Employment Protection (Consolidation) Act 1978

Payment of previous redundancy payment or equivalent payment

12 (1) Where the conditions mentioned in sub-paragraph (2)(a) or (2)(b) are fulfilled in relation to a person, then in determining, for the purposes of section 81(1) or Schedule 4, whether at any subsequent time he has been continuously employed for the requisite period, or for what period he has been continuously employed, the continuity of the period of employment shall be treated as having been broken—

(a) in so far as the employment was under a contract of employment, at the date which was the relevant date in relation to the payment mentioned in sub-paragraph (2)(a) or, as the case may be, sub-paragraph (2)(b); or

(b) in so far as the employment was otherwise than under a contract of employment, at the date which would have been the relevant date in relation to that payment had the employment been under a contract of employment,

and accordingly no account shall be taken of any time before that date.

(2) Sub-paragraph (1) has effect—

(a) where—

(i) a redundancy payment is paid to an employee, whether in respect of dismissal or in respect of lay-off or short-time ; and

(ii) the contract of employment under which he was employed (in this section referred to as " the previous contract") is renewed, whether by the same or another employer, or he is re-engaged under a new contract of employment, whether by the same or another employer; and

(iii) the circumstances of the renewal or re-engagement are such that, in determining for the purposes of section 81(1) or Schedule 4 whether at any subsequent time he has been continuously employed for the requisite period, or for what period he has been continuously employed, the continuity of his period of employment would, apart from this paragraph, be treated as not having been broken by the termination of the previous contract and the renewal or re-engagement; or

(b) where—

(i) a payment has been made, whether in respect of the termination of any person's employment or in respect of lay-off or short-time, either in accordance with any provisions of a scheme under section 1 of the [1972 c. 11.] Superannuation Act 1972 or in accordance with any such arrangements as are mentioned in section 111(3); and

(ii) he commences new, or renewed, employment; and

(iii) the circumstances of the commencement of the new, or renewed, employment are such that, in determining for the purposes of section 81(1) or Schedule 4 whether at any subsequent time he has been continuously employed for the requisite period, or for what period he has been continuously employed, the continuity of his period of employment would, apart from this paragraph, be treated as not having been broken by the termination of the previous employment and the commencement of the new, or renewed, employment.

(3) For the purposes of this paragraph, a redundancy payment shall be treated as having been paid if—

(a) the whole of the payment has been paid to the employee by the employer, or, in a case where a tribunal has determined that the employer is liable to pay part (but not the whole) of the redundancy payment, that part of the redundancy payment has been paid in full to the employee by the employer, or

(b) the Secretary of State has paid a sum to the employee in respect of the redundancy payment under section 106.