Local Government Act 1985

53 Compensation for loss of office or diminution of emoluments

(1) This section applies to any person who at any time after the passing of this Act is in the service of—

(a) the Greater London Council or the council of a metropolitan county, metropolitan district or London borough or the Common Council; or

(b) a new authority or a residuary body,

and suffers loss of employment or loss or diminution of emoluments which is attributable to any provision made by or under this Act.

(2) Compensation in respect of any such loss or diminution suffered by a person to whom this section applies shall, subject to subsection (3) below, be paid only in accordance with regulations made for the purposes of this section under section 24 of the [1972 c. 11.] Superannuation Act 1972; and accordingly none of the councils, authorities or bodies mentioned in subsection (1) above shall pay any such compensation under any other statutory provision, by virtue of any provision in a contract or otherwise.

(3) Subsection (2) above shall not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by him before 2nd March 1984.

(4) Regulations under the said section 24 shall not provide compensation for a person to whom this section applies in respect of any such loss or diminution as is mentioned in subsection (1) above so far as attributable to the termination on or before the abolition date of a contract made after 1st March 1984 which provides for tile employment of that person for a fixed term extending beyond the abolition date.

(5) For the purpose of determining under section 82(5) or (6) or 84(3) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978—

(a) whether the provisions of a new contract offered to a person employed by any such council, authority or body as is mentioned in subsection (1) above differ from the corresponding provisions of his previous contract ; and

(b) whether employment under the new contract is suitable in relation to that person,

there shall be treated as forming part of the remuneration payable under the new contract any compensation to which that person is or, if he accepted the offer, would be entitled in accordance with this section.

(6) Except as provided in subsection (5) above nothing in this section shall be construed as affecting any entitlement to a redundancy payment under Part VI of the said Act of 1978 or to any payment by virtue of any provision of the [1972 c. 11.] Superannuation Act 1972 other than the said section 24.