3(1)The Secretary of State shall by regulations require the Agency to pay, in such circumstances and to such extent as may be determined by or under the regulations, compensation to or in respect of any person to whom this Schedule applies for loss of employment or for loss or diminution of emoluments or pension rights in consequence of the events specified in sub-paragraph (2) below.
(2)The said events are—
(a)for the purpose of compensation to a person for loss of employment—
(i)dismissal of that person from his employment with the Agency in a case where he has transferred to that employment from his employment with the Council; or
(ii)dismissal of that person from his employment with the Council in a case where he has remained in the employment of the Council;
(b)for the purpose of compensation to a person for loss or diminution of emoluments or pension rights, the variation of the terms or conditions of his employment—
(i)with the Agency in a case where he has transferred to that employment from his employment with the Council and has been served with a notice under paragraph 2 above specifying new terms and conditions of his employment which are, taken as a whole, less favourable than those on which he was employed before service of the notice ; or
(ii)with the Council in a case where he has remained in the employment of the Council.
4Different regulations may be made under paragraph 3 above in relation to different classes of persons, and any such regulations may be so framed as to have effect as from a date prior to the making thereof, so, however, that so much of any regulations as provides that any provision therein is to have effect as from a date earlier than the making thereof shall not place any person other than the Agency in a worse position than he would have been in if the regulations had been made to have effect only as from the date of the making thereof.
5Regulations under paragraph 3 above—
(a)may prescribe the procedure to be followed in making claims for compensation, and the manner in which and the person by whom the question whether any or what compensation is payable is to be determined, and
(b)may apply, with or without modifications, the provisions of any other rules or regulations relating to similar matters.