PART IXSUPPLEMENTAL
Validity and revision of contracts68
1
A term of a contract is void where—
a
its inclusion renders the making of the contract unlawful by virtue of this Order; or
b
it is included in furtherance of an act rendered unlawful by this Order; or
c
it provides for the doing of an act which would be rendered unlawful by this Order.
2
Paragraph (1) does not apply to a term the inclusion of which constitutes, or is in furtherance of, or provides for, unlawful discrimination against a party to the contract, but the term shall be unenforceable against that party.
3
On the application of any person interested in a contract to which paragraph (2) applies, a county court may make such order as it thinks just for removing or modifying any term made unenforceable by that paragraph; but such an order shall not be made unless all persons affected have been given notice of the application (except where under county court rules notice may be dispensed with) and have been afforded an opportunity to make representations to the court.
4
An order under paragraph (3) may include provision as respects any period before the making of the order.
5
A term in a contract which purports to exclude or limit any provision of this Order is unenforceable by any person in whose favour the term would operate apart from this paragraph.
6
Paragraph (5) does not apply—
a
to a contract settling a complaint to which Article 52(1) applies where the contract is made with the assistance of the Labour Relations Agency; or
b
to a contract settling a complaint to which Article 52(1) applies if the conditions regulating compromise contracts under this Order are satisfied in relation to the contract; or
c
to a contract settling a claim to which Article 54 applies.
7
The conditions regulating compromise contracts under this Order are that—
a
the contract must be in writing;
b
the contract must relate to the particular complaint;
c
the complainant must have received independent legal advice from a qualified lawyer as to the terms and effect of the proposed contract and in particular its effect on his ability to pursue his complaint before an industrial tribunal;
d
there must be in force, when the adviser gives the advice, a policy of insurance covering the risk of a claim by the complainant in respect of loss arising in consequence of the advice;
e
the contract must identify the adviser; and
f
the contract must state that the conditions regulating compromise contracts under this Order are satisfied.
8
In paragraph (7)—
“independent”, in relation to legal advice to the complainant, means that it is given by a lawyer who is not acting for the other party or for a person who is connected with that other paw and
“qualified lawyer” means a barrister (whether in practice as such or employed to give legal advice) or a solicitor who holds a practising certificate.
9
For the purposes of paragraph (7) any two persons are to be treated as “connected” if one is a company of which the other (directly or indirectly) has control, or if both are companies of which a third person (directly or indirectly) has control.