The Employment Appeal Tribunal has held in Holt v EB Security Limited that, where there was a ‘temporary cessation of work’ between employment by two associated employers, continuity of employment was not broken.
What does this mean?
Continuity of employment may be preserved where an employee leaves their job and is employed by an employer who is associated with the first employer, even if there is a temporary gap between the two jobs.
What should employers do?
The length of an employee’s service is important as a number of rights depend on a particular length of service. Employers transferring employees between associated organisations should consider amending their staff records accordingly and take specific legal advice if in any doubt.