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7. (1) Subject to sub-paragraph (2), it shall be for the Board of Governors of any school to which this Schedule for the time being applies to determine—N.I.
(a)whether any payment should be made by the relevant board in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of the school; and
(b)the amount of any such payment.
(2) Sub-paragraph (1) does not apply in relation to any payment which is required or authorised to be made—
(a)by virtue of any contract other than one made in contemplation of the impending dismissal or resignation of the member of staff concerned; or
(b)under any statutory provision.
(3) The relevant board—
(a)shall take such steps as may be required for giving effect to any determination of the Board of Governors of any such school under sub-paragraph (1); and
(b)shall not make, or agree to make, any payment to which that sub-paragraph applies in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of any such school otherwise than in accordance with any such determination.
(4) Costs incurred by the relevant board in giving effect to any determination under sub-paragraph (1) in respect of any member of the staff of any such school shall not be met from the school's budget share for any financial year except in so far as the board has good reason for deducting those costs, or any part of those costs, from that share.
(5) The fact that the employing authority has a policy precluding dismissal of its employees by reason of redundancy is not to be regarded as a good reason for the purposes of sub-paragraph (4).
(6) In this paragraph “the relevant board” means—
(a)in relation to a member of the staff of a controlled school, the board responsible for the management of the school;
(b)in relation to a member of the staff of a maintained school, the board by which the school is maintained.
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