Career breaks

We have been trying to negotiate career breaks for staff, but were concerned to hear about a court ruling implying that workers who take such breaks lose all of their accumulated employment rights. Is this correct?

There was a Court of Appeal ruling earlier this year that held that in the absence of any "mutual recognition [by the arrangement] that the ex-employee, although absent from work, nevertheless continued in the employment of the employer" the contract did not continue during the period of the break.

However, more recently the EAT considered another case where an employee had taken a career break. Taking the Court of Appeal ruling into account, the EAT held there could still be cases where the employment relationship continued, and therefore the employee did not lose her accrued employment rights.

In this case the EAT noted that the employee continued to enjoy some benefits from her employment, such as a loan under concessionary terms. These provisions, "though modest in quantity", according to the ruling, were enough to show that the employment relationship continued.

* More information: Curr v Marks & Spencer [2003] IRLR 73; Unwin v Barclays Bank EAT/0273/02