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(1)If at any time after such date as may be specified for the purposes of this section by an order made by the Secretary of State (“the specified date") an inner London council proposes to engage a person who is currently in the employment of ILEA it shall, if reasonably practicable, enter into, or offer to enter into, a contract of employment with him that meets the requirements of subsection (2) below.
(2)The contract must be such that the employment of the person concerned by the council will or would take effect either immediately on the ending of his employment by ILEA or after an interval of not more than four weeks after the ending of that employment.
(3)If an inner London council enters into a contract of employment with a person who has received or is entitled to receive a redundancy payment under Part VI of the Employment Protection (Consolidation) Act 1978—
(a)by reason of his dismissal by ILEA at any time after the specified date; or
(b)by virtue of section 178(1) of this Act;
the council shall, if the Secretary of State so directs, pay to the London Residuary Body an amount equal to that payment.
(4)The Secretary of State shall not give a direction under subsection (3) above in respect of the employment of any person by an inner London council if the council satisfies him—
(a)that it could not reasonably have made that person an offer of employment on the terms and conditions of the contract mentioned in that subsection which, if accepted by him, would have precluded his entitlement to the redundancy payment; or
(b)that the council has made such an offer but that the person concerned acted reasonably in refusing it or that he could reasonably have refused such an offer if it had been made by the council.
(5)In any case in which an amount is payable by a council under subsection (3) above the council shall also pay to the London Residuary Body an amount equal to any compensation under the regulations referred to in section 173(2) of this Act which has been paid or is payable to the person concerned before the time when he enters into the contract.
(6)A former member of an inner London council shall not be disqualified by virtue of section 116 of the M1Local Government Act 1972 for being appointed by that council to a paid office if—
(a)he is, or at any time between the passing of this Act and the abolition date has been, in the employment of ILEA; and
(b)he is appointed not later than twelve months after that date and with the consent of the Secretary of State.
(7)For the purposes of subsection (2) above employment ending on a Friday or a Saturday shall be treated as ending immediately before the following Monday and the interval of four weeks shall be calculated as if any such employment had ended at that time.
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