Workplace Report February 2006

Features: Law Contracts

Continuity of employment

Case 12: The facts

Mrs Bunker worked for her employer for 20 years in a variety of roles. When she handed in her notice because she was moving to a new area, her employer suggested that she and her husband set up a new office in that area – an offer that they accepted.

During the two-week gap between leaving her old job and starting in the new office, Bunker was not paid but did have a company car, fuel card and mobile phone.

The issue was whether she retained continuity of service during this period, giving her the necessary year’s service to bring a claim of unfair dismissal.

The ruling

The Employment Appeal Tribunal (EAT) noted that Bunker had handed in and not rescinded her notice, and that her new contract had specifically identified her continuous employment as starting on the date she began work in the new office.

For continuity to be preserved, the EAT said, some arrangement establishing this must be in place. The tribunal had not established that there had been any discussion or agreement to regard the employment relationship as continuous for any purpose, so the case was sent to a different tribunal for re-hearing.

Mark Insulations Ltd v Bunker UKEAT/0331/05