Regulation 8 Amount of compensation in respect of loss or diminution of emoluments

(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 ((A+B)}6C)}6D, where–

is the annual rate of his emoluments in his former employment,

is any amount by which A would, by the end of a compensation period, have been increased if it had been the annual rate of an official pension within the meaning of the Pensions (Increase) Act 1971^f1 beginning, and first qualifying for increases under that Act, on the day after the relevant date or, where the relevant date is 31st March 1990 or an earlier date, 25th November 1989,

is the amount of his emoluments in his new employment, or in any subsequent employment by virtue of which compensation continues to be payable as provided in regulation 9(2), during a compensation period, and

is any part of the excess of (A+B) over C in respect of which compensation was payable during that period under regulations made under section 259 of the Local Government Act 1972^f2 or under any instrument made under any enactment, whenever enacted, to the like effect.

(2)

For the purposes of this regulation and of regulations 11 and 12, 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 in a qualifying employment, 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

\frac{E}{F}

, and

(b)

the annual sum is to be multiplied by

\frac{E}{F}

, 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.

Annotations

Footnotes

f1: 1971 c. 56.
f2: 1972 c. 70.