The Iron and Steel (Compensation to Employees) Regulations 1968

PART IV LONG-TERM COMPENSATION FOR LOSS OF EMPLOYMENT OR LOSS OR DIMINUTION OF EMOLUMENTS

Persons to whom long-term compensation is payable

10.—(1) The Corporation shall, subject to the provisions of these regulations, pay long-term compensation to any person to whom these regulations apply, who—

(a) has suffered loss of employment or loss or diminution of emoluments in consequence of a relevant event not later than 10 years after the material date;

(b) had not, save as is provided in regulation 15, at the date of the loss or commencement of the diminution reached normal retiring age;

(c) had been continuously engaged (without a break of more than 12 months at any one time) in relevant employment during the period beginning 8 years before the material date and ending at the date of the loss; and for this purpose the expression “relevant employment” includes any period of national service immediately following such employment;

(d) has made a claim for compensation in accordance with the provisions of Part VII of these regulations not later than 2 years after the date on which the loss of employment or emoluments took place or the commencement of the diminution of emoluments began in respect of which the claim is made or 2 years after the coming into operation of these reggulations, whichever is the later.

(2) Long-term compensation shall not, however, be paid:—

(a) to a person who has suffered loss of employment in consequence of a relevant event, if his employment could have been terminated by reason of misconduct or incapacity to perform such duties as, immediately before that loss of employment, he was performing or might reasonably have been required to perform; or

(b) to a person who has been offered reasonably comparable employment under the Crown or in the service of the Corporation or of a publicly-owned company.

(3)  Regulation 5(3) and (4) (which relate to offers of employment) shall apply for the purposes of this regulation as they apply for the purposes of regulation 5.

(4) Claims for long-term compensation for loss of employment shall in all respects be treated as claims for such compensation for the loss of emoluments occasioned thereby and the provisions of these regulations shall apply to all such claims accordingly.

Factors to be considered in assessing loss or diminution of emoluments

11.—(1) For the purpose of determining the amount of long-term compensation, if any, the loss or diminution of emoluments suffered by a person shall be regarded as the annual loss or diminution (if any) of net annual emoluments which he would have suffered had he taken all reasonable steps open to him to mitigate that loss or diminution, and in assessing the loss or diminution such of the following factors as are relevant to the particular case shall be taken into consideration:—

(a) the conditions upon which the person held the employment which he has lost or the emoluments of which have been lost or diminished, including in particular its security of tenure, whether by law or practice;

(b) the emoluments and other conditions, including security of tenure, whether by law or practice, of any work or employment undertaken by the person in place of the employment which he has lost;

(c) the period for which he might reasonably have been expected to have remained in the employment which he has lost, or to have remained in that employment without diminution of emoluments, as the case may be, but for the relevant event in consequence of which he has suffered the loss or diminution;

(d) the period for which he might reasonably have been expected to engage or remain in the work or employment undertaken in place of the employment which he has lost or the emoluments of which have been lost or diminished;

(e) the extent to which he has sought suitable employment or training for such employment and the emoluments which he might have acquired by accepting other suitable employment offered to him;

(f) all the other circumstances of the case.

(2) In ascertaining for the purposes of sub-paragraph (e) of paragraph (1) whether a person has been offered suitable employment, regulation 5(4) shall apply as it applies for the purposes of regulation 5.

Amount of long-term compensation payable for loss of emoluments

12.—(1) Subject to the provisions of these regulations, long-term compensation for loss of emoluments shall consist of an annual sum payable until the normal retiring age or death of a person to whom it is payable, whichever first occurs, and shall be the amount of the annual loss of emoluments which he has suffered assessed in accordance with regulation 11, not, however, exceeding the maximum annual sum provided for in the following provisions of this regulation.

(2) The said maximum annual sum shall, subject as hereinafter provided, be the aggregate of the following sums:—

(a) for every year of the person's reckonable service, one sixtieth of the annual loss of emoluments so assessed; and

(b) in the case of a person who has reached the age of 40 years at the date of the loss, a sum calculated in accordance with the provisions of paragraph (3) appropriate to his age at that date:

Provided that the said maximum annual sum shall in no case exceed two thirds of the annual loss of emoluments so assessed.

(3) The sum referred to in paragraph (2)(b) shall be:—

(a) in the case of a person who has reached the age of 40 years but has not reached the age of 50 years at the date of the loss, the following fraction of the annual loss of emoluments so assessed—

(i) where his reckonable service is less than 10 years, one sixtieth for each year of such service after reaching the age of 40 years; or

(ii) where his reckonable service amounts to 10 years but is less than 15 years, one sixtieth for each year of such service after reaching the age of 40 years and one additional sixtieth; or

(iii) where his reckonable service amounts to 15 years but is less than 20 years, one sixtieth for each year of such service after reaching the age of 40 years and two additional sixtieths; or

(iv) where his reckonable service amounts to 20 years or more, one sixtieth for each year of such service after reaching the age of 40 years and three additional sixtieths,

but the sum so calculated shall not in any case exceed one sixth of the annual loss of emoluments so assessed;

(b) in the case of a person who has reached the age of 50 years but has not reached the age of 60 years at the date of the loss, one sixtieth of the annual loss of emoluments so assessed for each year of his reckonable service after reaching the age of 40 years, up to a maximum of 15 such years; and

(c) in the case of a person who has reached the age of 60 years at the date of the loss, one sixtieth of the annual loss of emoluments so assessed for each year of his reckonable service after reaching the age of 45 years.

(4) Long-term compensation determined under this regulation shall be payable to a person by instalments at intervals equivalent to those at which the emoluments of his employment were previously paid or at such intervals as may be agreed between the person and the Corporation.

(5) Long-term compensation payable in respect of a period for which resettlement compensation is also payable shall be reduced by the amount of that resettlement compensation.

Long-term compensation for diminution of emoluments

13.—(1) Long-term compensation payable for diminution of emoluments shall, subject to the provisions of these regulations, consist of an annual sum payable until the normal retiring age or death of a person to whom it is payable, whichever first occurs, and shall be the amount of the annual diminution which he has suffered assessed in accordance with regulation 11, not however exceeding the annual sum which bears to the maximum annual sum which could have been awarded to him under regulation 12 if he had suffered loss of emoluments the same ratio as the amount by which his net annual emoluments have been diminished bears to his net annual emoluments before diminution, so however that no compensation shall be payable under this regulation if the ratio is less than 2½%.

(2) Long-term compensation determined under this regulation shall be payable to a person by instalments at intervals equivalent to those at which the emoluments of his employment are or were previously paid or at such intervals as may be agreed between the person and the Corporation.

Date from which long-term compensation is to be payable

14.—(1) Long-term compensation shall be payable with effect from the date on which the claim is received unless made payable from an earlier date under the succeeding provisions of this regulation.

(2) Where a claim for long-term compensation is made within 13 weeks of the occurrence of the loss or the commencement of the diminution which is the subject of the claim, or of the coming into operation of these regulations whichever is the later, the compensation shall be payable with effect from the date on which the loss occurred or the diminution commenced.

(3) Where a claim for long-term compensation is made after the expiry of the period mentioned in paragraph (2), the compensation may, at the discretion of the Corporation, be made payable with effect from a date not earlier than 13 weeks prior to the date on which the claim was received:

Provided that if the Corporation are satisfied that the failure to make the claim within the period mentioned in paragraph (2) was due to ill-health or other circumstances beyond the claimant's control, the compensation may be made payable with effect from a date not earlier than that on which the loss occurred or the diminution commenced.

Compensation payable to non-pensionable officers on reaching retiring age

15.—(1) Where a person to whom these regulations apply and who is not a pensionable officer is receiving long-term compensation for loss of employment and reaches normal retiring age, the Corporation shall, if satisfied that the person would, but for the loss, have continued in the employment he has lost for a substantial period beyond that age, continue to pay compensation to him for the remainder of his life at half its former rate.

(2) Where a person to whom these regulations apply and who is not a pensionable officer suffers loss of employment in consequence of a relevant event on or after reaching normal retiring age, the Corporation shall, if satisfied that the person would in the normal course have continued in the employment he has lost for a further substantial period, pay compensation to him for the remainder of his life at half the rate which would have been payable under regulation 12 had he not attained normal retiring age on or before the date on which he lost his employment.