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38.—(1) The compensating authority shall, within a period of 2 years after the date on which any decision on a claim for long-term or retirement compensation for loss of employment (other than compensation payable under regulation 23 of these regulations) or for loss or diminution of pension rights associated with loss of employment is notified to a claimant under regulation 40 of these regulations, review their decision or, where the claim has been the subject of an appeal, the decision of the tribunal, at intervals of not more than 6 months, and these regulations shall apply in relation to any such review as they apply in relation to the initial determination of the claim; and on such review, in the light of any material change in the circumstances of the case, compensation may be awarded, or compensation previously awarded may be increased, reduced or discontinued, subject to the limits set out in these regulations.
(2) The claimant may require the compensating authority to carry out the review mentioned in the last foregoing paragraph at any time within the period of 2 years mentioned in that paragraph if he considers that there has been a change in the circumstances of his case which is material for the purposes of these regulations.
(3) The compensating authority shall carry out a review in accordance with paragraph (1) of this regulation, notwithstanding the expiration of the period mentioned in that paragraph, if—
(a)the emoluments of employment or work undertaken in place of the employment which has been lost had been taken into account in determining the amount of any compensation awarded, and
(b)such employment or work has been lost or the emoluments thereof reduced, otherwise than by reason of misconduct or incapacity to perform such duties as the claimant might reasonably have been required to perform, and
(c)the compensating authority is satisfied that such loss or reduction is causing hardship to the claimant,
and, where any decision is so reviewed, the decision shall be subject to further review in accordance with paragraph (1) of this regulation as if the review carried out under this paragraph had been the initial determination of the claim.
(4) Paragraphs (1) and (2) of this regulation shall apply in relation to any decision on a claim for long-term or retirement compensation in respect of diminution of emoluments or loss or diminution of pension rights associated with diminution of emoluments as they apply in respect of any decision mentioned in the said paragraph (1):
(i) no review shall take place after the date on which the claimant ceases to hold the employment in which his emoluments were diminished, except a review as at that date; and
(ii) while the claimant continues to hold that employment there shall be no limit to the period within which a review may take place.
(5) Notwithstanding anything contained in the foregoing provisions of this regulation, the compensating authority shall review a decision (whether of the authority or the tribunal) on a claim for long-term compensation for loss of employment or diminution of emoluments after the expiration of any period within which a review is required to be made if at any time—
(b)the aggregate of the net emoluments of his current employment, of any superannuation benefit by way of annual amounts payable to him in respect of the employment which he has lost and of the long-term compensation payable to him exceeds the net emoluments of such last-mentioned employment or, as the case may be, the amount of his net emoluments prior to their diminution,
and the authority shall thereafter further review such decision whenever the net emoluments of the claimant's current employment are increased; but, if on any such review the compensation is reduced, it shall not be reduced below the amount by which the net emoluments of the claimant's current employment, together with any superannuation benefit by way of annual amounts payable to him in respect of the employment which he has lost, fall short of the net emoluments of such last-mentioned employment or, as the case may be, the amount of his net emoluments prior to their diminution.
(6) The compensating authority shall give to a claimant not less than 14 days notice of any review to be carried ont under this regulation otherwise than at his request.
(7) Nothing in this regulation shall preclude the making of any adjustment of compensation required by regulation 35 or 36 of these regulations.