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Continuity of employment after retirement


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Not sure if this is the right forum. If not could a mod move it.

 

If I were to 'retire' on (say a) Friday (and take all my pension payments) and continue to work for the same company on the Monday, do I retain 'continuity of employment' for redundancy pay purposes.

 

Would I have to obtain a brand new contract with T&Cs, or could I just assume the previous one still applies?

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Hello there. Interesting question.

 

I think this is better suited to the employment forum here, where someone should know the answers.

 

When you say draw all your pensions, is one of the company sponsored by your current work please?

 

My best, HB

Illegitimi non carborundum

 

 

 

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Hello there. Interesting question.

 

When you say draw all your pensions, is one of the company sponsored by your current work please?

 

My best, HB

 

If I understand your question correctly. There is only one pension and yes it is the current employer who is the provider of the occupational pension I would draw on.

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If I understand your question correctly. There is only one pension and yes it is the current employer who is the provider of the occupational pension I would draw on.

 

Thank you for that. It's not really my field, but it's possible that could complicate it. I'll have a look on the interweb to see if anything helps, otherwise I hope the guys will be along when they can.

 

My best, HB

Illegitimi non carborundum

 

 

 

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Hello again. I've had a scout around and the sites I've found are really about pensions, not contracts, sorry.

 

I don't know much about contracts so hope someone with knowledge of them will be along soon. We have people with experience in various fields here so I hope you'll get an answer.

 

My best, HB

Illegitimi non carborundum

 

 

 

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OK the employer has now confirmed that I would sign a new contract of employment (identical to my old contract), but with a start date the day after I 'retire'. All T&Cs are identical except that they state they would use the new start date to calculate any long service awards and redundancy.

 

The Employment Rights Act 1996 states specifically that continuity of employment is not broken if there is less than 1 weeks break in employment 'under contract'. Also in Carrington v Harwich Dock Co the EAT ruled that "the wording of section 212 (1) was clear and that the employment obligations continued and there had been no break in service. The fact that new terms of employment had been signed by Mr Carrington which specifically stated that he was to regard himself as having no continuity of service was in the EAT's view of no effect, it being impossible for an individual to contract out of his/her rights as regards unfair dismissal".

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I expect that they could use the new start date to calculate long service awards and any enhanced contractual redundancy payments.

 

However, regardless of the terms of any new contract you sign because there will be no break in service you would still be entitled to your statutory rights. So, you would still be entitled to statutory redundancy pay, notice periods, the right to claim unfair dismissal etc.

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Thanks for that mariefab, it was exactly what I thought except I never though about enhanced contractual redundancy pay. I wouldn't have expected them to pay that anyway!

 

My employer used to be a really generous company. Over the nearly 20 years I've been there they have undertaken about 4 're-organisations' (culling) and every time they have paid handsome enhanced redundancy packages. But just recently I have noticed long term employees leaving quietly with little more than statutory redundancy payouts.

 

Hence my keenness to not get 'shafted' !!

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