Local Government Act 1985

59 Redundancy and compensation payments. E+W

(1) Any person who immediately before the abolition date is in the service of the Greater London Council or a metropolitan county council under a contract of employment which would have continued but for the abolition of that council and who is not designated for the purposes of section 52 above shall be entitled to receive from the appropriate residuary body any redundancy payment under Part VI of the M1 Employment Protection (Consolidation) Act 1978 which he would have been entitled to receive from that council if it had not been abolished but had dismissed him by reason of redundancy immediately before the abolition date.

(2) As respects any such redundancy payment as is mentioned in subsection (1) above the appropriate residuary body shall be treated as the employer of the person concerned for the purposes of sections 101, 102, 104, 108 and 119 of the said Act of 1978 (ancillary provisions about redundancy payments) and references to the relevant date in sections 81(4), 82(1) and 101 of that Act and in Schedule 4 to that Act shall be construed as references to the day before the abolition date.

(3) With a view to reducing the cases in which redundancy payments will fall to be made to such persons as are mentioned in subsection (1) above the Secretary of State may make a scheme for the making of payments by the residuary bodies to employers offering such persons employment which, by virtue of sections 84, 94 and 95 of the said Act 1978, will preclude their becoming entitled to redundancy payments.

(4) Any person who immediately before the abolition date is in the service of the Greater London Council or a metropolitan county council under a contract of employment made before 2nd March 1984 and who is not designated for the purposes of section 52 above shall be entitled to receive from the appropriate residuary body—

(a) if the contract provided for his employment for a fixed term extending beyond that date without any provision for its prior termination by that council, an amount equal to any damages which he would have been entitled to recover from that council if it had not been abolished but had dismissed him immediately before that date; or

(b) if the contract (whether or not for a fixed term) provided for its termination by that council on payment of compensation for loss of employment, an amount equal to the compensation which he would have been entitled to receive from that council if it had not been abolished but had terminated the contract immediately before that date.

(5) In paragraph (b) of subsection (4) above “compensation for loss of employment” does not include any payment to be made under the contract in lieu of notice; and where the amount of compensation payable under a contract differs according to the reasons for its termination the amount payable under that paragraph shall be determined on the assumption that the contract was terminated by reason of redundancy within the meaning of the said Act of 1978.

Modifications etc. (not altering text)

C1 S. 59 modified by S.I. 1985/1846, reg. 5(6)

C2 S. 59 modified by S.I. 1986/399, art. 7

Marginal Citations

M1 1978 c. 44.