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4Regulation 7 of the Employment Transfer Regulations shall not apply—
(a)in relation to the contract of employment of any person employed in the undertaking; or
(b)in relation to any collective agreement in its application in relation to any person so employed.
5(1)Without prejudice to the operation of those regulations by virtue of paragraph 4 above and to any effect that sections 14 and 15 of this Act may have apart from this paragraph, any rights and liabilities of the person appointed under any agreement or arrangement for the payment of pensions, allowances or gratuities to or in respect of persons who are or have been employed by him are on the termination of his appointment transferred to, and vest in, the Secretary of State by virtue of this paragraph.
(2)Accordingly—
(a)references to the person appointed in any such agreement or arrangement, and in any other agreement, deed, bond, instrument or other document whatsoever relating to or affecting any such rights or liabilities, shall be taken after termination as referring to the Secretary of State ; and
(b)for the purposes of any such agreement or arrangement as it has effect after termination any period of employment with any person which immediately before termination falls to be taken into account for any purposes of that agreement or arrangement shall count as a period of employment with the Secretary of State.
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