The Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) 2003

Discretionary compensation for redundancy: general

5.—(1) This Part applies where a person –

(a) ceases to hold his employment with a Scheme employer;

(b) in respect of that cessation –

(i) has not lost his right to a redundancy payment under Part XI of the 1996 Order by agreement under Article 240(2) of that Order (agreements to exclude rights to redundancy payments on expiry of fixed term contracts);

(ii) may not count an additional period of membership under regulation 54 of the Pension Regulations (power of employing authority to increase total membership of members leaving employment at or after 50); and

(iii) either is not entitled to have his case considered for compensation under Part IV or is so entitled but has not been awarded a credited period;

(c) is over 18 and under 65 on the termination date;

(d) if under 50 on the termination date, is entitled to count a qualifying employment of at least two years; and

(e) has a total membership not exceeding 40 years.

(2) Where this Part applies, the Scheme employer may, not later than six months after the termination date, decide to pay compensation under this Part; and in that event shall, as soon as reasonably practicable after the decision, notify the person in whose favour it has been made, giving details of the calculation of the compensation.

(3) The amount of compensation must not exceed one week’s pay for each complete week between the termination date and the person’s 65th birthday and, subject to that, must not exceed 66 weeks' pay or, if less, whichever of sub-paragraphs (a) to (d) applies to him –

(a) if the employee is at least 18 but under 20 on the termination date, half a week’s pay for each complete year of qualifying employment after he became 18;

(b) if the employee is at least 20 but under 23 on the termination date –

(i) half a week’s pay for each complete year of qualifying employment after he became 18; and

(ii) an additional half a week’s pay for each complete year of qualifying employment after he became 20;

(c) if the employee is at least 23 but under 41 on the termination date, two weeks' pay for each complete year of qualifying employment after he became 18; or

(d) if the employee is at least 41 on the termination date –

(i) two weeks' pay for each complete year of qualifying employment after he became 18; and

(ii) an additional three weeks' pay for each complete year of qualifying employment after he became 41.

(4) Chapter IV of Part I of the 1996 Order (calculation of a week’s pay) shall apply for the purpose of calculations under paragraph (3) as it applies for the purpose of calculating redundancy payments but –

(a) with the substitution for references to the calculation date of references to the termination date; and

(b) without the limit in a week’s pay imposed by Article 231 of that Order.

(5) In calculating compensation under this Part the Scheme employer shall exclude any years of qualifying employment which that Scheme employer or any other Scheme employer has taken into account when calculating compensation already paid under these Regulations or other regulations made under Article 19 of the 1972 Order, other than years of concurrent qualifying employment.

(6) If the person in whose favour a decision under paragraph (2) has been made receives a redundancy payment under Part XII of the 1996 Order or compensation under Part II of these Regulations, the equivalent amount shall be deducted from the compensation otherwise payable to him under this Part.

(7) Compensation payable under this Part shall be paid by the Scheme employer, as soon as practicable after the decision under paragraph (2), in the form of a lump sum.