2. What are the legal implications if there is a break in the continuous employment?
Employees in continuous employment enjoy more statutory benefits than those not in continuous employment under the Employment Ordinance. See: "What is a 'continuous' contract of employment?".
As a general rule, if there is a break in continuous employment, the contract before the break and the new one after it will generally be treated as two separate contracts. Employees will not enjoy statutory benefits such as rest days, statutory holidays with pay, annual leave with pay, sickness allowance, severance payment and long service payment during the second contract until they have accumulated the required number of hours work again in the second contract under the "418 requirements".
There is an exception to the above general rule. If employees are still in continuous employment, they will be entitled to the statutory protection offered to those under continuous employment, such as severance payment, long service payment and so on. On the other hand, if they are not in continuous employment, they will not be entitled to them. See: "Under what circumstances is there a break in the continuous employment?".
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