Local Government (Wales) Act 1994 (c. 19)

(The document as of February, 2008)

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(1) Where a council have submitted a decentralisation scheme to the Secretary of State under section 27 he shall, before the end of the period of six months beginning with the date on which the scheme was submitted to him--

(a) approve the scheme as submitted;

(b) approve the scheme subject to such modifications as he considers appropriate; or

(2) Where he proposes not to approve the scheme as submitted, the Secretary of State shall notify the council concerned, before the end of that six month period, of the modifications which he proposes to make to the scheme, or (as the case may be) that he proposes to reject the scheme.

(3) Before he approves a scheme subject to modifications, or rejects a scheme, the Secretary of State shall have regard to any representations which have been made to him by the council concerned.

(4) Where the Secretary of State approves a decentralisation scheme, it shall be the duty of the council concerned to implement and maintain the scheme.

(5) The Secretary of State's decision under subsection (1) shall be given in writing.

(6) Where the Secretary of State approves a decentralisation scheme, he may give a direction to the council concerned as to the date by which the scheme is to be implemented.

(7) Where the Secretary of State has rejected a decentralisation scheme, he may at any time before the end of the period of six months beginning with the date on which he rejected the scheme, direct the council concerned to prepare and submit to him a revised scheme under section 27.

(8) Nothing in section 27(7) shall be taken to prevent the giving of a direction under subsection (7).

(9) A direction under subsection (7) may require the revised scheme to be submitted to the Secretary of State before a specified date.

29 Area committees: safeguards

(1) Where an area committee has been established by a council in accordance with an approved decentralisation scheme--

(a) the council shall not, except with the agreement of the committee, abolish the committee or alter any arrangements in force with respect to the committee which were made in accordance with the scheme as originally approved or which have subsequently been agreed with the committee; and

(b) nothing in section 101(4) of the 1972 Act (power of local authority to exercise functions otherwise discharged by committee) shall be taken to authorise the council to exercise any functions which are to be discharged by the committee, except as provided for by the scheme.

(2) Every decentralisation scheme shall include provision, to be given effect to by the standing orders of the council concerned, for the majority required in order for any suspending resolution to be passed to be such majority greater than a simple majority as may be specified by the scheme.

(3) In subsection (2) "suspending resolution", in relation to a decentralisation scheme, means a resolution to suspend any of the arrangements in force with respect to an area committee established in accordance with the scheme.

30 Area committees: membership etc

(1) This section applies where an area committee has been established by a council in accordance with an approved decentralisation scheme.

(2) The provisions of the 1972 Act with respect to arrangements for the discharge of functions by committees of local authorities and sub-committees, and the appointment of such committees and sub-committees, shall be subject to this section and section 31.

(3) Every person who is a member of the council for an electoral division which falls within the area for which the committee is established shall be entitled to be appointed to the committee at his request.

(4) The committee may appoint additional persons, including members of the council who are not entitled to membership of the committee under subsection (3), as members of the committee.

(5) No other persons shall be eligible for appointment to the committee.

(6) In this section, in relation to an area committee, "co-opted member" means any member appointed by the committee under subsection (4).

(7) Where the Secretary of State has given a direction under section 297 of the [1993 c. 35.] Education Act 1993 (power to direct appointment of members of certain committees) which applies to the committee and can only be complied with by the appointment of one or more additional members to the committee, it shall be the duty of the committee to exercise its powers of appointment to secure compliance with the direction.

(8) A co-opted member of an area committee shall not be entitled to vote at any meeting of the committee on any question which falls to be decided at that meeting.

(9) Nothing in subsection (8) shall prevent the appointment of a person, in compliance with a direction under section 297 of the Act of 1993, as a voting member of an area committee.

(10) In the application of section 101 of the 1972 Act (arrangement for discharge of functions by local authorities) in relation to the committee--

(a) subsection (1) shall have effect as if it gave power to the committee, if authorised to do so by the decentralisation scheme, to arrange for the discharge of any of its functions by a local authority other than the authority who made the scheme;

(b) subsection (2) shall have effect with the omission of the words "unless the local authority otherwise direct" and (in the second place where they occur) the words "the local authority or".

(11) Sections 102(3) of the 1972 Act (power to include persons who are not members of the local authority concerned) and 15 of the [1989 c. 42.] Local Government and Housing Act 1989 (political balance on committees) shall not apply in relation to membership of the committee.

(12) The term of office of each of the co-opted members of an area committee shall be fixed by the committee.

(13) Section 102(2) of the 1972 Act (number of members of committee and terms of office) shall not apply in relation to the committee.

(14) In the case of an appointment made in order to comply with a direction under section 297 of the Act of 1993, the committee shall exercise its powers under subsection (12) subject to any provision of the direction relating to terms of office.

31 Sub-committees of area committees

(1) In this section "sub-committee" means a sub-committee of an area committee.

(2) The members of a sub-committee shall be appointed by the area committee from among persons who are--

(a) members of the area committee appointed under subsection (3) of section 30; or

(b) entitled to be members of the area committee by virtue of that subsection.

(3) Subject to subsection (10), a sub-committee may appoint additional persons, including persons who are not members of the area committee concerned, as members of the sub-committee.

(4) No other persons shall be eligible for appointment to a sub-committee.

(5) In this section, in relation to a sub-committee, "co-opted member" means any member of the sub-committee appointed under subsection (3).

(6) Where the Secretary of State has given a direction under section 297 of the [1993 c. 35.] Education Act 1993 (power to direct appointment of members of certain committees) which applies to a sub-committee, it shall be the duty of the area committee concerned and the sub-committee to secure compliance with the direction.

(7) A co-opted member of a sub-committee shall not be entitled to vote at any meeting of the sub-committee on any question which falls to be decided at that meeting.

(8) Nothing in subsection (7) shall prevent the appointment of a person in compliance with a direction under section 297 of the Act of 1993 as a voting member of a sub-committee.

(9) Sections 102(3) of the 1972 Act (power to include persons who are not members of the local authority concerned) and 15 of the [1989 c. 42.] Local Government and Housing Act 1989 (political balance on committees) shall not apply in relation to membership of a sub-committee.

(10) The number of members of a sub-committee and their terms of office shall be fixed by the area committee concerned.

(11) Section 102(2) of the 1972 Act (number of members of committee and terms of office) shall not apply in relation to the sub-committee.

(12) In the case of an appointment made in order to comply with a direction under section 297 of the Act of 1993, the area committee shall exercise its powers under subsection (10) subject to any provision of the direction relating to terms of office.

Joint working

32 Provision of information to Secretary of State

(1) The Secretary of State may at any time before 31st March 1999 direct any new principal council to give to him--

(a) details of the arrangements which they have made, or propose to make, for the performance of specified functions of theirs; and

(b) information of a specified kind or description as to the performance of specified functions of theirs.

(2) In subsection (1) "specified", in relation to a direction, means specified in the direction.

(3) Nothing in this section is to be taken as affecting the operation of any other provision under which a local authority may be required to provide information of any kind to the Secretary of State or to any other person.

33 Joint working arrangements

(1) Where it appears to the Secretary of State--

(a) that particular functions of a new principal council should be discharged in accordance with arrangements entered into by that council and one or more other such councils in relation to the exercise of those functions, but

(b) that satisfactory arrangements for the exercise of those functions will not be, or are unlikely to be, in force on or after 1st April 1996,

he may, at any time before 31st March 1999, give a direction to the councils concerned requiring them to make specified arrangements in relation to the exercise of specified functions.

(2) The arrangements specified may, in particular, be, or include, arrangements for the joint exercise of functions.

(3) In this section "specified", in relation to a direction, means specified in the direction.

(4) In considering whether to give a direction under subsection (1), the Secretary of State shall have regard, in particular, to the desirability of the functions in question being discharged effectively and in a financially efficient manner.

(5) A direction under subsection (1) shall remain in force--

(a) until it is withdrawn by a notice in writing given by the Secretary of State to the councils concerned; or

(b) where a period is specified in the direction during which the direction is to have effect, and the direction has not been withdrawn by the Secretary of State, until the end of that period.

(6) A direction under subsection (1) may at any time while it is in force be varied by the Secretary of State.

(7) Nothing in subsection (5) or (6) shall be taken to affect the power of the Secretary of State to give a further direction under subsection (1).

34 Joint authorities

(1) Where a direction has been given by the Secretary of State under section 33 but it appears to him that--

(a) it has proved impracticable to implement the arrangements required by the direction,

(b) the required arrangements have been implemented but are not working satisfactorily, or

(c) the required arrangements are, or have been, working satisfactorily but are unlikely to continue to work satisfactorily,

he may by order establish a body to act for the areas of the councils to which the direction relates.

(2) A body established under subsection (1) shall be known as a joint authority and may be established as a body corporate.

(3) A joint authority shall consist of such number of members as may be determined by the order establishing it.

(4) Those members shall be appointed by the councils to which the order relates, from among their members, each council being entitled to appoint such number of members as may be specified in the order.

(5) Where at any time the number of members of a joint authority is less than the required number, the Secretary of State may, if he is satisfied that the councils concerned have had a reasonable opportunity to make the necessary appointment or appointments--

(a) give such direction to the councils concerned or to any of them as he considers appropriate; and

(b) appoint such members (from among such persons as he considers appropriate) as may be required to complete the membership of the authority.

(6) The joint authority shall discharge the functions to which the direction relates, from a date specified in the order establishing the authority until such alternative arrangements for the exercise of the functions as appear to the Secretary of State to be satisfactory are brought into force.

(7) The power conferred on the Secretary of State by subsection (1) may not be exercised after 31st March 1999 but an order under subsection (1) which is made before that date shall continue in force until revoked by the Secretary of State.

(8) An order under this section may--

(a) provide for the joint authority concerned to be treated, for all purposes or only for the purposes of such enactments as may be prescribed, as a new principal council;

(b) provide for such enactments relating to new principal councils as may be prescribed (either generally or by reference to specified enactments) to have effect in relation to the joint authority concerned subject to such modifications as may be prescribed;

(c) make provision enabling the Secretary of State to require the joint authority concerned to submit to him a scheme for winding itself up and for the transfer to any of the councils for whose areas the joint authority is established of any of the joint authority's property, rights and liabilities or of any functions which it carries out.

(9) The Secretary of State may by order provide--

(a) for excluding any functions, or any functions in any area, from those falling to be carried out by a joint authority; and

(b) for giving effect (with or without modifications) to any scheme submitted to him under a provision made by virtue of subsection (8) for the dissolution of a joint authority.

(10) The power to make an order under this section includes, in particular, power to make provision for the transfer of property, rights and liabilities.

PART IV Finance

35 Council tax, rating and the community charge

(1) The new principal councils shall be billing authorities in relation to the financial year beginning on 1st April 1996 and in relation to subsequent financial years.

(2) In this section "billing authority" means an authority which is a billing authority for the purposes of--

(a) Part I of the [1992 c. 14.] Local Government Finance Act 1992 (council tax); and

(b) Part III of the [1988 c. 41.] Local Government Finance Act 1988 (non-domestic rating).

(3) In the period before 1st April 1996, the old authorities concerned shall continue to exercise their functions as billing authorities in respect of matters arising in connection with financial years before the financial year beginning on that date.

(4) After 31st March 1996, the new principal councils shall have the same functions in relation to council tax, rating (including non-domestic rating) and the community charge as the old authorities would have had--

(a) in connection with those matters, and

(b) in relation to any financial year beginning before 1996,

if the old authorities had not been abolished.

(5) For section 1(2) of the Act of 1992 substitute--

" (2) In this Part "billing authority" means--

(a) in relation to England, a district council or London borough council, the Common Council or the Council of the Isles of Scilly, and

(b) in relation to Wales, a county council or county borough council. "

(6) In section 39(1) of the Act of 1992 (precepting authorities), in paragraph (a) at the end add "in England".

36 Valuation lists for Welsh billing authorities

After section 22 of the [1992 c. 14.] Local Government Finance Act 1992, insert--

" 22A Amalgamated valuation lists for Welsh billing authorities

(1) Every new listing officer shall, on 1st April 1996, compile a list ("the amalgamated list") for the new billing authority for which he is appointed, based on the information provided for him under this section.

(2) The amalgamated list shall contain the information which was included in the valuation lists compiled on 1st April 1993 for the old billing authorities ("the current lists") so far as that information is relevant.

(3) The amalgamated list shall also include the information which was included in any current list by way of an alteration, so far as that information is relevant.

(4) A new listing officer's amalgamated list shall be treated, for the purposes of this Act, as the valuation list for his new billing authority and shall be deemed to have come into force on 1st April 1993.

(5) Where an amalgamated list contains information which is derived from any alteration made to any valuation list or lists from which it is derived, the amalgamated list shall be treated as having been varied on the date on which the alteration was made.

(6) Subsections (2) to (8) of section 22 above shall not apply in relation to an amalgamated list.

(7) Every listing officer shall--

(a) on or before 15th November 1995, provide the appropriate new listing officer with the information recorded in his valuation list as at 31st October 1995 so far as it is relevant; and

(b) on 31st March 1996, provide the appropriate new listing officer with the information recorded in his valuation list as at that date, so far as it is relevant.

(8) A new listing officer receiving any information under subsection (7)(a) above shall send a copy of it to his new billing authority as soon as is reasonably practicable.

(9) As soon as is reasonably practicable after compiling the amalgamated list, a new listing officer shall send a copy of it to his new billing authority.

(10) A new billing authority receiving a copy of an amalgamated list under subsection (9) above shall, as soon as is reasonably practicable, deposit it at its principal office.

(11) In this section--

"old authority" has the same meaning as in the Local Government (Wales) Act 1994;
"old billing authority" means a billing authority which is an old authority;
"new billing authority" means a billing authority which is a new principal council;
"listing officer" means a listing officer for an old billing authority;
"new listing officer" means a listing officer for a new billing authority; and
"new principal council" has the same meaning as in the Local Government (Wales) Act 1994.

(12) For the purposes of this section--

(a) references to a listing officer's valuation list are references to the valuation list maintained by him under this Act;

(b) a new listing officer's area is the area of the new billing authority for which he is appointed;

(c) the appropriate new listing officer, in relation to any information which relates to a dwelling is the new listing officer for the new billing authority in whose area the dwelling is situated; and

(d) information is relevant in relation to a new listing officer, or his area, if it relates to a dwelling which is in his area. "

37 Local non-domestic rating lists for Welsh billing authorities

After section 41 of the [1988 c. 41.] Local Government Finance Act 1988, insert--

" 41A Local non-domestic rating lists for Welsh billing authorities

(1) Every new valuation officer shall, on 1st April 1996, compile a list ("the amalgamated list") for the new billing authority for which he is appointed, based on the information provided for him under this section.

(2) The amalgamated list shall contain the information which was included in the local non-domestic rating lists compiled on 1st April 1995 for the old billing authorities ("the current lists") so far as that information is relevant.

(3) The amalgamated list shall also include the information which was included in any current list by way of an alteration, so far as that information is relevant.

(4) A new valuation officer's amalgamated list shall be treated, for the purposes of this Act, as the local non-domestic rating list for his new billing authority and shall be deemed to have come into force on 1st April 1995.

(5) Where an amalgamated list contains information which is derived from any alteration made to any list or lists from which it is derived, the amalgamated list shall be treated as having been varied on the date on which the alteration was made.

(6) Subsections (2) to (6B) of section 41 above shall not apply in relation to an amalgamated list.

(7) Every valuation officer shall--

(a) on or before 15th October 1995, provide the appropriate new valuation officer with the information recorded in his local non-domestic rating list as at 30th September 1995, so far as it is relevant; and

(b) on 31st March 1996, provide the appropriate new valuation officer with the information recorded in his local non-domestic rating list as at that date, so far as it is relevant.

(8) A new valuation officer receiving any information under subsection (7)(a) above shall send a copy of it to his new billing authority as soon as is reasonably practicable.

(9) As soon as is reasonably practicable after compiling an amalgamated list, a new valuation officer shall send a copy of it to his new billing authority.

(10) A new billing authority receiving a copy of an amalgamated list under subsection (9) above shall, as soon as is reasonably practicable, deposit it at its principal office.

(11) In this section--

"old authority" has the same meaning as in the Local Government (Wales) Act 1994;
"old billing authority" means a billing authority which is an old authority;
"new billing authority" means a billing authority which is a new principal council;
"new principal council" has the same meaning as in the Local Government (Wales) Act 1994;
"valuation officer" means a valuation officer for an old billing authority; and
"new valuation officer" means a valuation officer for a new billing authority.

(12) For the purposes of this section--

(a) references to a valuation officer's local non-domestic rating list are references to the local non-domestic rating list maintained by him under this Act;

(b) a new valuation officer's area is the area of the new billing authority for which he is appointed;

(c) the appropriate new valuation officer, in relation to any information which relates to any hereditament is the new valuation officer for the new billing authority in whose area the hereditament is situated; and

(d) information is relevant in relation to a new valuation officer, or his area, if it relates to a hereditament which is in his area. "

38 Council funds for new principal councils

(1) Each new principal council shall establish, and then maintain, a fund to be known as their council fund.

(2) Any sums received by a new principal council shall be paid into their council fund.

(3) All payments by a new principal council shall be made out of their council fund.

(4) Subsections (2) and (3) do not apply in relation to any sums to be paid into, or payments to be made out of, a trust fund.

(5) Section 101(1)(b) of the 1972 Act (delegation) shall not apply as regards the functions of a new principal council in relation to their council fund.

(6) Each new principal council shall keep accounts of sums paid into, and of payments made out of, their council fund.

(7) Any account kept only in respect of the general expenses of a new principal council shall be known as their general account and any account kept only in respect of any class of their special expenses shall be known as a special account.

(8) The Secretary of State may make regulations--

(a) requiring assets of a prescribed description which fall within a council fund to be held in a separate fund within the council fund;

(b) requiring any fund (other than a trust fund) of a prescribed description which is established by a new principal council to be maintained as a separate fund within their council fund.

(9) The Secretary of State may by regulations make provision with respect to the liability of new principal councils to make payments from their council funds in respect of precepts issued under Chapter IV of Part I of the [1992 c. 14.] Local Government Finance Act 1992.

(10) The regulations may, in particular, include provision--

(a) that anything falling to be paid must be paid--

(i) within a prescribed period; and

(ii) in instalments of such amounts, and at such times, as are determined by the billing authority in accordance with prescribed rules;

(b) that the billing authority must inform any precepting authorities when instalments will be paid and how they are to be calculated;

(c) that if an instalment is not paid to a precepting authority in accordance with the regulations, it is to be entitled to interest on the amount of the instalment;

(d) as to the circumstances in which the billing authority is to be treated as having discharged the liability mentioned in subsection (9);

(e) as to the recovery (by deduction or otherwise) of any excess amount paid by the billing authority to any precepting authority in purported discharge of the liability mentioned in subsection (9).

(11) Schedule 12 makes minor and consequential amendments with respect to funds.

PART V Residuary matters and staff

39 The Residuary Body for Wales or Corff Gweddilliol Cymru

(1) On 31st March 1996 or on such earlier day as the Secretary of State may by order appoint, there shall be a body corporate to be known as the Residuary Body for Wales or Corff Gweddilliol Cymru (but in this Act referred to as the Residuary Body).

(2) Schedule 13 shall have effect with respect to the Residuary Body.

40 The Staff Commission for Wales or Comisiwn Staff Cymru

(1) There shall be a body corporate to be known as the Staff Commission for Wales or Comisiwn Staff Cymru (but in this Act referred to as the Commission).

(2) The Commission shall--

(a) advise the Secretary of State on the steps necessary to safeguard the interests of staff employed by--

(i) the old authorities;

(ii) the new principal councils; or

(iii) the Residuary Body;

(b) consider and keep under review--

(i) arrangements for the recruitment of the staff of any of those bodies; and

(ii) the organisation, management and remuneration of the staff of the new principal councils;

(c) consider and keep under review the arrangements for the transfer of staff from any of the old authorities in consequence of any provision made by or under this Act; and

(d) consider such staffing problems and other staffing matters as may be referred to it by the Secretary of State as arising out of any provision made by or under this Act.

(3) The Secretary of State may give directions to the Commission as to its procedure and to any of the new principal councils or old authorities, or the Residuary Body, with respect to--

(a) the supply of any information requested, and the implementation of any advice given, by the Commission; and

(b) the payment by such a council or authority, or by the Residuary Body, of any expenses incurred by the Commission in doing anything requested by that council or authority or by the Residuary Body.

(4) Schedule 14 makes provision with respect to the constitution of the Commission and related matters.

41 Continuity of employment in certain cases of voluntary transfer

(1) This section applies to a person ("the employee") who at any time ceases to be employed by an old authority if--

(a) the termination of his employment is attributable to any provision made by or under this Act;

(b) he is subsequently employed by another person; and

(c) by virtue of section 84 of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 (renewal or re-engagement) that subsequent employment precludes his receiving any redundancy payment under Part VI of that Act with respect to his terminated employment.

(2) Schedule 13 to the Act of 1978 (computation of period of employment for the purposes of that Act) shall have effect as if it provided--

(a) for the period of the employee's employment by the old authority to count as a period of employment with his new employer; and

(b) for the change of employer not to break the continuity of the period of his employment.

(3) For the purposes of any provision of the employee's contract of employment with his new employer which depends on his length of service with that employer, the period of his employment with the old authority shall count as a period of employment with his new employer.

42 Transfers of staff

(1) This section applies to any person ("a designated employee") who, immediately before 1st April 1996 was employed by an abolished body under a contract of employment which would have continued but for the abolition of that body and who is designated, or falls within a class or description of person designated, for the purposes of this section by an order made, at any time, by the Secretary of State.

(2) The contract of employment between a designated employee and the abolished body concerned shall not be terminated by the abolition of the body but shall have effect from 1st April 1996 as if originally made between him and such new employer as may be specified by the relevant designation order under this section.

(3) Such an order may specify as the new employer a new principal council or the Residuary Body.

(4) Without prejudice to subsection (2)--

(a) all the rights, powers, duties and liabilities of the abolished body under, or in connection with, the contract shall by virtue of this section be transferred on 1st April 1996 to the new employer; and

(b) anything done before 1st April 1996 by or in relation to the abolished body in respect of the contract or the designated employee shall be deemed from that date to have been done by or in relation to the new employer.

(5) Nothing in this section affects any right of a designated employee to terminate his contract of employment if a substantial change is made in his working conditions, to his detriment, but no such right shall arise by reason only of the change of employer effected by this section.

(6) A class or description of person may be specified by an order under subsection (1) by reference to such list or other document or documents as may be identified in accordance with the order.

(7) In this section "abolished body" means an old authority or any joint board which ceases to exist as a result of section 59.

43 Compensation for loss of office or diminution of emoluments

(1) Where any person--

(a) is, at any time after the passing of this Act, in the service of an old authority, a new principal council or the Residuary Body, and

(b) suffers loss of employment or diminution of emoluments which is attributable to any provision made by or under this Act,

compensation in respect of any such loss or diminution suffered by him shall be paid only in accordance with regulations made under section 24 of the [1972 c. 11.] Superannuation Act 1972.

(2) Accordingly, none of the bodies mentioned in subsection (1) shall pay any such compensation under any other statutory provision, by virtue of any provision in a contract or otherwise.

(3) Subsections (1) and (2) do not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by him before 1st December 1993.

(4) No compensation shall be payable under regulations made under the [1972 c. 11.] Superannuation Act 1972, to or in respect of a person to whom subsection (1) applies, in respect of any loss or diminution attributable to the termination of a late contract on or before 1st April 1996.

(5) In subsection (4)--

"late contract" means a contract which is made after 30th November 1993 and provides for the employment of the person concerned for a fixed term extending beyond 31st March 1996; and
"loss or diminution" means loss or diminution of a kind mentioned in subsection (1).

(6) For the purpose of determining under section 82(5) or (6) or 84(3) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978--

(a) whether the provisions of a new contract offered to a person employed by any such body as is mentioned in subsection (1) differ from the corresponding provisions of his previous contract, and

(b) whether employment under the new contract is suitable in relation to that person,

there shall be treated as forming part of the remuneration payable under the new contract any compensation to which that person is or, if he accepted the offer, would be entitled in accordance with this section.

(7) Subject to subsection (6), nothing in this section shall be taken to affect any entitlement to a redundancy payment under Part VI of the Act of 1978 or to any payment by virtue of any provision of the [1972 c. 11.] Superannuation Act 1972 other than section 24 of that Act.

44 Redundancy payments

(1) In determining the effect of any provision of--

(a) Part IV, V or VI of the Employment Protection (Consolidation) Act 1978, or

(b) Chapter II of Part IV of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992,

in relation to a person whose contract of employment is terminated as a result of this Act, it shall be assumed that he was dismissed by the old authority concerned by reason of redundancy immediately before 1st April 1996 and that his dismissal was proposed by the authority.

(2) For the purposes of this section--

(a) a person's contract of employment is terminated as a result of this Act if--

(i) immediately before 1st April 1996 he was in the service of an old authority under a contract of employment which would have continued in force if that authority had not been abolished; and

(ii) his contract of employment is not transferred to a new principal council or to the Residuary Body; and

(b) a contract of employment is transferred--

(i) to a new principal council, if it is treated by any provision made by this Act, or by or under any other enactment, as continued in force with that council on 1st April 1996; or

(ii) to the Residuary Body, if it is so treated as continued in force with the Residuary Body on that date.

(3) The new principal council to whom an old authority's liability as respects any redundancy payment under Part VI of the Act of 1978 is transferred under this Act shall be treated as the employer of the person concerned for the purposes of sections 101, 102, 108 and 119 of the Act of 1978 (ancillary provisions about redundancy payments).

(4) As respects any such redundancy payment, references to the relevant date in sections 81(4), 82(1) and 101 of the Act of 1978, and in Schedule 4 to that Act, shall be construed as references to 31st March 1996.

45 Other compensation payments

(1) This section applies where any contract of employment made before 1st December 1993 is terminated as a result of this Act.

(2) Subsection (2) of section 44 applies for the purposes of this section as it applies for the purposes of that section.

(3) If the contract--

(a) provided for the employee's employment for a fixed term extending beyond 31st March 1996, but

(b) did not provide for the earlier termination of the contract by the authority concerned,

the employee shall be treated as having been entitled, immediately before 1st April 1996, to receive from the old authority an amount equal to the damages which he would have been entitled to recover from that authority if they had not been abolished but had dismissed him immediately before that date.

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