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Provide for a mechanism for statutory redundancy pay which links it to |
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average weekly earnings; and for connected purposes. |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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1 | Linking of statutory redundancy pay to average weekly earnings |
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(1) | This section applies to redundancy payments, as specified in section 227(1)(c) |
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of the Employment Rights Act 1996 (c. 18) (maximum amount). |
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(2) | The Secretary of State must, within twelve months of the day on which this Act |
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comes into force, make regulations providing for— |
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(a) | a method of calculation of statutory redundancy pay that links it, in |
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such a manner as the Secretary of State considers appropriate, to |
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(b) | the regulations to take effect from a date within twelve months of the |
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date on which the regulations are made; and |
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(c) | the link to take account, in subsequent years, of an annual comparison |
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of statutory redundancy pay with average weekly earnings. |
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(3) | Before making regulations under subsection (2) the Secretary of State must— |
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(a) | have regard to the desirability of including in the mechanism an annual |
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comparison between the annual rate of change in— |
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(i) | average weekly earnings, and |
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(ii) | the retail prices index; |
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(b) | consult the Confederation of British Industry and the Trades Union |
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(4) | Regulations under this section shall be made by statutory instrument. |
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(5) | Regulations under this section are subject to annulment in pursuance of a |
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resolution of either House of Parliament. |
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“average weekly earnings” means the latest figure for average weekly |
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earnings published by the Office for National Statistics; |
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“retail prices index” has the meaning given by section 34(5) of the |
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Employment Relations Act 1999 (c. 26). |
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3 | Short title, commencement and extent |
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(1) | This Act may be cited as the Statutory Redundancy Pay (Amendment) Act |
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(2) | This Act comes in to force at the end of the period of one month beginning with |
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the day on which it is passed. |
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(3) | This Act extends to England and Wales and Scotland. |
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