Skip to content

What is Continuous Employment?

Table of Contents

Understanding the concept of continuous employment may sound complicated as an employer. However, it is crucial for managing your workforce effectively and complying with requirements should instances such as redundancy or determining employment rights arise. Continuous employment refers to the length of unbroken service an employee has with an employer. The duration of continuous service is significant because it influences employees’ rights to certain benefits and protections under employment law. This article will provide a clear and concise guide as to what continuous employment is and why it matters for your business. 

What is Continuous Employment? 

Continuous employment is the period that your employee has worked for you without a break, such as by working consistent shifts every week. It plays a pivotal role in determining eligibility for various benefits and protections entitled to employees. Continuous employment generally commences when an employee’s contract of employment begins and ends upon termination. 

Continuous employment can also apply where an employee has been transferred from one business to another, most commonly known as a ‘TUPE’ transfer.

What is the Importance of Continuous Employment?

Employees must have a specified period of continuous employment to enjoy certain legal rights and protections. Generally, employees acquire several rights once they have surpassed two years of continuous employment. 

For example, an employee will need two years of continuous employment to bring a claim for ordinary unfair dismissal or enforce their right to a statutory redundancy payment. 

Some further examples whereby an employee’s continuous employment affects their entitlement to benefits and protections include the right to: 

  • bring a claim for constructive unfair dismissal, which requires two years of continuous service;
  • a statutory redundancy payment, which is only available to employees who have at least two years of continuous service; and 
  • claim statutory maternity or paternity pay, where employees need a period of 26 weeks of continuous employment before the qualifying week. 

Constructive unfair dismissal is when an employee may feel forced to resign as a consequence of business practices which leads them to feel as though they have no choice but to resign from their position.

Additionally, some employers will provide enhanced contractual rights once employees have reached a certain amount of continuous employment. These rights may include company sick pay, enhanced holiday leave and the entitlement to other company benefits.  

Continue reading this article below the form
Need legal advice?
Call 0808 196 8584 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.

Case Study: Practical Application

Consider a pool of employees who have been made redundant following a company’s downturn in business, which has led to reduced levels of work within the business. Jane has been with the company for 14 months, and Peter has been with the company for four years. Statutory redundancy pay is only provided to employees who have over two years of service, which means that Jane would not receive any redundancy pay. However, Peter has been with the company for four years and, as such, is entitled to statutory redundancy pay. 

Additionally, the company also has a policy for bonus payments for members of staff who have served the company for over two years. This means that Peter would also be entitled to a bonus payment in addition to his statutory redundancy pay. 

What are Exceptions and Breaks in Continuous Employment

Some breaks count as interruptions, potentially resetting the continuity clock. For example: 

  • Joining a new company: Generally, when employees move to different jobs with other companies, the continuity of employment is broken. This is because continuity of service does not continue to a new job, and as such, the clock will restart. 
  • Dismissal and re-employment: If you dismiss and subsequently reemploy an employee, and there is no contract of employment in place for a complete week ending with a Saturday, then the continuity of employment is generally broken. This applies unless it has been outlined otherwise in the employee’s contract of employment. 

How Does TUPE Affect Business Transfers?

Additionally, there may be instances whereby continuous employment is carried over or continued from one company to another. The most common example of this is under the Transfer of Undertakings Protection of Employment Regulations (TUPE). 

This typically occurs when a business or part of a business is transferred to another owner, where the new owner employs the existing staff. In these instances, generally, an employee’s continuity of employment will be preserved. This means that their continuity of employment is transferred with them, maintaining their continuous employment status with the new employer. 

Front page of publication
How to Hire and Inspire in the UK

This guide will help you understand the moving parts behind building a high-performing team.

Download Now

Key Takeaways 

Understanding continuous employment is fundamental for managing your workforce and understanding your legal obligations in the employment law sphere. By recognising the length of your employees’ continuous employment, you can better understand your legal position and avoid potential disputes. Continuous employment is an important determiner of the rights and entitlements of your employees that you must legally provide. 

If you need help calculating continuous employment, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Register for our free webinars

Sweat Equity: Helping Your Startup Grow

Online
Discover how sweat equity can support your startup’s growth. Register for our free webinar today.
Register Now

Selling a Business: Tips for a Successful Sale

Online
Selling your business? Learn essential tips to reduce risk and achieve a successful sale. Register for our free webinar today.
Register Now

How to Recover Unpaid Debts from Customers and Suppliers

Online
Struggling with unpaid debts? Discover your options. Register for our free webinar today.
Register Now

Preventing Employee Competitors: How to Protect Your Business

Online
Learn how to protect your business from employee competitors. Register for our free webinar today.
Register Now
See more webinars >
Lewis Njie

Lewis Njie

Trainee Solicitor | View profile

Lewis is a Trainee Solicitor in Legal Vision’s Employment team and assists on a broad range of employment matters, including advising startups and more established employers with employment law queries to drafting and ensuring compliance. He graduated from the University of York in 2023 with a Bachelor of Laws. During his time at York, Lewis championed social mobility as President of the 93% Club York and specialised in creating legal-based technological solutions for employment issues.

Qualifications: Lewis is a Trainee Solicitor in Legal Vision’s Employment team and assists on a broad range of employment matters, including advising startups and more established employers with employment law queries to drafting and ensuring compliance. He graduated from the University of York in 2023 with a Bachelor of Laws. During his time at York, Lewis championed social mobility as President of the 93% Club York and specialised in creating legal-based technological solutions for employment issues.

Read all articles by Lewis

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2023 Economic Innovator of the Year Finalist - The Spectator

  • Award

    2023 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2023 Future of Legal Services Innovation - Legal Innovation Awards