A fixed-term or seasonal contract is a temporary employment contract with a defined start and end date. Although it does not provide permanent employment, it is still a valid contract of employment.
Continuity of service refers to the length of uninterrupted employment with an employer. It is important because certain rights, such as protection from unfair dismissal and entitlement to statutory redundancy pay, usually arise after two years’ continuous service.
Even if a fixed-term contract ends, continuity of service does not automatically break. Where an individual returns to the same employer season after season, the gap between contracts may be considered a temporary cessation of work rather than a true break in employment.
To qualify as a temporary cessation, the work must genuinely have stopped. The employee’s absence must be because of that stoppage, and the stoppage must be temporary.
Employment Tribunals assess this on a case-by-case basis, often comparing the length of time worked with the length of the break. Short, regular gaps, particularly where the same individuals return each year, increase the likelihood that continuity will be preserved.
The practical implication for employers is that, if continuity is preserved and the individual reaches two years’ service, they may gain statutory employment protections. Employers using seasonal workers should therefore review working patterns, contracts and record-keeping to manage the risk of unintended continuous service.
A policy should be included in the company handbook for managers to follow.
If you need any further advice and help, please do not hesitate to contact the Quest HR Advice Line on 01455 852028.
