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Redundancy Pay - Continuous Service

Continuous service means working for the same employer without interruption.
Changes of employer normally breaks continuity, which means that employees must start all over again to qualify for rights

However, there are exceptions.

  • A teacher moving schools within the same education authority.
  • A trade, business or undertaking or part of an undertaking is transferred to another employer
  • By or under an Act of Parliament, one corporate body takes over from another as the employer
  • The employer dies and his or her personal representatives or trustees keep on the employee
  • The employee moves from one employer to another where 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

Absence from work through sickness, pregnancy or temporary reduction of work does not affect continuous service. The start date for employment may be altered to take into account strike days, but not for lock out days.

Weeks may also count even though there is no contract of employment if:

  • The employee is away from work sick or injured and then is taken back on by the same employer within 26 weeks of the contract ending
  • work ceases temporarily and then resumes
  • the employee is away in circumstances in which the employment is regarded as continuing, by arrangement or custom

Length of continuous service is counted backwards form the last day of the notice period given by the employer. If not enough notice has been given, the outstanding time can be added on. There is a limit of 20 years’ service and 30 weeks’ payment.

Any dispute you may have with your employer about the length of your continuous service can be settled by an employment tribunal.

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