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4.—(1) Where a pensionable employee or an assumed pensionable employee–
(a)has ceased to hold his employment with an employing authority on or after 1st August 1984; and
(b)is entitled to a redundancy payment under 1978 Act or the 1996 Act,
the authority may pay him compensation under this regulation.
(2) The compensation payable under this regulation shall not exceed the difference between–
(a)the redundancy payment to which he is entitled under Part VI of the 1978 Act or, as the case may be, Part XI of the 1996 Act; and
(b)the redundancy payment to which he would have been so entitled if paragraph 8(1)(c) of Schedule 14 to the 1978 Act or, as the case may be, section 227 of the 1996 Act (weekly pay in excess of specified limit to be disregarded in calculating redundancy payment) were omitted.
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