(1)Where the emoluments of all the employees to whom a profit-related pay scheme relates are paid by the same person, an application to register the scheme under this Chapter may be made to the Board by that person.
(2)Where subsection (1) above does not apply to a profit-related pay scheme, no application to register it may be made unless all the persons who pay emoluments to employees to whom the scheme relates are bodies corporate which are members of the same group; and in that case an application may be made by the parent company of the group.
(3)In subsection (2) above—
“group” means a body corporate and its 51 per cent. subsidiaries, and
“parent company” means that body corporate; and
in applying for the purposes of this section the definition of “51 per cent. subsidiary” in section 838, any share capital of a registered industrial and provident society (within the meaning of section 486) shall be treated as ordinary share capital.
(1)No application may be made to register a scheme under this Chapter if any employment to which the scheme relates is—
(a)employment in an office under the Crown or otherwise in the service of the Crown; or
(b)employment by an excluded employer.
(2)For the purposes of this section “excluded employer” means—
(a)a person in an employment within subsection (1) above;
(b)a body under the control of the Crown, or of one or more persons acting on behalf of the Crown;
(c)a local authority;
(d)a body under the control of one or more local authorities, or of the Crown (or one or more persons acting on behalf of the Crown) and one or more local authorities.
(3)For the purposes of this section a person has control of a body only if one or more of the following conditions is satisfied—
(a)in the case of a body whose affairs are managed by its members, he has the power to appoint more than half of the members;
(b)in the case of a body having a share capital, he holds more than half of its issued share capital;
(c)in the case of a body whose members vote in general meeting, he has the power to exercise more than half of the votes exercisable in general meeting;
(d)the articles of association or other rules regulating the body give him the power to secure that the affairs of the body are conducted in accordance with his wishes.
(4)For the purposes of this section a person shall be taken to possess rights and powers possessed by—
(a)a person appointed by him to an office by virtue of which the rights or powers are exercisable; or
(b)a body which he controls;
including rights and powers which such an officer or body is taken to possess by virtue of this subsection.
(5)Subsections (3) and (4) above apply with the necessary modifications for the purpose of determining whether persons together have control of a body.
(1)An application for the registration of a profit-related pay scheme under this Chapter—
(a)shall be in such form as the Board may prescribe;
(b)shall contain a declaration by the applicant that the scheme complies with the requirements of Schedule 8;
(c)shall contain an undertaking by the applicant that the emoluments paid to any employee to whom the scheme relates and to whom minimum wage legislation applies will satisfy that legislation without taking account of profit-related pay;
(d)shall specify the profit period or periods to which the scheme relates;
(e)shall be supported by such information as the Board may require.
(2)An application for the registration of a profit-related pay scheme under this Chapter shall be accompanied by a report by an independent accountant, in a form prescribed by the Board, to the effect that in his opinion—
(a)the scheme complies with the requirements of Schedule 8;
(b)the books and records maintained and proposed to be maintained by the applicant are adequate for the purpose of enabling the documents required by section 180(1) to be produced.
(3)An application for the registration of a profit-related pay scheme under this Chapter shall be made within the period of six months ending immediately before the beginning of the profit period, or the first of the profit periods, to which the scheme relates.
(4)In subsection (1) above “minimum wage legislation” means the provisions relating to remuneration in Part II of the [1986 c. 48.] Wages Act 1986, the [S.I. 1982/1840 (N.I. 23).] Wages Councils (Northern Ireland) Order 1982, the [1948 c. 47.] Agricultural Wages Act 1948, the [1949 c. 30.] Agricultural Wages (Scotland) Act 1949 and the [S.I. 1977/2151 (N.I. 22).] Agricultural Wages (Regulation) (Northern Ireland) Order 1977.
(1)If an application for registration of a profit-related pay scheme under this Chapter is made more than three months (but not more than six months) before the beginning of the profit period, or the first of the profit periods, to which the scheme relates, then subject to subsection (2) below, the Board shall register the scheme before the beginning of that period.
(2)If the Board are not satisfied that an application made as mentioned in subsection (1) above complies with the requirements of this Chapter, they may within 30 days after the day on which they receive the application—
(a)refuse the application; or
(b)by notice to the applicant either require him to amend the application or require him to give them such further information as may be specified in the notice, and in either case to do so within such time, not exceeding 30 days after the day on which the notice is given, as may be so specified.
(3)If a notice under subsection (2) above is complied with and the Board are satisfied that the application complies with the requirements of this Chapter, the Board shall register the scheme before the beginning of the profit period.
(4)If a notice under subsection (2) above is complied with but the Board remain not satisfied that the application complies with the requirements of this Chapter, the Board shall refuse the application.
(5)If a notice under subsection (2) above is not complied with but the Board are before the beginning of the profit period satisfied that the application complies with the requirements of this Chapter, the Board may register the scheme before the beginning of the period; but if they do not do so, the application shall be regarded as having been refused.
(6)If an application for registration of a profit-related pay scheme under this Chapter is made within the period of three months before the beginning of the profit period, or the first of the profit periods, to which the scheme relates, then—
(a)if before the beginning of the profit period the Board are satisfied that the application complies with the requirements of this Chapter, they shall register the scheme before the beginning of the period; but
(b)in any other case, the application shall be regarded as having been refused.
(7)After registering a scheme under this Chapter, the Board shall by notice inform the applicant that they have done so.
(8)The Board shall give notice to the applicant if they refuse his application under subsection (2) or (4) above.
(9)For the purposes of this section an application does not comply with the requirements of this Chapter if the scheme to which it relates does not comply with the requirements of Schedule 8.
(1)Where—
(a)a scheme employer ceases to fulfil the conditions which section 173 requires to be fulfilled by an applicant for registration of the scheme; and
(b)he is succeeded by a person who would be eligible to apply for registration to the scheme; and
(c)there is otherwise no other material change in the employment unit or in the circumstances relating to the scheme;
the scheme employer and his successor may make a joint written application to the Board under this section for the amendment of the registration of the scheme.
(2)If on receiving an application under this section the Board are satisfied—
(a)that the conditions in subsection (1)(a), (b) and (c) above are fulfilled; and
(b)that, apart from the change of scheme employer, there would be no grounds for cancelling the registration of the scheme,
the Board shall amend the registration of the scheme by substituting the successor for the previous scheme employer.
(3)An application under this section shall be made before the end of the period of one month beginning with the date of the succession.
(4)Where the Board amend the registration of a scheme under this section, this Chapter shall (subject to any necessary modifications) have effect as if the successor had been the scheme employer throughout.
(5)The Board shall give notice to the applicants if they refuse an application under this section.
(1)If after a scheme has been registered under this Chapter it appears to the Board—
(a)that the scheme has not been or will not be administered in accordance with this Chapter in relation to a profit period; or
(b)that the circumstances relating to the scheme have during a profit period become such that (if it were not registered) an application to register it under this Chapter would be excluded by section 174; or
(c)in the case of a scheme which employs (as the method of determining the distributable pool for a profit period) the method described as method B in paragraph 14 of Schedule 8, that losses were incurred in a profit period or in the preceding period of 12 months; or
(d)that the undertaking given in compliance with section 175(1)(c) has not been complied with in relation to employment at any time during a profit period;
the Board may cancel the registration and, subject to subsection (5) below, the cancellation shall have effect from the beginning of that profit period.
(2)If after a scheme has been registered under this Chapter it appears to the Board—
(a)that at the time of registration the scheme did not comply with the requirements of Schedule 8 or that the application did not comply with the requirements of this Chapter; or
(b)in the case of a scheme which employs (as the method of determining the distributable pool for a profit period) the method described as method A in paragraph 13 of Schedule 8, that losses were incurred in the base year specified in the scheme;
the Board may cancel the registration with effect from the beginning of the profit period (or first profit period) to which the scheme related.
(3)If after a scheme has been registered under this Chapter the scheme employer fails to comply with the requirements of section 180 in relation to a profit period, the Board may cancel the registration with effect from the beginning of that profit period.
(4)If the scheme employer by notice requests the Board to cancel the registration of the scheme with effect from the beginning of a profit period specified in the notice, the Board shall comply with the request.
(5)Where—
(a)the scheme employer has given to the Board in accordance with section 181(3) notice of a change in the employment unit, or in the circumstances relating to the scheme, which is a ground for cancellation of the registration of the scheme by virtue of subsection (1)(a) or (b) above, and
(b)the Board are satisfied that the change is not brought about with a view to the registration of a new scheme, and
(c)in the notice the scheme employer requests the Board to cancel the registration of the scheme with effect from the date of the change,
then, if the notice is given before the end of the period of one month beginning with that day, the Board shall comply with the request.
(6)The Board shall give notice to the scheme employer of the cancellation of a scheme’s registration.