Substantial-Continuity Doctrine Law and Legal Definition

Substantial continuity doctrine is a principle of labor law where by a successor corporation is made liable for the acts of its predecessor corporation, if the successor retains the same business as the predecessor, with the same employees, doing the same jobs, for the same supervisors, under the same working conditions, and using the same production processes to produce the same products for the same customers. The purchaser is treated as a mere continuation of the seller when there is an identity of stock, stockholders, directors as well as of management, personnel, physical location and operations.

Substantial continuity doctrine is also known as the continuity-of-enterprise doctrine.