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7. For the words from “Paragraph (2)” to “the employee’s employment with the transferor” in regulation 17 there is substituted—
“Paragraph (2) applies where—
(a)by virtue of article 7(a), 7(aa) or 7(b) of the Employers' Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972(1) (“the 1972 Order”), the transferor is not required by that Order to effect any insurance; or
(b)by virtue of article 7(c) of the 1972 Order, the transferor is exempted from the requirement of that Order to effect insurance.
(2) Where this paragraph applies, on completion of a relevant transfer the transferor and the transferee shall be jointly and severally liable in respect of any liability referred to in article 5(1) of the 1972 Order, in so far as such liability relates to the employee’s employment with the transferor”.
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