One of the grounds on which an interval between two contracts of employment does not break continuity is that the employee is absent from work due to a temporary cessation of work. In a decision that will benefit many teachers and temporary workers, the House of Lords holds in Ford v Warwickshire County Council that it is not relevant that the interval was anticipated and lies between two fixed term contracts. The test in all cases is whether the gap is short In relation to the duration of the two contracts.
In Ross v Delrosa Caterers Ltd [1981] ICR 393 EAT, the Employment Appeal Tribunal held that, although continuity of employment is broken where a redundancy payment has been paid to an employee and the contract of employment is renewed or the employee re-engaged under a new contract, this is the case only if the redundancy payment is a statutory redundancy payment.
In Rowan v Machinery Installations (South Wales) Ltd [1981] IRLR 122 EAT, the EAT held that the Industrial Tribunal had erred in finding that the appellant's period of continuous employment had been broken when his contract of employment had been terminated by the respondents and he was paid an amount calculated in accordance with the statutory redundancy payment provisions, in circumstances in which there was no liability on the respondents to make a redundancy payment.
In Savage v J Sainsbury Ltd [1980] IRLR 109 CA, the Court of Appeal held that where a disciplinary procedure provides a right of appeal against dismissal and treats the employee as suspended without pay until the appeal is heard, the effective date of termination if the appeal is rejected is when the dismissal initially took effect and not when the appeal was rejected.