Employment Protection Act 1975

• (1) The amount of the compensation awarded by a tribunal on a complaint under section 54 above shall be such amount as the tribunal considers just and equitable in all the circumstances having regard to the infringement of the complainant's right under section 53 above by the employer's action complained of and to any loss sustained by the complainant which is attributable to that action.

• (2) The said loss shall be taken to include—

• (a) any expenses reasonably incurred by the complainant in consequence of the action complained of, and

• (b) loss of any benefit which he might reasonably be expected to have had but for that action.

• (3) In ascertaining the said loss the tribunal shall apply the same rule concerning the duty of a person to mitigate his loss as applies to damages recoverable under the common law of England and Wales or of Scotland, as the case may be.

• (4) In determining the amount of compensation to be awarded under subsection (1) above no account shall be taken of any pressure as is referred to in section 55(2) above, and that question shall be determined as if no such pressure had been exercised.

• (5) Where the tribunal finds that the action complained of was to any extent caused or contributed to by any action of the complainant it shall reduce the amount of the compensation by such proportion as it considers just and equitable having regard to that finding.

Time off work

Time off for carrying out trade union duties

57

• (1) An employer shall permit an employee of his who is an official of an independent trade union recognised by him to take time off, subject to and in accordance with subsection (2) below, during the employee's working hours for the purpose of enabling him—

• (a) to carry out those duties of his as such an official which are concerned with industrial relations between his employer and any associated employer, and their employees; or

• (b) to undergo training in aspects of industrial relations which is—

• (i) relevant to the carrying out of those duties; and

• (ii) approved by the Trades Union Congress or by the independent trade union of which he is an official.

• (2) The amount of time off which an employee is to be permitted to take under this section and the purposes for which, the occasions on which and any conditions subject to which time off may be so taken are those that are reasonable in all the circumstances having regard to any relevant provisions of a Code of Practice issued by the Service under section 6 above.

• (3) In the Code of Practice referred to in section 6(2)(b)(i) above the Service shall in particular provide practical guidance on the circumstances in which a trade union official is to be permitted to take time off under this section in respect of duties connected with industrial action.

• (4) An employer who permits an employee to take time off under this section for any purpose shall, subject to the following provisions of this section, pay him for the time taken off for that purpose in accordance with the permission—

• (a) where the employee's remuneration for the work he would ordinarily have been doing during that time does not vary with the amount of work done, as if he had worked at that work for the whole of that time;

• (b) where the employee's remuneration for that work varies with the amount of work done, an amount calculated by reference to the average hourly earnings for that work.

• (5) The average hourly earnings referred to in subsection (4)(b) above shall be the average hourly earnings of the employee concerned or, if no fair estimate can be made of those earnings, the average hourly earnings for work of that description of persons in comparable employment with the same employer or, if there are no such persons, a figure of average hourly earnings which is reasonable in the circumstances.

• (6) Subject to subsection (7) below, a right to be paid any amount under subsection (4) above shall not affect any right of an employee in relation to remuneration under his contract of employment (hereafter in this section referred to as " contractual remuneration ").

• (7) Any contractual remuneration paid to an employee in respect of a period of time off to which subsection (1) above applies shall go towards discharging any liability of the employer under subsection (4) above in respect of that period, and conversely any payment of any amount under subsection (4) above in respect of a period shall go towards discharging any liability of the employer to pay contractual remuneration in respect of that period.

• (8) An employee who is an official of an independent trade union recognised by his employer may present a complaint to an industrial tribunal that his employer has failed to permit him to take time off as required by this section or to pay him the whole or part of any amount so required to be paid.

Time off for trade union activities

58

• (1) An employer shall permit an employee of his who is a member of an appropriate trade union to take time off, subject to and in accordance with subsection (3) below, during the employee's working hours for the purpose of taking part in any trade union activity to which this section applies.

• (2) In this section " appropriate trade union ", in relation to an employee of any description, means an independent trade union which is recognised by his employer in respect of that description of employee, and the trade union activities to which this section applies are—

• (a) any activities of an appropriate trade union of which the employee is a member ; and

• (b) any activities, whether or not falling within paragraph (a) above, in relation to which the employee is acting as a representative of such a union,

excluding activities which themselves consist of industrial action whether or not in contemplation or furtherance of a trade dispute.

• (3) The amount of time off which an employee is to be permitted to take under this section and the purposes for which, the occasions on which and any conditions subject to which time off may be so taken are those that are reasonable in all the circumstances having regard to any relevant provisions of a Code of Practice issued by the Service under section 6 above.

• (4) In the Code of Practice referred to in section 6(2)(b)(ii) above the Service shall in particular provide practical guidance on the following matters, that is to say, the question whether, and the circumstances in which a trade union member is to be permitted to take time off under this section for trade union activities connected with industrial action.

• (5) An employee who is a member of an independent trade union recognised by his employer may present a complaint to an industrial tribunal that his employer has failed to permit him to take time off as required by this section.

Time off for public duties

59

• (1) An employer shall permit an employee of his who is—

• (a) a justice of the peace ;

• (b) a member of a local authority;

• (c) a member of any statutory tribunal;

• (d) a member of, in England and Wales, a Regional Health Authority or Area Health Authority or, in Scotland, a Health Board;

• (e) a member of, in England and Wales, the managing or governing body of an educational establishment maintained by a local education authority, or, in Scotland, a school or college council or the governing body of a central institution or a college of education; or

• (f) a member of, in England and Wales, a water authority or, in Scotland, river purification board,

to take time off, subject to and in accordance with subsection (4) below, during the employee's working hours for the purposes of performing any of the duties of his office or, as the case may be, his duties as such a member.

• (2) In subsection (1) above—

• (a) " local authority " in relation to England and Wales includes the Common Council of the City of London but otherwise has the same meaning as in the Local Government Act 1972, and in relation to Scotland has the same meaning as in the Local Government (Scotland) Act 1973 ;

• (b) "Regional Health Authority" and "Area Health Authority" have the same meaning as in the National Health Service Reorganisation Act 1973, and " Health Board" has the same meaning as in the National Health Service (Scotland) Act 1972 ;

• (c) " local education authority " means the authority designated by section 192(1) of the Local Government Act 1972, " school or college council" means a body appointed under section 125(1) of the Local Government (Scotland) Act 1973, and "central institution" and " college of education " have the meanings assigned to them by section 145(10) and (14) respectively of the Education (Scotland) Act 1962 ; and

• (d) " river purification board " means a board established under section 135 of the Local Government (Scotland) Act 1973.

• (3) For the purposes of subsection (1) above the duties of a member of a body referred to in paragraphs (b) to (f) of that subsection are:—

• (a) attendance at a meeting of the body or any of its committees or sub-committees;

• (b) the doing of any other thing approved by the body, or anything of a class so approved, for the purpose of the discharge of the functions of the body or of any of its committees or sub-committees.

• (4) The amount of time off which an employee is to be permitted to take under this section and the occasions on which and any conditions subject to which time off may be so taken are those that are reasonable in all the circumstances having regard, in particular, to the following:—

• (a) how much time off is required for the performance of the duties of the office or as a member of the body in question, and how much time off is required for the performance of the particular duty ;

• (b) how much time off the employee has already been permitted under this section or sections 57 and 58 above;

• (c) the circumstances of the employer's business and the effect of the employee's absence on the running of that business.

• (5) The Secretary of State may by order—

• (a) modify the provisions of subsection (1) above by adding any office or body to, or removing any office or body from, that subsection or by altering the description of any office or body in that subsection; and

• (b) modify the provisions of subsection (3) above.

• (6) An employee may present a complaint to an industrial tribunal that his employer has failed to permit him to take time off as required by this section.

Provisions as to industrial tribunals

60

• (1) An industrial tribunal shall not consider—

• (a) a complaint under section 57, 58 or 59 above that an employer has failed to permit an employee to take time off; or

• (b) a complaint under section 57 above that an employer has failed to pay an employee the whole or part of any amount required to be paid under that section;

unless it is presented within three months of the date when the failure occurred or within such further period as the tribunal considers reasonable in a case where it is satisfied that it was not reasonably practicable for the complaint to be presented within the period of three months.

• (2) Where an industrial tribunal finds any complaint mentioned in subsection (1)(a) above well-founded the tribunal shall make a declaration to that effect and may make an award of compensation to be paid by the employer to the employee which shall be of such amount as the tribunal considers just and equitable in all the circumstances having regard to the employer's default in failing to permit time off to be taken by the employee and to any loss sustained by the employee which is attributable to the matters complained of.

• (3) Where on a complaint under section 57 above an industrial tribunal finds that the employer has failed to pay the employee the whole or part of the amount required to be paid under that section, the tribunal shall order the employer to pay the employee the amount which it finds due to him.

Time off to look for work or make arrangements for training

61

• (1) An employee who is given notice of dismissal by reason of redundancy shall, subject to the following provisions of this section, be entitled before the expiration of his notice to be allowed by his employer reasonable time off during the employee's working hours in order to look for new employment or make arrangements for training for future employment.

• (2) An employee shall not be entitled to time off under this section unless, on whichever is the later of the following dates, that is to say.—

• (a) the date on which the notice is due to expire ; or

• (b) the date on which it would expire were it the notice required to be given by section 1(1) of the Contracts of Employment Act 1972 (minimum period of notice),

he will have been or, as the case may be, would have been continuously employed for a period of two years or more.

• (3) An employee who is allowed time off during his working hours under subsection (1) above shall, subject to the following provisions of this section, be entitled to be paid remuneration by his employer for the period of absence at the appropriate hourly rate.

• (4) The appropriate hourly rate in relation to an employee shall be the amount of one week's pay divided by—

• (a) the number of normal working hours in a week for that employee when employed under the contract of employment in force on the day when notice was given; or

• (b) where the number of such normal working hours differs from week to week or over a longer period, the average number of such hours calculated by dividing by 12 the total number of the employee's normal working hours during the period of 12 weeks ending with the last complete week before the day on which notice was given.

• (5) For the purposes of Part II of Schedule 4 to this Act as it applies for the calculation of a week's pay for the purposes of this section, the calculation date is the day on which the employer's notice was given.

• (6) In this section, " week " in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, means a week ending with that other day, and in relation to any other employee means a week ending with Saturday.

• (7) If an employer unreasonably refuses to allow an employee time off from work under this section, the employee shall, subject to subsection (11) below, be entitled to be paid an amount equal to the remuneration to which he would have been entitled under subsection (3) above if he had been allowed the time off.

• (8) An employee may present a complaint to an industrial tribunal on the ground that his employer has unreasonably refused to allow him time off under this section or has failed to pay the whole or any part of any amount to which the employee is entitled under subsection (3) or (7) above.

• (9) An industrial tribunal shall not entertain a complaint under subsection (8) above unless it is presented to the tribunal within the period of three months beginning with the day on which it is alleged that the time off should have been allowed, or within such further period as the tribunal considers reasonable in a case where it is satisfied that it was not reasonably practicable for the complaint to be presented within the period of three months.

• (10) If on a complaint under subsection (8) above the tribunal finds the grounds of the complaint well-founded it shall make a declaration to that effect and shall order the employer to pay to the employee the amount which it finds due to him.

• (11) The amount—

• (a) of an employer's liability to pay remuneration under subsection (3) above; or

• (b) which may be ordered by a tribunal to be paid by an employer under subsection (7) above,

or, where both paragraphs (a) and (b) are applicable, the aggregate amount of the liabilities referred to in those paragraphs, shall not exceed, in respect of the notice period of any employee, two-fifths of a week's pay of that employee.

• (12) Subject to subsection (13) below, a right to any amount under subsection (3) or (7) above shall not affect any right of an employee in relation to remuneration under the contract of employment (hereafter in this section referred to as " contractual remuneration ").

• (13) Any contractual remuneration paid to an employee in respect of a period when he takes time off for the purposes referred to in subsection (1) above shall go towards discharging any liability of the employer to pay remuneration under subsection (3) above in respect of that period, and conversely any payment of remuneration under subsection (3) above in respect of a period shall go towards discharging any liability of the employer to pay contractual remuneration in respect of that period.

Provisions supplementary to ss. 57 to 61

62

For the purposes of sections 57 to 61 above—

• (a) a trade union shall be treated as recognised not only if it is recognised for the purposes of collective bargaining, but also if the Service has made a recommendation for recognition which is operative within the meaning of section 15 above;

• (b) the working hours of an employee shall be taken to be any time when, in accordance with his contract of employment, he is required to be at work; and

• (c) " normal working hours " shall be construed in accordance with Part I of Schedule 4 to this Act.

Insolvency

Priority of certain debts on insolvency

63

• (1) An amount to which this section applies shall be treated for the purposes of—

• (a) section 33 of the Bankruptcy Act 1914 ;

• (b) section 118 of the Bankruptcy (Scotland) Act 1913 ; and

• (c) section 319 of the Companies Act 1948 ;

as if it were wages payable by the employer to the employee in respect of the period for which it is payable.

• (2) This section applies to any amount owed by an employer to an employee in respect of—

• (a) a guarantee payment;

• (b) remuneration on suspension on medical grounds under section 29 above;

• (c) any payment for time off under section 57(4) or 61(3) above;

• (d) remuneration under a protective award made under section 101 below.

Employee's rights on insolvency of employer

64

• (1) If on an application made to him in writing by an employee the Secretary of State is satisfied—

• (a) that the employer of that employee has become insolvent ; and

• (b) that on the relevant date the employee was entitled to be paid the whole or part of any debt to which this section applies,

the Secretary of State shall, subject to the provisions of this section, pay the employee out of the Redundancy Fund the amount to which in the opinion of the Secretary of State the employee is entitled in respect of that debt.

• (2) In this section the " relevant date " in relation to a debt means the date on which the employer became insolvent or the date of the termination of the employee's employment, whichever is the later.

• (3) This section applies to the following debts:—

• (a) any arrears of pay in respect of a period or periods not exceeding in the aggregate eight weeks ;

• (b) any amount which the employer is liable to pay the employee for the period of notice required by section 1(1) or (2) of the Contracts of Employment Act 1972 (minimum period of notice) or for any failure of the employer to give the period of notice required by section 1(1) of that Act;

• (c) any holiday pay in respect of a period or periods of holiday, not exceeding six weeks in all, to which the employee became entitled during the 12 months immediately preceding the relevant date ;

• (d) any basic award of compensation for unfair dismissal;

• (e) any reasonable sum by way of reimbursement of the whole or part of any fee or premium paid by an apprentice or articled clerk.

• (4) For the purposes of subsection (3) (a) above any such amount as is referred to in section 63(2) above shall be treated as if it were arrears of pay.

• (5) The total amount payable to an employee in respect of any debt mentioned in subsection (3) above, where the amount of that debt is referable to a period of time, shall not exceed £80 in respect of any one week or, in respect of a shorter period, an amount bearing the same proportion to £80 as that shorter period bears to a week.

• (6) The Secretary of State may vary the limit referred to in subsection (5) above after a review under section 86 below, by order made in accordance with that section.

• (7) A sum shall be taken to be reasonable for the purposes of subsection (3)(e) above in a case where a trustee in bankruptcy or liquidator has been or is required to be appointed if it is admitted to be reasonable by the trustee in bankruptcy or liquidator under section 34 of the Bankruptcy Act 1914 (preferential claims of apprentices and articled clerks), whether as originally enacted or as applied to the winding up of a company by section 317 of the Companies Act 1948.

• (8) Subsection (7) above shall not apply to Scotland, but in Scotland a sum shall be taken to be reasonable for the purposes of subsection (3)(e) above in a case where a trustee in bankruptcy or liquidator has been or is required to be appointed if it is admitted by the trustee in bankruptcy or the liquidator for the purposes of the bankruptcy or winding up.

• (9) The provisions of subsections (10) and (11) below shall apply in a case where one of the following officers (hereafter in this section referred to as the " relevant officer ") has been or is required to be appointed in connection with the employer's insolvency, that is to say, a trustee in bankruptcy, a liquidator, a receiver or manager, or a trustee under a composition or arrangement between the employer and his creditors or under a trust deed for his creditors executed by the employer; and in this subsection " liquidator " and " receiver " include the Official Receiver in his capacity as a provisional liquidator or interim receiver.

• (10) Subject to subsection (11) below, the Secretary of State shall not in such a case make any payment under this section in respect of any debt until he has received a statement from the relevant officer of the amount of that debt which appears to have been owed to the employee on the relevant date and to remain unpaid; and the relevant officer shall, on request by the Secretary of State, provide him, as soon as reasonably practicable, with such a statement.

• (11) Where—

• (a) a period of six months has elapsed since the application for a payment under this section was received by the Secretary of State, but no such payment has been made;

• (b) the Secretary of State is satisfied that a payment under this section should be made; and

• (c) it appears to the Secretary of State that there is likely to be further delay before he receives a statement about the debt in question,

then, the Secretary of State may, if the applicant so requests or, if the Secretary of State thinks fit, without such a request, make a payment under this section, notwithstanding that no such statement has been received.

Payment of unpaid contributions to occupational pension scheme

65

• (1) If, on an application made to him in writing by the persons competent to act in respect of an occupational pension scheme, the Secretary of State is satisfied that an employer has become insolvent and that at the time that he did so there remained unpaid relevant contributions falling to be paid by him to the scheme, the Secretary of State shall, subject to the provisions of this section, pay into the resources of the scheme out of the Redundancy Fund the sum which in his opinion is payable in respect of the unpaid relevant contributions.

• (2) In this section " relevant contributions " means contributions falling to be paid by an employer in accordance with an occupational pension scheme, either on his own account or on behalf of an employee; and for the purposes of this section a contribution of any amount shall not be treated as falling to be paid on behalf of an employee unless a sum equal to that amount has been deducted from the pay of the employee by way of a contribution from him.

• (3) The sum payable under this section in respect of unpaid contributions of an employer on his own account to an occupational pension scheme shall be the least of the following amounts—

• (a) the balance of relevant contributions remaining unpaid on the date when he became insolvent and payable by the employer on his own account to the scheme in respect of the 12 months immediately preceding that date;

• (b) the amount certified by an actuary to be necessary for the purpose of meeting the liability of the scheme on dissolution to pay the benefits provided by the scheme to or in respect of the employees of the employer;

• (c) an amount equal to 10 per cent, of the total amount of remuneration paid or payable to those employees in respect of the 12 months immediately preceding die date on which the employer became insolvent.

• (4) For the purposes of subsection (3)(c) above, "remuneration " includes holiday pay, maternity pay and any such payment as is referred to in section 63(2) above.

• (5) Any sum payable under this section in respect of unpaid contributions on behalf of an employee shall not exceed the amount deducted from the pay of the employee in respect of the employee's contributions to the occupational pension scheme during the 12 months immediately preceding the date on which the employer became insolvent.

• (6) The provisions of subsections (7) to (9) below shall apply in a case where one of the following officers (hereafter in this section referred to as the " relevant officer") has been or is required to be appointed in connection with the employers' insolvency, that is to say, a trustee in bankruptcy, a liquidator, a receiver or manager, or a trustee under a composition or arrangement between the employer and his creditors or under a trust deed for his creditors executed by the employer; and in this subsection " liquidator " and " receiver " include the Official Receiver in his capacity as a provisional liquidator or interim receiver.

• (7) Subject to subsection (9) below, the Secretary of State shall not in such a case make any payment under this section in respect of unpaid relevant contributions until he has received a statement from the relevant officer of the amount of relevant contributions which appear to have been unpaid on the date on which the employer became insolvent and to remain unpaid; and the relevant officer shall, on request by the Secretary of State provide him, as soon as reasonably practicable, with such a statement.

• (8) Subject to subsection (9) below, an amount shall be taken to be payable, paid or deducted as mentioned in subsection (3)(a) or (c) or subsection (5) above, only if it is so certified by the relevant officer.

• (9) Where—

• (a) a period of six months has elapsed since the application for a payment under this section was received by the Secretary of State, but no such payment has been made;

• (b) the Secretary of State is satisfied that a payment under this section should be made; and

• (c) it appears to the Secretary of State that there is likely to be further delay before he receives a statement or certificate about the contributions in question,

then, the Secretary of State may, if the applicants so request or, if the Secretary of State thinks fit, without such a request, make a payment under this section, notwithstanding that no such statement or certificate has been received.

Complaint to industrial tribunal

66

• (1) A person who has applied for a payment under section 64 above may, within the period of three months beginning with the date on which the decision of the Secretary of State on that application was communicated to him or, if that is not reasonably practicable, within such further period as is reasonable, present a complaint to an industrial tribunal that—

• (a) the Secretary of State has failed to make any such payment; or

• (b) any such payment made by the Secretary of State is less than the amount which should have been paid.

• (2) Any persons who are competent to act in respect of an occupational pension scheme and who have applied for a payment to be made under section 65 above into the resources of the scheme may, within the period of three months beginning with the date on which the decision of the Secretary of State on that application was communicated to them, or, if that is not reasonably practicable, within such further period as is reasonable, present a complaint to an industrial tribunal that—

• (a) the Secretary of State has failed to make any such payment; or

• (b) any such payment made by him is less than the amount which should have been paid.

• (3) Where an industrial tribunal finds that the Secretary of State ought to make a payment under section 64 or 65 above, it shall make a declaration to that effect and shall also declare the amount of any such payment which it finds the Secretary of State ought to make.

Transfer to the Secretary of State of rights and remedies

67

• (1) Where in pursuance of section 64 above the Secretary of State makes any payment to an employee in respect of any debt to which that section applies—

• (a) any rights and remedies of the employee in respect of' that debt (or, if the Secretary of State has paid only part of it, in respect of that part) shall, on the making of the payment, become rights and remedies of the Secretary of State; and

• (b) any decision of an industrial tribunal requiring an employer to pay that debt to the employee shall have the effect that the debt or, as the case may be, that part of it which the Secretary of State has paid, is to be paid to the Secretary of State.

• (2) There shall be included among the rights and remedies which become rights and remedies of the Secretary of State in accordance with subsection (1)(a) above any right to be paid in priority to other creditors of the employer in accordance with—

• (a) section 33 of the Bankruptcy Act 1914 ;

• (b) section 118 of the Bankruptcy (Scotland) Act 1913; and

• (c) section 319 of the Companies Act 1948,

and the Secretary of State shall be entitled to be so paid in priority to any other unsatisfied claim of the employee; and in computing for the purposes of any of those provisions any limit on the amount of sums to be so paid any sums paid to the Secretary of State shall be treated as if they had been paid to the employee.

• (3) Where in pursuance of section 65 above the Secretary of State makes any payment into the resources of an occupational pension scheme in respect of any contributions to the scheme, any rights and remedies in respect of those contributions belonging to the persons competent to act in respect of the scheme shall, on the making of the payment, become rights and remedies of the Secretary of State.

• (4) Any sum recovered by the Secretary of State in exercising any right or pursuing any remedy which is his by virtue of this section shall be paid into the Redundancy Fund.

Power of Secretary of State to obtain information in connection with applications

68

• (1) Where an application is made to the Secretary of State under section 64 or 65 above in respect of a debt owed, or contributions to an occupational pension scheme falling to be made, by an employer, the Secretary of State may require—

• (a) the employer to provide him with such information as the Secretary of State may reasonably require for the purpose of determining whether the application is well-founded ; and

• (b) any person having the custody or control of any relevant records or other documents to produce for examination on behalf of the Secretary of State any such document in that person's custody or under his control which is of such a description as the Secretary of State may require.

• (2) Any such requirement shall be made by notice in writing given to the person on whom the requirement is imposed and may be varied or revoked by a subsequent notice so given.

• (3) If a person refuses or wilfully neglects to furnish any information or produce any document which he has been required to furnish or produce by a notice under this section he shall be liable on summary conviction to a fine not exceeding £100.

• (4) If a person, in purporting to comply with a requirement of a notice under this section, knowingly or recklessly makes any false statement he shall be liable on summary conviction to a fine not exceeding £400.

Interpretation of ss. 64 to 68

69

• (1) For the purposes of sections 64 to 68 above an employer shall be taken to be insolvent if, but only if, in England and Wales.—

• (a) he becomes bankrupt or makes a composition or arrangement with his creditors or a receiving order is made against him;

• (b) he has died and an order is made under section 130 of the Bankruptcy Act 1914 for the administration of his estate according to the law of bankruptcy, or by virtue of an order of the court his estate is being administered in accordance with rules set out in Part I of Schedule 1 to the Administration of Estates Act 1925; or

• (c) where the employer is a company, a winding up order is made or a resolution for voluntary winding up is passed with respect to it, or a receiver or manager of its undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge.

• (2) For the purposes of sections 64 to 68 above an employer shall be taken to be insolvent if, but only if, in Scotland.—

• (a) an award of sequestration is made on his estate or he executes a trust deed for his creditors or enters into a composition contract;

• (b) he has died and a judicial factor appointed under section 163 of the Bankruptcy (Scotland) Act 1913 is required by that section to divide his insolvent estate among his creditors ; or

• (c) where the employer is a company, a winding up order is made or a resolution for voluntary winding up is passed with respect to it or a receiver of its undertaking is duly appointed.

• (3) In sections 64 to 68 above—

• " holiday pay " means— pay in respect of a holiday actually taken; or any accrued holiday pay which under the employee's contract of employment would in the ordinary course have become payable to him in respect of the period of a holiday if his employment with the employer had continued until he became entitled to a holiday ;

• " occupational pension scheme " means any scheme or arrangement which provides or is capable of providing, in relation to employees in any description of employment, benefits (in the form of pensions or otherwise) payable to or in respect of any such employees on the termination of their employment or on their death or retirement;

and any reference in those sections to the resources of such a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.

Written statement of reasons for dismissal

Written statement of reasons for dismissal

70

• (1) An employee shall be entitled—

• (a) if he is given by his employer notice of termination of his contract of employment;

• (b) if his contract of employment is terminated by his employer without notice ; or

• (c) if, where he is employed under a contract for a fixed term, that term expires without being renewed under the same contract,

to be provided by his employer, on request, within 14 days of that request, with a written statement giving particulars of the reasons for his dismissal.

• (2) An employee shall not be entitled to a written statement under subsection (1) above unless on the effective date of termination he has been, or will have been, continuously employed for a period of 26 weeks ending with the last complete week before that date.

• (3) A written statement provided under this section shall be admissible in evidence in any proceedings.

• (4) A complaint may be presented to an industrial tribunal by an employee against his employer on the ground that the employer unreasonably refused to provide a written statement under subsection (1) above or that the particulars of reasons given in purported compliance with that subsection are inadequate or untrue, and if the tribunal finds the complaint well-founded—

• (a) it may make a declaration as to what it finds the employer's reasons were for dismissing the employee; and

• (b) it shall make an award that the employer pay to the employee a sum equal to the amount of two weeks' pay.

• (5) An industrial tribunal shall not entertain a complaint under this section relating to the reasons for a dismissal unless it is presented to the tribunal at such a time that the tribunal would, in accordance with paragraph 21(4) or (4A) of Schedule 1 to the 1974 Act, entertain a complaint of unfair dismissal in respect of that dismissal presented at the same time.

• (6) For the purposes of Part II of Schedule 4 to this Act as it applies for the calculation of a week's pay for the purposes of this section, the calculation date where the dismissal was with notice is the date on which the employer's notice was given and in any other case is the effective date of termination.

Remedies for unfair dismissal

Order for reinstatement or re-engagement

71

• (1) Where on a complaint under paragraph 17 of Schedule 1 to the 1974 Act (unfair dismissal) an industrial tribunal finds that the grounds of the complaint are well-founded, it shall explain to the complainant what orders for reinstatement or re-engagement may be made under this section and in what circumstances they may be made, and shall ask him whether he wishes the tribunal to make such an order, and if he does express such a wish the tribunal may make an order under this section.

• (2) An order under this section may be an order for reinstatement (in accordance with subsections (3) and (4) below) or an order for re-engagement (in accordance with subsection (5) below), as the tribunal may decide, and in the latter case may be on such terms as the tribunal may decide.

• (3) An order for reinstatement is an order that the employer shall treat the complainant in all respects as if he had not been dismissed, and on making such an order the tribunal shall specify—

• (a) any amount payable by the employer in respect of any benefit which the complainant might reasonably be expected to have had but for the dismissal, including arrears of pay, for the period between the date of termination of employment and the date of reinstatement;

• (b) any rights and privileges, including seniority and pension rights, which must be restored to the employee; and

• (c) the date by which the order must be complied with.

• (4) Without prejudice to the generality of subsection (3) above, if the complainant would have benefited from an improvement in his terms and conditions of employment had he not been dismissed, an order for reinstatement shall require him to be treated as if he had benefited from that improvement from the date on which he would have done so but for being dismissed.

• (5) An order for re-engagement is an order that the complainant be engaged by the employer, or by a successor of the employer or by an associated employer, in employment comparable to that from which he was dismissed or other suitable employment, and on making such an order the tribunal shall specify the terms on which re-engagement is to take place including—

• (a) the identity of the employer;

• (b) the nature of the employment;

• (c) the remuneration for the employment;

• (d) any amount payable by the employer in respect of any benefit which the complainant might reasonably be expected to have had but for the dismissal, including arrears of pay, for the period between the date of termination of employment and the date of re-engagement;

• (e) any rights and privileges, including seniority and pension rights, which must be restored to the employee ; and

• (f) the date by which the order must be complied with.

• (6) In exercising its discretion under this section the tribunal shall first consider whether to make an order for reinstatement and in so doing shall take into account the following considerations, that is to say—

• (a) whether the complainant wishes to be reinstated;

• (b) whether it is practicable for the employer to comply with an order for reinstatement;

• (c) where the complainant caused or contributed to some extent to the dismissal, whether it would be just to order his reinstatement.

• (7) If the tribunal decides not to make an order for reinstatement it shall then consider whether to make an order for re-engagement and if so on what terms; and in so doing the tribunal shall take into account the following considerations, that is to say—

• (a) any wish expressed by the complainant as to the nature of the order to be made;

• (b) whether it is practicable for the employer or, as the case may be, a successor or associated employer to comply with an order for re-engagement;

• (c) where the complainant caused or contributed to some extent to the dismissal, whether it would be just to order his re-engagement and if so on what terms;

and except in a case where the tribunal takes into account contributory fault under paragraph (c) above it shall, if it orders re-engagement, do so on terms which are, so far as is reasonably practicable, as favourable as an order for reinstatement.

• (8) Where in any case an employer has engaged a permanent replacement for a dismissed employee the tribunal shall not take that fact into account in determining, for the purposes of subsection (6)(b) or (7)(b) above whether it is practicable to comply with an order for reinstatement or re-engagement unless the employer shows—

• (a) that it was not practicable for him to arrange for the dismissed employee's work to be done without engaging a permanent replacement; or

• (b) that he engaged the replacement after the lapse of a reasonable period, without having heard from "the dismissed employee that he wished to be reinstated or re-engaged, and that when the employer engaged the replacement it was no longer reasonable for him to arrange for the dismissed employee's work to be done except by a permanent replacement.

• (9) In calculating for the purpose of subsection (3)(a) or (5)(d) above any amount payable by the employer the tribunal shall take into account, so as to reduce the employer's liability, any sums received by the complainant in respect of the period between the date of termination of employment and the date of reinstatement or re-engagement by way of—

• (a) wages in lieu of notice or ex gratia payments paid by the employer;

• (b) remuneration paid in respect of employment with another employer;

and such other benefits as the tribunal thinks appropriate in the circumstances.

Enforcement of s. 71 order and compensation

72

• (1) If an order under section 71 above is made and the complainant is reinstated or, as the case may be, re-engaged but the terms of the order are not fully complied with, then, subject to paragraph 20 of Schedule 1 to the 1974 Act (limit on compensation), an industrial tribunal shall make an award of compensation, to be paid by the employer to the employee, of such amount as the tribunal thinks fit having regard to the loss sustained by the complainant in consequence of the failure to comply fully with the terms of the order.

• (2) Subject to subsection (1) above, if an order under section 71 above is made but the complainant is not reinstated or, as the case may be, re-engaged in accordance with the order—

• (a) the tribunal shall make an award of compensation for unfair dismissal, calculated in accordance with sections 73 to 76 below, to be paid by the employer to the employee; and

• (b) unless the employer satisfies the tribunal that it was not practicable to comply with the order, the tribunal shall make an additional award of compensation to be paid by the employer to the employee of an amount—

• (i) where the dismissal is of a description referred to in subsection (3) below, not less than 26 or more than 52 weeks' pay, or

• (ii) in any other case, not less than 13 or more than 26 weeks' pay.

• (3) The descriptions of dismissal in respect of which an employer may incur a higher additional award in accordance with subsection (2)(6)(i) above are the following, that is to say.—

• (a) a dismissal which is unfair by virtue of paragraph 6(4) or (5) of Schedule 1 to the 1974 Act (dismissal for membership or non-membership of a trade union, or for taking part in the activities of an independent trade union);

• (b) a dismissal which is an unlawful act of discrimination by virtue of section 3(1) of the Race Relations Act 1968 ;

• (c) a dismissal which is an act of discrimination (within the meaning of the Sex Discrimination Act 1975) which is unlawful by virtue of that Act.

• (4) Where in any case an employer has engaged a permanent replacement for a dismissed employee the tribunal shall not take that fact into account in determining, for the purposes of subsection (2)(b) above whether it was. practicable to comply with the order for reinstatement or re-engagement unless die employer shows that it was not practicable for him to arrange for the dismissed employee's work to be done without engaging a permanent replacement.

• (5) If on a complaint under paragraph 17 of Schedule 1 to the 1974 Act the tribunal finds that the grounds of the complaint are well-founded, and no order is made under section 71 above the tribunal shall make an award of compensation for unfair dismissal, calculated in accordance with sections 73 to 76 below, to be paid by the employer to the employee.

• (6) Where in any case the tribunal makes an award of compensation for unfair dismissal, calculated in accordance with sections 73 to 76 below, and the tribunal finds that the complainant has unreasonably prevented an order under section 71 above from being complied with, it shall, without prejudice to the generality of section 76(4) below, take that conduct into account as a failure on the part of the complainant to mitigate his loss.

• (7) For the purposes of Part II of Schedule 4 as it applies for the calculation of a week's pay for the purpose of subsection (2) (b) above, the calculation date where the dismissal was with notice is the date on which the notice was given and in any other case the effective date of termination.

• (8) Notwithstanding anything in the said Part II, the amount of a week's pay for the purpose of calculating an additional award under subsection (2) (b) above shall not exceed £80,

Compensation for unfair dismissal

73

Where a tribunal makes an award of compensation for unfair dismissal under section 72(2)(a) or (5) above, the award shall consist of a basic award (calculated in accordance with sections 74 and 75 below) and a compensatory award (calculated in accordance with section 76 below).

Calculation of basic award

74

• (1) The amount of the basic award shall be the amount calculated in accordance with subsections (3) to (7) and sections 75(1) to (6) below, subject to the following provisions of this Act, namely—

• (a) subsection (2) below (which provides for an award of two weeks' pay in certain cases);

• (b) section 75(7) below (which provides for the amount of the award to be reduced where the employee contributed to the dismissal);

• (c) section 75(8) below (which provides for the amount of the award to be reduced where the employee received a payment in respect of redundancy); and

• (d) section 77 below (which prohibits double compensation where compensation in respect of the same matter is also awarded under the Sex Discrimination Act 1975).

• (2) In the following cases the amount of the basic award shall be two weeks' pay:—

• (a) where the tribunal finds that the reason or principal reason for the dismissal of the employee was that he was redundant and the employee—

• (i) by virtue of section 2(5) or (6) of the Redundancy Payments Act 1965 (unreasonable refusal or relinquishment of suitable alternative employment) is not, or if he were otherwise entitled would not be, entitled to a redundancy payment; or

• (ii) by virtue of the operation of section 3(3) of that Act (renewal of employment or re-engagement) is not treated as dismissed for the purposes of Part I of that Act;

• (b) where the amount calculated in accordance with subsections (3) to (7) and section 75(1) to (7) below is less than the amount of two weeks' pay.

• (3) The amount of the basic award shall be calculated by reference to the period, ending with the effective date of termination, during which the employee has been continuously employed, by starting at the end of that period and reckoning backwards the numbers of years of employment falling within that period, and allowing—

• (a) one and a half weeks' pay for each such year of employment which consists wholly of weeks in which the employee was not below the age of 41 ;

• (b) one week's pay for each such year of employment which consists wholly of weeks in which the employee was below the age of 41 and was not below the age of 22 ; and

• (c) half a week's pay for each such year of employment which consists wholly of weeks in which the employee was below the age of 22 and was not below the age of 18.

• (4) In ascertaining for the purpose of subsection (3) above the period for which an employee has been continuously employed, where the effective date of termination falls to be determined in accordance with paragraph 5(6) of Schedule 1 to the 1974 Act, a period falling within such an interval as is referred to in paragraph 30(1 A) of that Schedule (period of continuous employment) shall count as a period of employment notwithstanding that it does not count under Schedule 1 to the Contracts of Employment Act 1972 (computation of period of employment).

• (5) Where in reckoning the number of years of employment in accordance with subsection (3) above 20 years of employment have been reckoned no account shall be taken of any year of employment earlier than those 20 years.

• (6) Where in the case of an employee the effective date of termination is after the specified anniversary the amount of the basic award calculated in accordance with subsections (3) to (5) above shall be reduced by the appropriate fraction.

• (7) In subsection (6) above " the specified anniversary" in relation to a man means the 64th anniversary of the day of his birth, and in relation to a woman means the 59th anniversary of the day of her birth, and " the appropriate fraction " means the fraction of which—

• (a) the numerator is the number of whole months reckoned from the specified anniversary in the period beginning with that anniversary and ending with the effective date of termination; and

• (b) the denominator is 12.

Provisions supplementary to s. 74

75

• (1) For the purposes of Part II of Schedule 4 to this Act as it applies for the calculation of a week's pay for the purposes of section 74 above, the calculation date is, subject to subsection (3) below, the date on which notice would have been given by the employer had the conditions referred to in subsection (2) below been fulfilled (whether those conditions were in fact fulfilled or not).

• (2) Those conditions are that the contract was terminable by notice and was terminated by the employer giving such notice as is required to terminate that contract by section 1(1) of the Contracts of Employment Act 1972 (minimum period of notice), and that the notice expired on the effective date of termination.

• (3) Where by virtue of paragraph 5(6) of Schedule 1 to the 1974 Act a date is to be treated as the effective date of termination for the purposes of section 74(3) above which is later than the effective date of termination as defined by paragraph 5(5) of that Schedule, then, for the purposes of Part II of Schedule 4 to this Act as it applies for the calculation of a week's pay for the purpose of section 74 above, the calculation date is the effective date of termination as defined by the said paragraph 5(5).

• (4) Notwithstanding anything in the said Part II, the amount of a week's pay for the purpose of calculating a basic award shall not exceed £80.

• (5) The Secretary of State may, after a review under section 86 below, vary the limit referred to in subsection (4) above by order made in accordance with that section.

• (6) Without prejudice to the generality of the power to make transitional provision in an order under subsection (5) above, such an order may provide that it shall apply in the case of a dismissal in relation to which the effective date of termination for the purposes of this subsection (as defined by paragraph 5(6) of Schedule 1 to the 1974 Act) falls after the order comes into operation, notwithstanding that the effective date of termination for the purposes of other provisions of this Act or the 1974 Act (as defined by paragraph 5(5) of Schedule 1 to the 1974 Act) falls before the order comes into operation.

• (7) Where the tribunal finds that the dismissal was to any extent caused or contributed to by any action of the complainant it shall, except in a case where the dismissal was by reason of redundancy, reduce the amount of the basic award by such proportion as it considers just and equitable having regard to that finding.

• (8) The amount of the basic award shall be reduced or, as the case may be, be further reduced, by the amount of any redundancy payment awarded by the tribunal under the Redundancy Payments Act 1965 in respect of the same dismissal or of any payment made by the employer to the employee on the ground that the dismissal was by reason of redundancy, whether in pursuance of the said Act of 1965 or otherwise.

Calculation of compensatory award

76

• (1) Subject to paragraph 20 of Schedule 1 to the 1974 Act (limit on compensation) and to section 77 below, the amount of the compensatory award shall be such amount as the tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal in so far as that loss is attributable to action taken by the employer.

• (2) The said loss shall be taken to include—

• (a) any expenses reasonably incurred by the complainant in consequence of the dismissal, and

• (b) subject to subsection (3) below, loss of any benefit which he might reasonably be expected to have had but for the dismissal.

• (3) The said loss, in respect of any loss of any entitlement or potential entitlement to, or expectation of, a payment on account of dismissal by reason of redundancy, whether in pursuance of the Redundancy Payments Act 1965 or otherwise, shall include only the loss referable to the amount, if any, by which the amount of that payment would have exceeded the amount of a basic award (apart from any reduction under section 75(7) or (8) above) in respect of the same dismissal.

• (4) In ascertaining the said loss the tribunal shall apply the same rule concerning the duty of a person to mitigate his loss as applies to damages recoverable under the common law of England and Wales or of Scotland, as the case may be.

• (5) In determining for the purposes of subsection (1) above how far any loss sustained by the complainant was attributable to action taken by the employer no account shall be taken of any pressure which, by calling, organising, procuring or financing a strike or other industrial action, or threatening to do so, was exercised on the employer to dismiss the employee, and that question shall be determined as if no such pressure had been exercised.

• (6) Where the tribunal finds that the dismissal was to any extent caused or contributed to by any action of the complainant it shall reduce the amount of the compensatory award by such proportion as it considers just and equitable having regard to that finding.

• (7) If the amount of any payment made by the employer to the employee on the ground that the dismissal was by reason of redundancy, whether in pursuance of the Redundancy Payments Act 1965 or otherwise, exceeds the amount of the basic award which would be payable but for section 75(8) above that excess shall go to reduce the amount of the compensatory award.

Compensation for act which is both sex discrimination and unfair dismissal

77

• (1) Where compensation falls to be awarded in respect of any act both under the Sex Discrimination Act 1975 and under the provisions of this Act relating to unfair dismissal, an industrial tribunal shall not award compensation under that Act or this Act in respect of any loss or other matter which is or has been taken into account under the other Act by the tribunal or another industrial tribunal in awarding compensation on the same or another complaint in respect of that act.

• (2) Without prejudice to paragraph 20 of Schedule 1 to the 1974 Act (limit on compensation), whether as set out in Part III of Schedule 16 to this Act or as applied by section 65 of the Sex Discrimination Act 1975, in a case to which subsection (1) above applies the aggregate of the following amounts of compensation awarded by an industrial tribunal, that is to say—

• (a) any compensation awarded under the said Act of 1975 ; and

• (b) any compensation awarded under section 72(1) above or, as the case may be, which is calculated in accordance with section 76 above,

shall not exceed the limit for the time being imposed by the said paragraph 20.

Interim relief pending determination of complaint of unfair dismissal

78

• (1) An employee who presents a complaint to an industrial tribunal that he has been unfairly dismissed by his employer and that the reason for the dismissal (or, if more than one, the principal reason) was that the employee—

• (a) was, or proposed to become, a member of a particular independent trade union, or

• (b) had taken, or proposed to take, part at any appropriate time in the activities of a particular independent trade union of which he was or proposed to become a member;

may, subject to the following provisions of this section, apply to the tribunal for an order under the following provisions of this section.

• (2) An industrial tribunal shall not entertain an application under this section unless—

• (a) it is presented to the tribunal before the end of the period of seven days immediately following the effective date of termination (whether before, on or after that date); and

• (b) before the end of that period there is also so presented a certificate in writing signed by an authorised official of the independent trade union of which the employee was or had proposed to become a member stating that on the date of the dismissal the employee was or had proposed to become a member of the union and that there appear to be reasonable grounds for supposing that the reason for his dismissal (or, if more than one, the principal reason) was one alleged in the complaint.

• (3) An industrial tribunal shall determine an application under this section as soon as practicable after receiving the application and the relevant certificate, but shall, at least seven days before the date of the hearing, give the employer a copy of the application and certificate, together with notice of the date, time and place of the hearing.

• (4) An industrial tribunal shall not exercise any power it has of postponing the hearing in the case of an application under this section except where the tribunal is satisfied that special circumstances exist which justify it in doing so.

• (5) If on hearing an application under this section it appears to an industrial tribunal that it is likely that on determining the complaint to which the application relates the tribunal will find that the complainant was unfairly dismissed and that the reason for the dismissal or (if more than one, the principal reason) was a reason mentioned in subsection (1) above, the tribunal shall announce its findings and explain to both parties (if present) what powers the tribunal may exercise on an application under this section and in what circumstances it may exercise them, and shall ask the employer (if present) whether he is willing, pending the determination or settlement of the complaint—

• (a) to reinstate the employee, that is to say, to treat the employee in all respects as if he had not been dismissed ; or

• (b) if not, to re-engage him in another job on terms and conditions not less favourable than those which would have been applicable to him if he had not been dismissed.

• (6) In subsection (5) above "terms and conditions not less favourable than those which would have been applicable to him if he had not been dismissed " means, as regards seniority, pension rights and other similar rights, that the period prior to the dismissal shall be regarded as continuous with his employment following the dismissal.

• (7) If the employer states that he is willing to reinstate the employee, the tribunal shall make an order to that effect.

• (8) If the employer states that he is willing to re-engage the employee in another job and specifies the terms and conditions on which he is willing to do so, the tribunal shall ask the employee whether he is willing to accept the job on those terms and conditions, and—

• (a) if the employee is willing to accept the job on those terms and conditions, the tribunal shall make an order to that effect; and

• (b) if the employee is unwilling to accept the job on those terms and conditions, then, if the tribunal is of the opinion that the refusal is reasonable, the tribunal shall make an order for the continuation of his contract of employment, but otherwise the tribunal shall make no order under this section.

• (9) If on the hearing of an application under this section the employer fails to attend before the tribunal or he states that he is unwilling either to reinstate the employee or re-engage him as mentioned in subsection (5) above, the tribunal shall make an order for the continuation of the employee's contract of employment.

• (10) In this section—

• " appropriate time " has the same meaning as in section 53 above;

• " authorised official ", in relation to a trade union, means an official of the union authorised by the union to act for the purposes of this section ;

and any reference to the date of dismissal is a reference—

• (a) where the employee's contract of employment was terminated by notice (whether given by his employer or by him), to the date on which the employer's notice was given; and

• (b) in any other case, to the effective date of termination.

• (11) A document purporting to be an authorisation of an official by a trade union to act for the purposes of this section and to be signed on behalf of the union shall be taken to be such an authorisation unless the contrary is proved, and a document purporting to be a certificate signed by such an official shall be taken to be signed by him unless the contrary is proved.

Orders for continuation of contract of employment

79

• (1) An order for the continuation of a contract of employment under section 78 above shall be an order that the contract of employment, if it has been terminated, shall continue in force as if it had not been terminated and if not shall on its termination continue in force, in either case until the determination or settlement of the complaint and only for the purposes of pay or any other benefit derived from the employment, seniority, pension rights and other similar matters and for the purpose of determining for any purpose the period for which the employee has been continuously employed.

• (2) Where the tribunal makes any such order it shall specify in the order the amount which is to be paid by the employer to the employee by way of pay in respect of each normal pay period or part of any such period falling between the date of the dismissal and the determination or settlement of the complaint and, subject to subsection (5) below, the amount so specified shall be that which the employee could reasonably have been expected to earn during that period or part, and shall be paid, in the case of a payment for any such period falling wholly or partly after the order, on the normal pay day for that period and, in the case of a payment for any past period, within a time so specified.

• (3) If an amount is payable by way of pay in pursuance of any such order in respect only of part of a normal pay period the amount shall be calculated by reference to the whole period and be reduced proportionately.

• (4) Any payment made to an employee by an employer under his contract of employment, or by way of damages for breach of that contract, in respect of any normal pay period or part of any such period shall go towards discharging the employer's liability in respect of that period under subsection (2) above, and conversely any payment under subsection (2) above in respect of any period shall go towards discharging any liability of the employer under, or in respect of breach of, the contract of employment in respect of that period.

• (5) If an employee, on or after being dismissed by his employer, receives a lump sum which, or part of which, is in lieu of wages but is not referable to any normal pay period, the tribunal shall take the payment into account in determining the amount of pay to be payable in pursuance of any such order.

• (6) For the purposes of this section the amount which an employee could reasonably have been expected to earn, his normal pay period and the normal pay day for each such period shall be determined as if he had not been dismissed.

Supplementary provisions as to interim relief

80

• (1) At any time between the making of an order by an industrial tribunal under section 78 above and the determination or settlement of the complaint to which it relates, the employer or the employee may apply to the tribunal for the revocation or variation of the order on the ground of a relevant change of circumstances since the making of the order, and that section shall apply to the application as it applies to an application for an order under that section except that—

• (a) no certificate need be presented to the tribunal under subsection (2) (b), and no copy of the certificate need be given to the employer under subsection (3), of that section; and

• (b) in the case of an application by an employer, for the reference in the said subsection (3) to the employer there shall be substituted a reference to the employee.

• (2) If on the application of an employee an industrial tribunal is satisfied that the employer has not complied with the terms of an order for the reinstatement or re-engagement of the employee under section 78(7) or (8) above.—

• (a) the tribunal shall make an order for the continuation of the employee's contract of employment and section 79 above shall apply to an order under this subsection as it applies to an order for the continuation of a contract of employment under section 78 above; and

• (b) the tribunal shall also order the employer to pay the employee such compensation as the tribunal considers just and equitable in all the circumstances having regard to the infringement of the employee's right to be reinstated or re-engaged in pursuance of the order under section 78(7) or (8) above and to any loss suffered by the employee in consequence of the non-compliance.

• (3) If on the application of an employee an industrial tribunal is satisfied that the employer has not complied with the terms of an order for the continuation of a contract of employment, then—

• (a) if the non-compliance consists of a failure to pay an amount by way of pay specified in the order, the tribunal shall determine the amount of pay owed by the employer to the employee on the date of the determination, and, if on that date the tribunal also determines the employee's complaint that he has been unfairly dismissed by his employer, the tribunal shall specify that amount separately from any other sum awarded to the employee ; and

• (b) in any other case, the tribunal shall order the employer to pay the employee such compensation as the tribunal considers just and equitable in all the circumstances having regard to any loss suffered by the employee in consequence of the non-compliance.

• (4) An industrial tribunal hearing an application under section 78 above or this section may consist of a President of Industrial Tribunals, the chairman of the tribunal or a member of a panel of chairmen of such tribunals for the time being nominated by a President to hear such applications.

Itemised pay statement

Right to itemised pay statement

81

Every employee shall have the right to be given by his employer at or before the time at which any payment of wages or salary is made to him an itemised pay statement, in writing, containing the following particulars, that is to say.—

• (a) the gross amount of the wages or salary;

• (b) the amounts of any variable and, subject to section 82 below, any fixed deductions from that gross amount and the purposes for which they are made;

• (c) the net amount of wages or salary payable; and

• (d) where different parts of the net amount are paid in different ways, the amount and method of payment of each part-payment.

Standing statement of fixed deductions

82

• (1) A pay statement given in accordance with section 81 above need not contain separate particulars of a fixed deduction if it contains instead an aggregate amount of fixed deductions, including that deduction, and the employer has given to the employee, at or before the time at which that pay statement is given, a standing statement of fixed deductions, in writing, which contains the following particulars of each deduction comprised in that aggregate amount, that is to say.—

• (a) the amount of the deduction ;

• (b) the intervals at which the deduction is to be made ; and

• (c) the purpose for which it is made,

and which, in accordance with subsection (4) below, is effective at the date on which the pay statement is given.