Definition
The unbroken period of employment with an employer, which determines an employee's eligibility for various statutory employment rights such as unfair dismissal protection, statutory redundancy pay, and certain family leave entitlements.
UK Context
Continuous service is calculated under sections 210-219 of the Employment Rights Act 1996. Key qualifying periods include: one month for statutory notice, one year for parental leave, two years for unfair dismissal and statutory redundancy pay. Under TUPE, continuous service transfers to the new employer.
Best Practices
- Keep accurate records of start dates and any breaks in service to calculate continuous service correctly
- Understand which breaks preserve continuous service, such as maternity leave, sickness, and temporary cessation of work
- Factor in continuous service when calculating statutory entitlements and advise employees of their qualifying rights
Frequently Asked Questions
What breaks continuity of service?
Most types of leave including maternity, paternity, and sick leave preserve continuity. A temporary cessation of work (e.g., seasonal layoffs) also preserves it. A week with no employment contract in place will generally break continuity unless it falls within a preserved category.
Does continuous service transfer between employers?
Not usually, unless the transfer is covered by TUPE or the employee moves between associated employers. If there is a genuine break in employment between employers, continuous service restarts. Some redundancy agreements may allow service to transfer by contractual agreement.