Transitional Arrangements4

1

Subject to the provisions of the Scheme, regulation 3 shall not prevent the making of payments under the Scheme to any steel employee who—

a

at the effective date is a redundant employee or a transferred employee, and in respect of whom the Commission before that date has approved the provision of non-repayable aid under Article 56(2) of the ECSC Treaty5;

b

on or after the effective date is or becomes, as the case may be, a redundant employee or a transferred employee, where—

i

the relevant event to which that employee’s redundancy or transfer relates has occurred before the effective date; and

ii

in respect of whom the Commission on or after that date approves the provision of non-repayable aid under Article 56(2) of the ECSC Treaty; or

c

subject to paragraph (2) below, before or on 1st May 1994 has been made redundant or transferred by a steel company as a result of a permanent discontinuance or curtailment of, or change in, the activities of that steel company occasioned by fundamental changes, not directly connected with the establishment of the common market, in market conditions for the steel industry (“the qualifying conditions”) if, and only if—

i

the qualifying conditions occurred before the effective date;

ii

the Commission accepts that the qualifying conditions justify payments under Article 56(2) of the ECSC Treaty thus constituting a relevant event; and

iii

the Commission approves the provision of non-repayable aid under Article 56(2) of the ECSC Treaty in respect of that redundant or transferred employee.

2

For the purposes of paragraph (1)(c) above a steel employee shall be regarded—

a

as having been made redundant—

i

where his contract of employment is terminated by notice, on the date on which that notice expires;

ii

where his contract of employment is terminated without notice, on the date on which the termination takes effect;

iii

where he is employed under a contract for a fixed term and that term expires without being renewed under the same contract, on the date of such expiry; or

iv

in the case of sub-paragraph (a)(i) or (ii) above, on the date on which any period of statutory notice to which the steel employee is entitled under section 49(1) of the 1978 Act expires in so far as such date is later than the date as determined by reference to these sub-paragraphs; or

b

as having been transferred on the date when the steel employee takes up his duties in other employment with the same steel company or with an associated employer (within the meaning of section 153(4) of the 1978 Act).