Employment Act 1989

25 (1) Schedule 7 (calculation of payments to employees out of Redundancy Fund) shall be amended as follows.

(2) In paragraph 1(2), for “section 104(6)” substitute “section 106(1B)”.

(3) For paragraph 2 substitute—

“2 (1) Where the employer’s payment is not a redundancy payment or part of a redundancy payment, the sum referred to in section 106(2) is a sum equal to—

(a) the amount of the employer’s payment, or

(b) the amount of the relevant redundancy payment,

whichever is less.

(2) The reference in sub-paragraph (1)(b) to the amount of the relevant redundancy payment is a reference to the amount of the redundancy payment which the employer would have been liable to pay to the employee if—

(a) the order in force in respect of the agreement as mentioned in section 106(1A)(b) had not been made;

(b) the circumstances in which the employer’s payment is payable had been such that the employer was liable to pay a redundancy payment to the employee in those circumstances;

(c) the relevant date, in relation to any such redundancy payment, had been the date on which the termination of the employee’s contract of employment is treated for the purposes of the agreement as having taken effect; and

(d) in so far as the provisions of the agreement which relate to the following matters, that is to say—

(i) the circumstances in which the continuity of an employee’s period of employment is to be treated as broken, and

(ii) the weeks which are to count in computing a period of employment,

are inconsistent with the provisions of Schedule 13 as to those matters, those provisions of the agreement were substituted for those provisions of that Schedule.

(3) In sub-paragraph (2) “the agreement” means the agreement falling within section 106(1A)(b) by reference to which the employer’s payment is payable.”