Continuous employment (the unbroken length of service with an employer) determines many important employment rights (such as redundancy pay and, currently, ordinary unfair dismissal). So a key question is whether common events break that continuity. The reassuring answer is that many do not. Here is a plain-English guide for England and Wales under the Employment Rights Act 1996.
How continuity works
Continuity generally runs from the employee's first day of work and continues, week by week, until employment ends. The law (Employment Rights Act 1996, ss 210–219) is designed to preserve continuity through many ordinary interruptions, so service is not easily lost.
Situations that do NOT break continuity
Sick leave
A period of sickness absence does not break continuity, the employee remains employed throughout, so service keeps accruing.
Holiday and family leave
Annual leave, and maternity, paternity, adoption, shared parental and parental leave, do not break continuity. The employee stays employed and their service continues.
TUPE transfers
When a business (or part of it) transfers to a new employer under TUPE (the Transfer of Undertakings (Protection of Employment) Regulations 2006), the employees transfer with their existing terms and accrued continuous service intact, continuity carries over to the new employer.
Change of role with the same employer
Moving to a different job, department or position with the same employer does not break continuity, it is the employment relationship that matters, not the particular role. (Continuity can also be preserved when moving between associated employers.)
Other preserved situations
Continuity is also generally preserved during:
- a temporary cessation of work (a lull where the employee is taken back);
- arrangements or custom treating the employment as continuing; and
- (in a special way) periods of strike, these do not break continuity, though the strike days themselves don't count towards the total.
Situations that CAN affect continuity
- A genuine, permanent break in employment (the employee actually leaves and later returns under a new engagement) can break continuity, though some returns are protected (e.g. reinstatement after an unfair dismissal claim).
- The detailed statutory rules decide borderline cases, so gaps between jobs should be checked carefully.
Why it matters
Continuity drives entitlements such as statutory notice, statutory redundancy pay, and (currently) ordinary unfair dismissal eligibility (and length of service increases some of these). Note that proposals to reform the qualifying period for ordinary unfair dismissal are under discussion; under current law, ordinary unfair dismissal generally requires the statutory qualifying period unless an exception applies. Check what is enacted and in force.
Key takeaways
- Sick leave, holiday, family leave, TUPE transfers, and a change of role with the same employer do not break continuity of employment.
- Continuity is also preserved through temporary cessations of work and moves between associated employers; strikes don't break it (but don't count).
- A genuine permanent break (leaving and later re-joining under a new engagement) can break it, check borderline gaps against the statutory rules.
- Continuity matters for notice, redundancy pay and unfair dismissal eligibility; check the current qualifying period requirements.
Sources
- Employment Rights Act 1996, ss 210–219 (computation and preservation of continuous employment; weeks that count; temporary cessation)
- TUPE, Transfer of Undertakings (Protection of Employment) Regulations 2006 (continuity on business transfers)
- Proposed employment reform legislation (check whether enacted and in force at the relevant date)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.