A career break is a term used to define a long period of unpaid leave during which the employment contract remains intact. However, sometimes employers will request that employees going on a career break resign and then re-apply for their job, if available, when they are ready to return to work.

There is no statutory right to a career break, and it is at an employer’s discretion whether to offer a career break and on what terms.

It is crucially important to document, in writing, the terms and conditions of the career break either in the contract of employment or (more commonly) as a separate policy. It will usually be in the interests of most employers for the career break policy to be non-contractual, as this will prevent any future claims for breach of contract being made. However, if the employer’s policy requires the employee to resign, the employer is likely to find that there is little desire to take a career break without some guarantee of a return to work.

Employers should also be aware that if employment is continuing during the career break, employees can still be entitled to certain fundamental rights e.g. annual leave (provided that the career break is to take on a caring or research role and not simply an extended period of relaxation), which will not be financially advantageous to an employer.

It is unsurprising that employers may prefer to suspend the employment relationship during a career break. This will enable the employer to avoid remunerating the employee (including sick pay and bonus payments). However, suspending the employment contract could generate ambiguity unless the employer clearly sets out in writing what terms are not applicable during the break.

Ultimately a career break can be beneficial to both employer and employee. For example, by improving long term employee retention or by enabling an employee to develop new, transferable skills. However, it is paramount that the terms and conditions of any such break are clearly documented and agreed.