The Local Government Reorganisation (Compensation for Redundancy or Loss of Remuneration) (Education) Regulations 1996

PART II COMPENSATION FOR REDUNDANCY

Interpretation of Part II

3.  In this Part “the prescribed period” means—

(a) in respect of a relevant body in England, the period beginning on the day on which the section 17 order is made and ending 18 months after the reorganisation date; and

(b) in respect of a relevant body in Wales, the period from 1st January 1996 to 30th September 1997.

Persons to whom Part II applies

4.—(1) This Part applies to a person who—

(a) ceases during the prescribed period to hold his employment with a relevant body by reason of redundancy or in the interests of the efficient exercise of that body’s functions;

(b) immediately before he ceased to hold his employment was in relevant employment; and

(c) meets the prescribed conditions.

Prescribed conditions

5.—(1) The provisions of the following paragraphs are prescribed conditions for the purposes of regulation 4.

(2) The first condition is that the person has on the material date—

(a) attained the age of 18 but has not attained the age of 50 and is entitled to count relevant local government service or qualifying employment amounting in total to not less than 2 years; or

(b) has attained the age of 50 but has not attained the age of 65.

(3) The second condition is—

(a) where the relevant body was an abolished authority, that the body which is specified in Part I of the Schedule as the successor in relation to that body certifies that—

(i) the person would otherwise have been entitled to payment under these Regulations; and

(ii) the loss of employment was attributable to a section 17 order;

(b) where the relevant body is a local education authority in England other than an abolished authority, that it certifies that the loss of employment is attributable to a section 17 order;

(c) where the relevant body was an old authority as defined in section 64(1) of the 1994 Act, that the body which is specified in Part II of the Schedule as the successor in relation to that relevant body certifies that—

(i) the person would otherwise have been entitled to payment under these Regulations; and

(ii) the loss of employment was attributable to any provision made by or under the 1994 Act; or

(d) where the relevant body is a county council or county borough council established under the 1994 Act, that it certifies that the loss of employment is attributable to any provision made by or under that Act.

(4) The third condition is that the person is not a person who has entered into an agreement as is mentioned in section 142(2) of the 1978 Act to exclude any right to a redundancy payment under Part VI of that Act and on whose cessation of employment on the material date such exclusion takes effect.

(5) The fourth condition is that—

(a) the person has not been made an offer as set out in section 82(3) of the 1978 Act (as modified by the Redundancy Payments (Local Government) (Modification) Order 1983); or

(b) if he has been made such an offer—

(i) in circumstances where the conditions in subsection (5)(a) or (b) of that section apply, he must have reasonably refused that offer; or

(ii) in circumstances where the conditions in subsection (6) of that section apply and he enters into a trial period as referred to in that subsection, he must have reasonably terminated the contract or have reasonably given notice to terminate it where the contract is, in consequence, terminated.

Computation of compensation

6.—(1) Before the relevant date a relevant body—

(a) shall determine to pay the compensation prescribed in regulation 7(2) to a person who meets the requirements of regulation 7(1);

(b) may determine to pay the compensation prescribed in regulation 7(5) to a person who meets the requirements of regulation 7(1);

(c) may determine to pay the compensation prescribed in regulation 8 to a person who meets the requirements of regulation 8(1);

(d) may determine to pay the compensation prescribed in regulation 9 to a person who meets the requirements of regulation 9(1); and

(e) may determine to pay the compensation prescribed in regulation 10 to a person to whom they have determined to pay the compensation prescribed in regulation 8 or 9 as the case may be.

(2) In paragraph (1)—

(a) “the relevant date” is

(i) 1st December 1996; or

(ii) the date six months after the material date, whichever occurs later; and

(b) in any case to which regulation 5(3)(a) or (c) applies, the reference to the relevant body shall be a reference to the body which is specified in the Schedule as the successor to the relevant body by whom the person was employed immediately before he ceased to hold his employment.

(3) Where—

(a) in accordance with paragraphs (1) and (2) a payment is to be made by a body specified in Part II of the Schedule as a successor authority; and

(b) the area of the old authority as referred to in regulation 5(3)(c) is divided among two or more new local government areas by the 1994 Act,

no compensation shall be paid by the successor authority under sub-paragraphs (b), (c), (d) or (e) of paragraph (1) unless the council of each such new local government area has consented to the payment.

General mandatory compensation and additional discretionary compensation

7.—(1) This regulation applies to a person to whom this Part applies and who, on the material date—

(a) has attained the age of 18 but has not attained the age of 50 and who is entitled to count relevant local government service or qualifying employment amounting in total to not less than 2 years; or

(b) has attained the age of 50 and who is entitled to count relevant local government service or qualifying employment amounting in total to less than 2 years.

(2) The compensation payable under regulation 6(1)(a) shall be an amount equal to the lesser of—

(a) a sum equivalent to 66 weeks' pay; or

(b) the relevant total sum referred to in paragraphs (3) and (4).

(3) In the case of cessation of employment before the age of 23 the relevant total sum shall be—

(a) a sum equivalent to one half week’s pay for each complete year of relevant local government service after the attainment of age 18; and

(b) where such cessation is on or after the attainment of age 20, a sum equivalent to one half week’s pay for each complete year of relevant local government service after the attainment of age 20.

(4) In the case of cessation of employment on or after the attainment of age 23 the relevant total sum shall be—

(a) a sum equivalent to 2 weeks' pay for each complete year of relevant local government service after the attainment of age 18; and

(b) where such cessation is on or after the attainment of age 41, a sum equivalent to 3 weeks' pay for each complete year of relevant local government service after the attainment of age 41.

(5) The compensation which may be payable under regulation 6(1)(b) is such sum which when aggregated to the compensation payable under regulation 6(1)(a) shall not exceed the lesser of—

(a) a sum equivalent to 66 weeks' pay; or

(b) the relevant total sum calculated in accordance with the formula set out in paragraph (3) or (4) as applicable but with the substitution for the words “relevant local government service” of the words “qualifying employment”.

Discretionary compensation for certain persons

8.—(1) This regulation applies to a person to whom this Part applies and who—

(a) ceases employment on or after the attainment of age 50; and

(b) is entitled to count relevant local government service or qualifying employment amounting in total to 2 or more but less than 5 years.

(2) The compensation which may be payable under regulation 6(1)(c) shall be the relevant total sum calculated in accordance with paragraph (3);

(3) The relevant total sum shall be—

(a) a sum equivalent to one and one half weeks' pay for each complete year of relevant local government service after the attainment of age 18;

(b) a sum equivalent to two and one half weeks' pay for each complete year of relevant local government service after the attainment of age 41; and

(c) a sum equivalent to one half week’s pay.

(4) No payment shall be made to a person under this regulation unless—

(a) the person gives written consent to such payment after receipt of the written notification referred to in regulation 12; and

(b) he waives his right to the immediate payment of benefits under regulation E4(7) of the 1988 Regulations.

Discretionary compensation for certain persons

9.—(1) This regulation applies to a person to whom this Part applies and who—

(a) ceases employment on or after the attainment of age 50; and

(b) is entitled to count relevant local government service or qualifying employment amounting in total to not less than 5 years.

(2) The compensation which may be payable under regulation 6(1)(d) to a person shall be an amount equal to the lesser of—

(a) a sum equivalent to 45 weeks' pay; or

(b) the relevant total sum calculated in accordance with regulation 8(3).

(3) If a relevant body determines to pay to a person the compensation prescribed in this regulation they shall not credit that person with a period of service under regulation 6(1) of the 1989 Regulations.

Further discretionary compensation

10.—(1) The compensation which may be payable under regulation 6(1)(e) is such sum which, when aggregated to the compensation payable under regulation 8 or 9 as the case may be, shall not exceed the relevant maximum.

(2) In paragraph (1) “relevant maximum” means the lesser of—

(a) a sum equivalent to 66 weeks' pay; and

(b) the total of—

(i) a sum equivalent to 2 weeks' pay for each complete year of relevant local government service after the attainment of age 18; and

(ii) a sum equivalent to 3 weeks' pay for each complete year of relevant local government service after the attainment of age 41.

Offset of redundancy payment and other payments

11.—(1) From the total sum payable to a person to whom this Part applies there shall be deducted an amount equivalent to any redundancy payment made to that person.

(2) Subject to paragraph (4), for the purpose of calculating the compensation payable to a person under this Part, the relevant body shall not include in the calculation any years of relevant local government service or qualifying employment which they or a previous relevant body has taken into account for the purposes of calculating compensation which has been paid previously to the person under this Part or the 1989 Regulations.

(3) Subject to paragraph (4), no period of relevant local government service or qualifying employment which has been taken into account in calculating compensation paid under this Part may be taken into account for the purposes of calculating compensation to be paid under these Regulations or other regulations made under section 24 of the Superannuation Act 1972.

(4) A period of relevant local government service or qualifying employment of a person with a relevant body which is concurrent with relevant local government service or qualifying employment with that relevant body or another employing body may be included in the calculation of relevant local government service or, as the case may be, qualifying employment under this Part by that relevant body.

(5) In paragraph (4) above “employing body” means an employing authority within the meaning of the Local Government Superannuation Regulations 1986(1), an LGPS employer within the meaning of the Local Government Pension Scheme Regulations 1995(2) or a National Park Authority in Wales.

Notification of compensation

12.  A relevant body, after making a determination in accordance with regulation 6, shall as soon as reasonably practicable give the person in respect of whom that determination is made written notification of the compensation payable, and the calculation thereof.

Payment of compensation

13.  Any compensation payable under this Part shall be paid by the relevant body as soon as practicable after making a determination in accordance with regulation 6 in the form of a lump sum payment to the person entitled to receive the compensation and shall not be assignable or chargeable with his debts or other liabilities.

(1)

S.I. 1986/24; relevant amending instruments are S.I. 1986/380, 1987/293, 1988/466, 1989/372, 1462 1990/503, 1991/2471, 1992/172, 1993/1367, 1814, 3030 and 3043.

(2)

S.I. 1995/1019.