Continuous employment defined

When a new employee is added to the payroll it is the employers' responsibility to ensure they meet the employees’ rights. One of the issues that must be considered is the employees’ length of continuous employment. Continuous employment is

When a new employee is added to the payroll it is the employers' responsibility to ensure they meet the employees’ rights. One of the issues that must be considered is the employees’ length of continuous employment. Continuous employment is calculated from the first day of work without a break.

The length of continuous employment gives certain rights to employees, including maternity pay, flexible working requests and redundancy pay.

Infrequent breaks in normal employment still count towards a continuous employment period. These are:

  • sickness, maternity, paternity, parental or adoption leave
  • annual leave
  • employment overseas with the same company
  • time between unfair dismissal and an employee being reinstated
  • when an employee moves between associated employers
  • military service, for example with a reserve force
  • temporary layoffs
  • employer lockouts
  • when a business is transferred from one employer to another
  • when a corporate body gets taken over by another because of a legal change

Any days that an employee is on strike do not count towards continuous employment, but the days are not treated as a break.

Source: HM Revenue & Customs Tue, 27 Jul 2021 00:00:00 +0100

Latest INSIGHTS

Check out our latest Insights for useful accounting tips and information.

Paying VAT on goods from EU to Northern Ireland

There are special procedures for moving goods in and out of Northern Ireland. Under the Northern Ireland Protocol, all Northern Ireland businesses continue to have access to the whole UK market.

There is specific guidance published by HMRC that

Read More

VAT retail schemes

VAT retail schemes are a special set of schemes used by retail businesses to account for VAT. The schemes are used by businesses that sell a significant amount of low value and/or small quantity items to the public with different VAT

Read More

Termination payment clearance process

The tax treatment of termination payments has changed significantly over recent years. The changes have aligned the rules for tax and secondary National Insurance contributions (employer (NICs)) by making an employer liable to pay NICs on termination

Read More