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.