The Local Government (Compensation for Redundancy) Regulations 1994

Explanatory Note

(This note is not part of these Regulations)

The purpose of these Regulations is to allow a lump sum payment to be made to certain employees who cease to hold local government employment by reason of redundancy or in the interests of the efficiency of their employer. The Regulations are divided into five Parts. Part I sets out various definitions.

Part II covers the case of employees who leave employment after these Regulations came into force, but not during the period covered by Part III, and provides that the maximum payment will be on a sliding scale according to age and complete years of service subject to an overall limit equivalent to 66 weeks' remuneration. Regulation 3 sets out to which employees Part II applies. The payment of compensation is at the discretion of the employing body.

Part III deals with loss of employment during a specified period linked to local government reorganisation in England and Wales. In the case of certain employees covered by regulation 8, the compensation is mandatory and is calculated on the same basis as for employees falling within Part II. For other employees over age 50 with specified periods of service, the compensation is discretionary and may be up to the maximum of the Part II payments.

All payments under Part II and Part III are reduced by the aggregate of the amount of any redundancy payment under the Employment Protection (Consolidation) Act 1978 (c. 44) and any compensation paid under the earnings waiver in the Local Government (Compensation for Redundancy and Premature Retirement) Regulations 1984 (S.I. 1984/740).

Part IV applies to employees ceasing employment during a specified period before the commencement of these Regulations in respect of whom the employing body may determine to pay compensation. The maximum payment is calculated by a fixed formula. This Part of the Regulations is, by virtue of section 24(3)(c) of the Superannuation Act 1972, made retrospective to 1st April 1980.

Part V deals with notification and payment of compensation and makes a consequential amendment to the Local Government (Compensation for Premature Retirement) Regulations 1982 (S.I. 1982/1009).