Former COO fails to establish continuity of employment after moving to new company
A former COO and director of a digital publishing company could not claim unfair dismissal or a redundancy payment because he did not have sufficient continuous employment. The tribunal ruled there was no TUPE transfer, associated employer relationship, or successor employer.
1 min read · Last updated 18 May 2026
Case details
- #continuity-of-employment
- #tupe
- #associated-employer
- #successor-employer
- #preliminary-hearing
- #strike-out
Key facts
- The claimant resigned as a director and employee of Iconic Labs plc on 31 January 2021.
- The claimant was offered and accepted employment with the respondent from 1 February 2021.
- The claimant had not accumulated sufficient continuous employment to claim unfair dismissal or a redundancy payment.
- The respondent was not an associated employer of Iconic Labs plc.
- There was no TUPE transfer of an economic entity from Iconic to the respondent.
- The claimant's resignation was not a dismissal because of a relevant transfer.
Timeline
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Claimant employed by Wide Cells plc (later Iconic Labs plc)
The claimant began employment with Wide Cells plc, which later rebranded to Iconic Labs plc.
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Linton Capital acquired stake in The London Economic
Linton Capital LLP acquired a 51% stake in The London Economic through a subsidiary.
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GAL acquired JOE Media assets
Greencastle Acquisition Ltd, through the respondent, acquired the business and assets of JOE Media Limited.
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Action plan shared with Iconic Board
Mr Sefton shared an action plan with the Iconic Board outlining options including a transition to Greencastle Media Group.
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Claimant resigned from Iconic
The claimant resigned as a director, officer and employee of Iconic Labs plc with immediate effect.
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Claimant started employment with respondent
The claimant was offered and accepted employment with Greencastle MM LLP as interim CEO of JOE Media UK.
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Claimant lodged redundancy appeal
The claimant lodged an appeal against his redundancy.
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Claimant lodged ET claim
The claimant lodged his employment tribunal claim.
The legal issue
The tribunal had to decide whether the claimant's employment with the respondent was continuous with his previous employment at Iconic Labs plc, considering whether there was a TUPE transfer, an associated employer relationship, or a successor employer.
The outcome
The tribunal decided that the claimant did not have sufficient continuous employment to bring claims for unfair dismissal or a redundancy payment.
Key reasons:
- The claimant resigned from Iconic Labs plc on 31 January 2021 and started work with the respondent on 1 February 2021 as a new employee.
- The respondent was not an associated employer of Iconic Labs plc.
- There was no TUPE transfer of an economic entity from Iconic to the respondent.
- The claimant's resignation was not a dismissal because of a relevant transfer.
No compensation was awarded as the claim on this issue failed.
Lessons & takeaways
- If you resign from one company and start working for another the next day, you may not have continuous employment unless there is a TUPE transfer or the employers are associated.
- Check whether your new employer is 'associated' with your old one (e.g., under common control) to preserve continuity of employment.
- A TUPE transfer requires the transfer of an economic entity that retains its identity; simply moving to a company that acquired some assets is not enough.
- Continuity of employment is a statutory concept and cannot be created by agreement between the parties.
- If you are relying on continuity to bring a claim, ensure you have evidence of a transfer or association before resigning.
When a move between companies is a fresh start
This case highlights a common trap for employees who move between companies in a group or after an acquisition. The claimant, a former COO and director of Iconic Labs plc, resigned on 31 January 2021 and began working for Greencastle MM LLP the following day. He later brought claims for unfair dismissal and a redundancy payment, arguing that his employment was continuous because of a TUPE transfer or because the companies were associated.
What the tribunal decided
The tribunal examined the relationship between Iconic Labs and Greencastle. Although Greencastle had acquired some assets from JOE Media (which was linked to Iconic), there was no transfer of an economic entity that retained its identity. The companies were not under common control, so they were not associated employers. The claimant's resignation was a voluntary end to his employment with Iconic, not a dismissal triggered by a transfer.
What could have been done differently
The claimant might have sought legal advice before resigning to understand whether his continuity would be preserved. Alternatively, he could have negotiated a settlement with Iconic or ensured that his new contract explicitly acknowledged continuous service. The respondent, for its part, had clearly structured the appointment as a new start, which the tribunal accepted.
Why this matters
For employees, continuity of employment is essential for many statutory rights, including unfair dismissal and redundancy pay. A gap of even one day can break continuity, unless a statutory exception applies. This case serves as a reminder that moving to a new employer, even one that has acquired some of your old employer's business, does not automatically preserve your service record.
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