1.—(1) Section 42 (payments out of Redundancy Fund to employees) shall be amended as follows.
(2) After subsection (1) insert—
“(1A) In this Act “employer’s payment”, in relation to an employee, means—
(a)a redundancy payment which his employer is liable to pay to him under Part II; or
(b)a payment which his employer is, under an agreement in respect of which an order is in force under section 21, liable to make to him on the termination of his contract of employment.
(1B) In relation to a case where, under section 14, 20 or 47, an industrial tribunal determines that an employer is liable to pay only part of a redundancy payment, the reference in subsection (1A)(a) to a redundancy payment shall be construed as a reference to that part of the redundancy payment.”.
(3) In subsection (2), for “section 40(1)” substitute “subsection (1A)”.
(4) Omit subsection (4).