The Education (Reorganisation in Inner London) (Compensation) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made for the purposes of section 173 of the Education Reform Act 1988, and accordingly constitute the only statutory provision under which compensation may be paid in cases falling within section 173(1) and (2) (certain persons suffering loss of employment or loss or diminution of emoluments which is attributable to provision made by or under Part III of the Act).

In Part II of these Regulations, which deals with loss of employment, regulation 3 requires the maximum lump sum and annual compensation under the existing regulations there mentioned to be paid where the person is 50 or over and it has been certified that his employment was terminated by reason of redundancy. In other cases where there is an entitlement to a redundancy payment under the Employment Protection (Consolidation) Act 1978, lump sum compensation is payable and is to be calculated by reference to that Act as modified by the Regulations (regulation 4).

In Part III, which deals with loss or diminution of emoluments, regulation 6 defines “emoluments” and regulation 7 sets out the conditions of entitlement. Regulation 8 requires annual compensation, calculated by reference to the difference between former and current emoluments, to be paid for up to 8 consecutive 12-month periods. Regulation 9 concerns changes of employment subsequent to the initial loss or diminution.

The miscellaneous provisions in Part IV require certain increases and decreases in emoluments to be left out of account (regulation 10), deal with the payment of compensation and in particular allow advance payments to be made on account of Part III compensation (regulation 11), and provide for questions to be determined in the first instance by the London Residuary Body, and in cases of dispute or default by an industrial tribunal (regulation 12).

Section 24 of the Superannuation Act 1972 confers express power to make regulations retrospective in effect. Regulation 2(2)(b) confers entitlement in relation to loss or diminution of emoluments occurring after 13th July 1989.