and moves to another specified employer within Northern Ireland. Similar legislative provisions operate in Great Britain, but there is currently no reciprocal arrangement between Great Britain and Northern Ireland.
Continuous service is counted backward from the 'relevant date' - usually the date the notice you give to your employee expires. If you give less than the legal minimum notice, the extra notice you should have given is added on.
SRP is based on an employee's amount of continuous service - up to a maximum of 20 years. Certain absences - eg sickness or lay-offs - can count towards continuous service even if the contract of employment was suspended. See continuous employment and breaks in work.
When working out continuous service for SRP, you should deduct any strike days from the total length of service. Note that going on strike does not actually break the continuity of employment.
If an employee is made redundant and is due to start another job (under a new employment contract) with the same employer then continuity of employment will be preserved so long as they start their new job within four weeks of the effective date of termination of their previous employment contract. Note that the offer to start the new job with the same employer must be made prior to the dismissal taking effect.
Continuous service for SMP, SPP, SAP, ShPP, and SPBP
For more on the continuous service requirements for these payments, see our guidance on:
Developed withAlso on this siteContent category
Source URL
/content/continuous-employment-statutory-payments
Links
Reinstating or re-engaging an employee
Conditions when reinstating or re-engaging an employee after they have been unfairly dismissed classes as continuous employment.
If you reinstate or re-engage an employee who has complained of unfair dismissal, the weeks between the dismissal taking effect and the resumption of work will count towards continuous employment. It works as though there had never been a dismissal, and continuity of employment is maintained.
However, this depends on the reinstatement or re-engagement arising from one of the following:
- an order of a tribunal which has found the dismissal unfair
- a claim made under a dismissals procedure designated by the Department for the Economy (DfE)
- an agreement reached with the help of a Labour Relations Agency (LRA) conciliator or the LRA arbitration scheme
- a compromise agreement under the relevant legislation
- an applicable statutory dispute resolution procedure
See dismissing employees.
Reinstating military reservists
After a reservist has been mobilised, you must reinstate that employee in their old job on their return from service provided that:
- the reservist applies for reinstatement in due time
- your business continues unchanged
If you cannot reinstate the reservist in their original role, you must offer a suitable alternative position with the same terms and conditions of service.
Developed withAlso on this siteContent category
Source URL
/content/reinstating-or-re-engaging-employee
Links
Continuous employment when there is a change of employer
Transfer of a business from one employer to another and other such changes do not break continuity in employment.
Normally, when an employee changes employer, this breaks continuity and their continuous employment must begin again.
However, continuous employment is preserved if:
- under an Act of Parliament or Northern Ireland Assembly, one corporate body takes over from another as the employer
- the employer dies and their personal representatives or trustees keep the employee on
- there is a change in the partners, personal representatives, or trustees who employ the employee
- the employee moves from one employer to another when, at the time of the move, the two employers are associated employers
- the employee of a health service employer moves to another health service employer while undergoing training
Continuous employment is also preserved when a business or an undertaking - or part of a business - is transferred from one employer to another. Continuity will also be preserved where there is a service provision change, such as a service previously undertaken by an employer being awarded to another contractor.
See responsibilities to employees if you buy or sell a business.
Developed withAlso on this siteContent category
Source URL
/content/continuous-employment-when-there-change-employer
Links
Minimum periods of continuous employment and qualification dates for employment rights
Table setting out the minimum periods of continuous employment needed to qualify for certain statutory employment rights.
The following table sets out the minimum periods of continuous employment an employee needs to qualify for certain statutory employment rights. It also gives the relevant date on which an employee qualifies for that right.
Note that any statutory employment rights not listed here have no minimum service requirement. For example, an employee has the right to take statutory maternity leave or paid annual leave from day one of their employment.
Statutory employment right Minimum period of continuous employment needed to qualify Qualification date Further information Guarantee payment One month. The day before that in respect of which the guarantee payment is claimed. Pay: employer obligations Remuneration on suspension on medical grounds One month. The day before that on which the suspension begins. Notice of termination One month. Date notice is given. Issue the correct periods of notice Written statement of the particulars of employment One month. The written statement Maternity pay 26 weeks. End of the 15th week before the expected week of childbirth. Maternity leave and pay Paternity leave and pay (births) 26 weeks. End of the 15th week before the expected week of childbirth. Paternity leave and pay Paternity leave and pay (UK adoptions) 26 weeks. End of the week in which the main adopter was notified of having been matched with the child for adoption. Paternity leave and pay Paternity leave and pay (overseas adoptions) 26 weeks. End of the week in which the main adopter received an official notification or by the time their leave/pay is due to begin, whichever is later. Paternity leave and pay Adoption leave and pay (UK adoptions) 26 weeks in respect of adoption pay but adoption leave is a day one right. End of the week which adopter was notified of having been matched with the child for adoption. Adoption leave and pay Adoption leave and pay (overseas adoptions) 26 weeks in respect of adoption pay and adoption leave. End of the week in which the adopter received an official notification or by the time their leave/pay is due to begin, whichever is later. Adoption leave and pay Parental bereavement leave and pay 26 weeks in respect of parental bereavement pay but parental bereavement leave is a day-one right. The employee or worker must have been continuously employed by you for at least 26 weeks up to the end of the ‘relevant week’. The ‘relevant week’ is the week (ending with a Saturday) immediately before the week of the death or stillbirth. Parental Bereavement Leave and Pay Right to make a flexible working request 26 weeks. Date of application. Flexible working: the law and best practice Parental leave One year. The start date of their first period of parental leave. Parental leave and time off for dependants Written statement of reasons for dismissal One year (none if dismissal occurs during an employee's pregnancy or statutory maternity leave). Generally, the last day on which the employee worked. Dismissing employees Right to claim unfair dismissal Generally, one year, but dismissals for an automatically unfair reason require no minimum length of service, eg dismissals relating to pregnancy or maternity. (One month where medical suspension could apply). The date when an employee's contractual notice or statutory minimum notice expires (or would have expired), whichever is later. Dismissing employees Redundancy payment Two years. The date when the employee's contractual notice or statutory minimum notice expires (or would have expired), whichever is later. Redundancy: the options Paid time off to look for work or to arrange training when being made redundant Two years. If the employer gives redundancy notice in person, the notice period should start from the next day. If the notice is given by email or post, the notice period should start when the employee has had time to read it. Redundancy: the options To become a permanent employee on the renewal of a fixed-term contract (or re-engagement on a new fixed-term contract) and to a written statement confirming this Four years unless continuation of the fixed-term contract can be objectively justified. The date on which the employee acquired four years of continuous service. Recruiting staff
See qualifying periods for employment rights - Labour Relations Agency (LRA) guidance.Developed withAlso on this siteContent category
Source URL
/content/minimum-periods-continuous-employment-and-qualification-dates-employment-rights
Links