Many UK employment rights depend on length of continuous service rather than applying from day one. Continuous employment is the measure of that service, and preserving or breaking it has significant consequences.
What it unlocks
- Statutory notice entitlement, rising with each complete year
- Statutory redundancy pay, after a qualifying period
- Protection from ordinary unfair dismissal, after a qualifying period
- Various family-related leave and pay entitlements
What preserves it
Continuity survives many interruptions that might appear to break it, including sickness absence, family leave, and periods where the employment relationship continues without work. Critically, it also survives a TUPE transfer, so employees moving to a new employer under a business or service transfer carry their accrued service with them.
Why it matters when hiring internationally
This is directly relevant to companies moving employees between arrangements — from an Employer of Record onto their own newly incorporated UK entity, for example. If the move is a TUPE transfer, continuity is preserved and the employees' accrued rights come across. Assuming a fresh start, and issuing contracts on that basis, is a common and consequential mistake.