6.—(1) Subject to paragraphs (2) and (3), a person's emoluments in an employment are all the salary, wages, fees and other payments made to him as an employee for his own use, and the money value of any accommodation or other allowances in kind appertaining to the employment.
(2) A person's emoluments do not include—
(a)unless it is a usual incident of the employment, any payment for overtime or bonus payment,
(b)any allowance payable to him to cover the cost of providing office accommodation or clerical or other assistance,
(c)any travelling or subsistence allowance or other moneys to be spent, or to cover expenses incurred, by him for the purposes of the employment,
(d)any payment for loss of holidays made to him on his ceasing to hold the employment, or
(e)any payment accepted by him in lieu of notice to terminate his contract of employment, or
(f)any compensation paid to him under these regulations or otherwise.
(3) Where a person has been absent from work his emoluments are to be treated as including any payments which would have been made to him but for his absence.
(4) Subject to paragraph (5), the annual rate of a person's emoluments in his former employment is the amount of his emoluments in that employment for the period of 12 months immediately preceding the relevant date, or if greater—
(a)in the case of emoluments payable monthly, the amount of his emoluments for the last complete month of that period multiplied by 12, or
(b)in the case of emoluments payable weekly or at intervals of 2 or 4 weeks, the amount of his emoluments for the last complete 8 weeks of that period multiplied by 365/56.
(5) Where a person's emoluments for the period of 12 months immediately preceding the relevant date included any fees or other variable payments, the annual rate of his emoluments in his former employment includes the annual average of those payments during—
(a)the period of 5 years immediately preceding the relevant date, or
(b)such other period as is reasonable in the circumstances.
7.—(1) A person suffers loss or diminution of emoluments if No math image to display
(2) A person who suffers loss or diminution of emoluments is entitled to compensation if—
(a)his former employment was terminated before he reached normal retiring age, and
(b)on the relevant date, or on 1st April 1986 if earlier, he had been employed for not less than 3 years in relevant local government service, and
(c)if his former employment was terminated before 13th November 1985, the contract under which he was employed in it was terminated by his former employer, and
(d)if his former employer is one of the metropolitan county councils or the Greater London Council, he had on the relevant date been employed from 16th July 1985 in relevant local government service consisting of service with one or more of those councils, and
(e)he is not entitled to any compensation under Part II.
8.—(1) Subject to paragraphs (3) to (6) and regulation 9, the compensation to which a person is entitled under regulation 7 is an annual sum equal to No math image to display
(2) For the purposes of this regulation and of regulations 11 and 13, the compensation periods are the 8 consecutive periods of 12 months of which the first begins on the first day of the new employment; but the running of a compensation period is suspended during any period during which the person is not employed by an employer referred to in the Appendix to Schedule 2 to the Redundancy Payments (Local Government) (Modification) Order 1983, or a relevant authority for the purposes of section 54 of the 1985 Act, and in that event the start of the following compensation period is postponed accordingly.
(3) Where the contractual weekly hours in the new employment or a subsequent employment fall short of those in the former employment by more than 2 hours, then, to the extent that C comprises the emoluments of that new or subsequent employment—
(a)C is to be multiplied by No math image to display
(b)the annual sum is to be multiplied by No math image to display
where E is the number of the contractual weekly hours in the former employment and F is the number of those in the new or subsequent employment.
(4) In respect of any compensation period the annual sum is not to exceed the total of £5,000 and any amount by which that sum would by the end of the period have been increased if it had been the annual rate of an official pension within the meaning of the Pensions (Increase) Act 1971 beginning, and first qualifying for increases under that Act, on 1st April 1986.
(5) In respect of the eighth compensation period there is payable one half of the annual sum.
(6) No compensation is payable in respect of any period after the earlier of—
(a)the end of the eighth compensation period, and
(b)the person's attaining normal retiring age.
9.—(1) If before compensation has by virtue of regulation 8(6) ceased to be payable the person ceases to be employed by his new employer, then—
(a)if he is, or would if he had been dismissed by reason of redundancy have been, precluded by virtue of section 84, 94 or 95 of the 1978 Act from receiving a redundancy payment, compensation continues to be payable in accordance with regulation 8, and
(b)in any other case, no compensation is payable in respect of any period after the cessation of employment.
(2) Sub-paragraph (a) of paragraph (1) applies to a woman who is precluded by virtue of section 82(1)(b) of the 1978 Act (attainment of the age of 60) from receiving a redundancy payment if she would otherwise have been precluded from doing so by virtue of a section mentioned in that sub-paragraph.