What is Continuity of Service for Employees and Workers?
Continuity of service is a key concept in UK employment law. It refers to the length of time an employee has been continuously employed by the same employer and it directly affects their eligibility for key employment rights such as redundancy pay, notice periods, and protection from unfair dismissal.
In this article, we’ll explain what continuity of service means, how it’s calculated, when it can be broken, and what it means for both employers and employees.
Why Continuity of Service Matters
The longer an employee’s service, the more employment rights they gain. Some rights apply from day one, while others require a minimum period of continuous service.
Key employee rights linked to continuity of service:
| Employment Right | Minimum Service Required |
| Statutory Redundancy Pay | 2 years |
| Protection from Unfair Dismissal | 2 years |
| Statutory Notice Periods | 1 month+ |
| Maternity/Paternity Pay & Leave | Varies (often 26 weeks) |
| TUPE Protections | Immediate |
| Flexible Working Request | 26 weeks |
| Shared Parental Leave | 26 weeks |
For a full breakdown, see the GOV.UK guidance on employment rights.
What Counts as Continuous Service?
In most cases, continuous service begins on the first day an employee starts working under a valid contract of employment and continues without any break of one full calendar week or more (Sunday to Saturday).
Even if an employee changes roles, job titles, or works at a different site within the same company, their continuity of service usually remains intact – provided there’s no break in the employment contract and the legal employer stays the same.
Examples that preserve continuity of service include:
- A company changes its name or restructures, but the underlying legal entity remains unchanged.
- Taking statutory leave, such as maternity, paternity, adoption, or sick leave these do not break continuity.
- Being transferred to a new employer under a TUPE transfer.
- Periods of temporary lay-off or agreed unpaid leave, such as a sabbatical, if the employment contract remains in force.
- Time away as a military reservist employees have protections that maintain continuity while they are on active duty or training.
Tip: Employees should keep copies of contracts, HR letters, and payslips to prove their continuous service if needed. Employers should have clear policies to handle changes in role, leave, or transfers correctly. For practical help, see our guide to the role of directors in UK companies or visit ACAS for more on continuous employment rights.
What Breaks Continuity of Service?
Generally, a break in employment of one full calendar week or more (running Sunday to Saturday), where there is no contract of employment in place, will end an employee’s continuity of service. However, there are important exceptions, so employers and employees should understand when breaks do and don’t affect statutory rights.
Common situations that may break continuity include:
- Voluntarily leaving a job and not being re-employed within a week.
- Being dismissed and not being reinstated by an Employment Tribunal or through an appeal.
- Moving between unrelated employers, for example when changing jobs voluntarily.
- Starting a new role with a different legal entity within the same group of companies, if there’s no formal transfer of employment under TUPE or other contractual continuity.
Employers should be cautious when terminating and rehiring staff. Unintentional breaks in service can affect an employee’s eligibility for rights like redundancy pay or unfair dismissal protection and poorly managed processes can increase the risk of tribunal claims and financial penalties.
Tip: If you’re unsure whether a break in employment affects continuity, seek professional advice. For more guidance, see our articles on TUPE transfers and understanding the UK Companies Act or check ACAS for practical information.
Continuity of Service and TUPE Transfers
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), when a business or service is transferred to a new employer, affected employees automatically retain their continuity of service.
This means:
- Their original start date carries over to the new employer.
- All employment rights that depend on length of service, such as redundancy pay, notice periods, and protection from unfair dismissal remain intact.
- The new employer cannot treat transferred employees as new starters or reset their length of service.
Tip: TUPE can be complex, especially for small businesses taking over contracts or services. Employers should seek professional advice to ensure they comply with all TUPE obligations and avoid costly disputes.
