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(1)The M1Transfer of Undertakings (Protection of Employment) Regulations 1981 shall be amended as follows.
(2)In Regulation 2(1), in the definition of “undertaking” (which excludes from the Regulations undertakings, and parts of undertakings, not in the nature of a commercial venture), the words from “ but does not ” to the end shall cease to have effect.
(3)In Regulation 3(4) (transfers to which the Regulations apply), for the words from one to the end there shall be substituted the words “one—
(a)may be effected by a series of two or more transactions; and
(b)may take place whether or not any property is transferred to the transferee by the transferor.”.
(4)In Regulation 5 (effect of relevant transfer on contracts of employment, etc)—
(a)in paragraph (1), at the beginning, there shall be inserted the words “ Except where objection is made under paragraph (4A) below, ”;
(b)in paragraph (2) after the words paragraph (1) above there shall be inserted the words “ but subject to paragraph (4A) below, ”;
(c)after paragraph (4), there shall be inserted—
“(4A)Paragraphs (1) and (2) above shall not operate to transfer his contract of employment and the rights, powers, duties and liabilities under or in connection with it if the employee informs the transferor or the transferee that he objects to becoming employed by the transferee.
(4B)Where an employee so objects the transfer of the undertaking or part in which he is employed shall operate so as to terminate his contract of employment with the transferor but he shall not be treated, for any purpose, as having been dismissed by the transferor.”; and
(d)in paragraph (5), for the words Paragraph (1) above is there shall be substituted the words “ Paragraphs (1) and (4A) above are ”.
(5)Regulation 7 (exclusion of occupational pension schemes) shall be re-numbered as paragraph (1) of that Regulation and after that provision as so re-numbered there shall be inserted—
“(2)For the purposes of paragraph (1) above any provisions of an occupational pension scheme which do not relate to benefits for old age, invalidity or survivors shall be treated as not being part of the scheme.”.
(6)At the end of Regulation 10(5) (duty to consult) there shall be added the words “ with a view to seeking their agreement to measures to be taken. ”.
(7)In Regulation 11 (remedies for failure to inform or consult)—
(a)paragraph (7) (deduction from compensation of any payments relating to failure to consult on redundancy) shall cease to have effect, and
(b)in paragraph (11) (compensation subject to maximum of two weeks’ pay for employee in question), for the words two weeks’ pay there shall be substituted the words “ four weeks’ pay ”.
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