Holt v EB Security Ltd – In Liquidation 2012 AER 152

Mr Holt had been employed with Prosec at a public house from July 2007 to 3 March 2009. His employment with EB commenced on 16 March 2009 and ended on 11 January 2010. Prosec and EB were associated employers. Mr Holt brought proceedings for unfair dismissal against EB but the Tribunal found that the gap in his employment between 3 -16 March was fatal to his contention that he had qualifying service between the two associated employers. Mr Holt appealed.

The material issue on appeal was whether there had been a temporary cessation of his employment. Although the public house had closed, Mr Holt had shortly after that secured employment with an associated employer in a different role. Thus, the reason for his absence of two weeks was a temporary cessation of work. Accordingly, he had been continuously employed. The cessation of work between 3-16 March was temporary looking back from the vantage point of his employment with EB and his claim for unfair dismissal could proceed.

Key point: Where there is a change of employer this does not break the continuity of the period of employment if they are associated employers.

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