An ARQ method using Incremental Redundancy that can be used in either synchronous or asynchronous communication systems. Information received by receiving equipment contains a one-bit NEW/CONTINUE flag indicating whether the received information is the beginning of new information or the continuation (or retransmission) of previously transmitted information. An ACK message is transmitted by the receiving equipment when such equipment receives information containing a NEW flag and successfully decodes such information. The receiving equipment also transmits an ACK message when it receives information containing a CONTINUE flag while it was waiting for NEW information. Thus, the method of the present invention allows for relatively quick recovery from misinterpretations of ACK/NACK messages and accommodates subscribers having different transmission requirements.