Suitable alternative employment: continuity and pay in pre-start gap

Published by a LexisNexis Employment expert

Q&As

If an employee dismissed by reason of redundancy is invited to return to their former post, or to take up another position (with the same employer or an associated employer), and they resume work within four weeks of the previous employment ending, they are treated as not dismissed and have no entitlement to a redundancy payment (section 138(1) of the Employment Rights Act 1996 (ERA 1996)). For more detail, see Practice Note: Renewal of contract, re-engagement and trial periods.

On whether an employee’s continuity of employment is preserved during the interval between the old role ending and the new role commencing in those circumstances, see, generally, the following Practice Notes:

Continuity of employment
How to determine continuity of employment

Working out an employee’s period of continuous employment with an employer is relevant to qualifying for certain statutory rights under the Employment Rights Act 1996 (ERA 1996).

There is a prescribed approach to calculating continuity that overrides any agreement between employer and employee (see: ERA 1996, ss 210–219)...

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Web page updated on 27/05/2026

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