4.—(1) Section 165 of the Pension Schemes Act 1993(1) (application of certain provisions to cases with foreign element) is amended as follows.
(2) For subsection (7) substitute—
“(7) Chapter II of Part VII and section 157 do not apply to employment where under his worker’s contract the worker ordinarily works outside the territory of the member States, but section 201 of the Employment Rights Act 1996 (power to extend employment protection legislation) applies to Chapter II of Part VII and section 157 as it does to the provisions of that Act.”.
(3) In subsection (8) omit the definition of “employment as a merchant seaman” and the “and” preceding it.
(4) The amendments made by paragraphs (2) and (3) only have effect in relation to employers who become insolvent(2) on or after the date on which these Regulations come into force.
See section 123 of the Pension Schemes Act 1993 for the meaning of “employers who become insolvent”.