Explanatory note

These regulations, made under section 41 of the Iron and Steel Act 1949 as revived and amended by the Iron and Steel Act 1967, provide for the determination and payment by the British Steel Corporation of compensation to persons who suffer loss of employment or loss or diminution of emoluments or pension rights in consequence of (a) companies coming into public ownership under the Acts; (b) subsequent organisational changes giving effect to conclusions in a formal report by the Corporation to the Minister of Power or a direction by the Minister to the Corporation; (c) or the dissolution of the Iron and Steel Board.

Part I of the regulations contains definitions. Part II applies the regulations to any person who was employed immediately before 22nd March 1967 as an officer of a company which came into public ownership under the Acts or of the Iron and Steel Board.

The compensation payable is:—

Resettlement compensation is payable for a period not exceeding 26 weeks to persons who have served continuously (disregarding breaks not exceeding in the aggregate 6 months) with a publicly-owned company or the Iron and Steel Board or in other relevant employment during the period begining on a date three years before the date of the event which gave rise to the loss and ending with the date of the loss; and who have fulfilled the other qualifying conditions set out in regulation 5. It consists of a weekly payment of two thirds of the net emoluments lost reduced by certain National Insurance benefits, by two thirds of the net emoluments from alternative employment, by payments under the Redundancy Payments Act, 1965 and by certain other payments (Regulations 6 and 29.

Long-term compensation is payable to persons who have served continuously (without a break of more than 12 months at any one time) with a publicly-owned company, the Iron and Steel Board or in other relevant employment during the period beginning on a date eight years before the date of the event which gave rise to the loss and ending with the date of the loss; and who have fulfilled the other qualifying conditions set out in regulation 10. It consists, of the annual loss or diminution of net emoluments which the person would have suffered had he taken all reasonable steps to mitigate it and taking into consideration the factors set out in regulation 11. The maximum is a proportion not exceeding two thirds of the loss or diminution as the case may be. (Regulation 12). Long-term compensation is reduced by payments under the Redundancy Payments Act, 1965 and by the other payments specified in Regulation 29.

Long-term compensation is payable from a date determined under regulation 14 until death or normal retiring age, whichever is the earlier. In the case of non-pensionable officers who would have continued working beyond normal retiring age, long-term compensation is payable from that age for the remainder of their lives at one half of the assessed rate (regulation 15).

Retirement compensation is payable to a pensionable officer who has fulfilled the conditions set out in regulation 16.It is based on the loss of pension rights which he would have suffered if the conditions specified in regulations 18, 19 or 20 had obtained and if he had taken all reasonable steps to mitigate (regulation 17). Retirement compensation is ordinarily payable from normal retiring age (regulation 16) but it may be payable earlier in the circumstances specified in regulations 19 and 20.

Part VI provides for the adjustment and compounding of compensation in certain circumstances. Part VII contains procedural provisions. Regulation 34 gives a claimant who is aggrieved by a determination of the Corporation on compensation a right of appeal to a tribunal established under section 12 of the Industrial Training Act 1964 Regulation 35 provides for the review and variation of long-term and retirement compensation in the light of changing circumstances.

Part VIII contains miscellaneous provisions.

These regulations come into operation on 2nd August 1968.