The Local Government Reorganisation (Compensation for Loss of Remuneration) Regulations 1995

Amount of Compensation in respect of loss or diminution of remuneration

5.—(1) A relevant employer shall pay an eligible person an amount by way of compensation equal to three times the difference—

(a) in a case to which regulation 3(2) applies, between the annual rate of remuneration at the termination of his former employment and the commencing annual rate of remuneration of his new employment; or

(b) in a case to which regulation 3(3) applies, between the annual rate of remuneration before and after the reduction in question; or

(c) in a case to which regulation 3(4) applies, between the annual rate of remuneration before and after the further reduction in question.

(2) The amount of any compensation payable in accordance with paragraph (1) above shall be recalcuated on each occasion during the relevant compensation period when the annual rate of remuneration for the relevant employment is increased and shall cease to be payable at any time during which the annual rate of remuneration for the new employment equals or exceeds that for the former employment or, as the case may be, the rate before the reduction or further reduction in question.

(3) The relevant employer shall calculate the amount of any compensation payable in accordance with paragraph (1) and any change in the compensation payable in accordance with paragraph (2).

(4) Any change in the amount of any compensation payable in accordance with paragraph (2) above shall not affect the entitlement to any instalment payable before that date.