5.—(1) This paragraph applies if rights and liabilities under a contract of employment are transferred by virtue of a scheme.
(2) The contract of employment—
(a)is not terminated by the transfer, and
(b)has effect from the transfer date as if made between the employee and the successor company.
(3) Except as provided by the scheme, the rights, powers, duties and liabilities of the Department under or in connection with the contract are transferred to the successor company on the transfer date.
(4) Except as so provided, anything done before the transfer date by or in relation to the Department in respect of the contract or the employee is to be treated from that date as having been done by or in relation to the successor company.
(5) But if an employee informs the Department before the transfer date that he objects to the transfer of his contract of employment under the scheme—
(a)sub-paragraphs (2) to (4) do not apply in relation to his contract of employment; and
(b)his employment with the Department is terminated immediately before the transfer date.
(6) A person is not to be treated as having been dismissed by the Department by reason of—
(a)the transfer of his contract of employment under this paragraph; or
(b)the termination of his employment under sub-paragraph (5).
(7) This paragraph does not affect any right a person has to terminate his contract of employment if (apart from the change of employer) a substantial change is made to his detriment in his working conditions.
(8) For the purposes of this paragraph, if a person is employed in the civil service on terms which do not constitute a contract of employment—
(a)he is to be treated as employed by the Department by virtue of a contract of employment;
(b)the terms of that employment are to be regarded as constituting the terms of that contract.