Continuous service and redundancy eligibility

For statutory redundancy pay, the usual minimum is 2 full years of continuous service by the relevant date. In practice, most disputes happen because HR and the employee count service dates differently, especially after transfers, role changes, or short breaks.

What the 2-year rule means in practice

Eligibility is not based on rough time worked. It depends on exact dates. If you are near the threshold, one payroll week can decide whether you qualify. This is why your start date, transfer paperwork, and end date in the redundancy letter all matter.

If your employer says you are short of 2 years, ask them to confirm the exact start date they used and the exact date they treated as termination.

What usually keeps continuity

• TUPE transfers where employment moves to a new employer but continuity is preserved.
• Internal role changes within the same employer.
• Common contract changes that do not legally end employment.

If your employment moved under TUPE, pre-transfer service can often count toward both eligibility and the final redundancy calculation. Use our TUPE and redundancy pay guide and then run the redundancy calculator.

What can break continuity

• A genuine break where the old contract ends and no preserving rule applies.
• Long gaps between employments with no continuity protection.
• Incorrect assumptions that agency periods or previous employers automatically count.

Some gaps can still be protected depending on circumstances, so avoid assuming either way until dates and documents are checked.

Simple timeline example

Example: start date 15 April 2024, redundancy date 20 April 2026. That normally clears 2 full years. But if the employer uses a different end date from the consultation process, the result can change. Always check the formal termination date used in the written calculation.

Checklist before accepting HR numbers

• Keep your original contract start date and any TUPE transfer letter together.
• Ask for a written breakdown of years counted for eligibility and for payment.
• Check that notice pay and redundancy pay are shown separately.
• If a break in service is claimed, ask which legal reason was used.

Official sources

• GOV.UK: Redundancy rights
• GOV.UK: Continuous employment
• GOV.UK: Redundancy in a transfer (TUPE)
• Acas: Redundancy pay

Information only, not legal advice.