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(2) The regulations may—

(a) make provision which applies only in specified classes of case;

(b) make different provision for different circumstances;

(c) include supplementary, incidental and transitional provision.

(3) In this section—

  • “collective agreement” has the meaning given by section 178(1) of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992; and

  • “employer” and “worker” have the same meaning as in section 296 of that Act.

(4) The payment of higher wages or higher rates of pay or overtime or the payment of any signing on or other bonuses or the provision of other benefits having a monetary value to other workers employed by the same employer shall not constitute a detriment to any worker not receiving the same or similar payments or benefits within the meaning of subsection (1)(a) of this section so long as—

(a) there is no inhibition in the contract of employment of the worker receiving the same from being the member of any trade union, and

(b) the said payments of higher wages or rates of pay or overtime or bonuses or the provision of other benefits are in accordance with the terms of a contract of employment and reasonably relate to services provided by the worker under that contract.

18 Agreement to exclude dismissal rights

(1) In section 197 of the [1996 c. 18.] Employment Rights Act 1996 (fixed-term contracts) subsections (1) and (2) (agreement to exclude unfair dismissal provisions) shall be omitted; and subsections (2) to (5) below shall have effect in consequence.

(2) In sections 44(4), 46(2), 47(2), 47A(2) and 47B(2) of that Act—

(a) the words from the beginning to “the dismissal,” shall be omitted, and

(b) for “that Part” there shall be substituted “Part X”.

(3) In section 45A(4) of that Act the words from “, unless” to the end shall be omitted.

(4) In section 23 of the [1998 c. 39.] National Minimum Wage Act 1998, for subsection (4) there shall be substituted—

(4) This section does not apply where the detriment in question amounts to dismissal within the meaning of—

(a) Part X of the Employment Rights Act 1996 (unfair dismissal), or

(b) Part XI of the Employment Rights (Northern Ireland) Order 1996 (corresponding provision for Northern Ireland),

except where in relation to Northern Ireland the person in question is dismissed in circumstances in which, by virtue of Article 240 of that Order (fixed term contracts), Part XI does not apply to the dismissal.

(5) In paragraph 1 of Schedule 3 to the [1999 c. 10.] Tax Credits Act 1999, for sub-paragraph (3) there shall be substituted—

(3) This paragraph does not apply where the detriment in question amounts to dismissal within the meaning of—

(a) Part X of the Employment Rights Act 1996 (unfair dismissal), or

(b) Part XI of the Employment Rights (Northern Ireland) Order 1996 (corresponding provision for Northern Ireland),

except where in relation to Northern Ireland the employee is dismissed in circumstances in which, by virtue of Article 240 of that Order (fixed term contracts), Part XI does not apply to the dismissal.

(6) Section 197(1) of the [1996 c. 18.] Employment Rights Act 1996 does not prevent Part X of that Act from applying to a dismissal which is regarded as unfair by virtue of section 99 or 104 of that Act (pregnancy and childbirth, and assertion of statutory right).

19 Part-time work: discrimination

(1) The Secretary of State shall make regulations for the purpose of securing that persons in part-time employment are treated, for such purposes and to such extent as the regulations may specify, no less favourably than persons in full-time employment.

(2) The regulations may—

(a) specify classes of person who are to be taken to be, or not to be, in part-time employment;

(b) specify classes of person who are to be taken to be, or not to be, in full-time employment;

(c) specify circumstances in which persons in part-time employment are to be taken to be, or not to be, treated less favourably than persons in full-time employment;

(d) make provision which has effect in relation to persons in part-time employment generally or provision which has effect only in relation to specified classes of persons in part-time employment.

(3) The regulations may—

(a) confer jurisdiction (including exclusive jurisdiction) on employment tribunals and on the Employment Appeal Tribunal;

(b) create criminal offences in relation to specified acts or omissions by an employer, by an organisation of employers, by an organisation of workers or by an organisation existing for the purposes of a profession or trade carried on by the organisation’s members;

(c) in specified cases or circumstances, extend liability for a criminal offence created under paragraph (b) to a person who aids the commission of the offence or to a person who is an agent, principal, employee, employer or officer of a person who commits the offence;

(d) provide for specified obligations or offences not to apply in specified circumstances;

(e) make provision about notices or information to be given, evidence to be produced and other procedures to be followed;

(f) amend, apply with or without modifications, or make provision similar to any provision of the [1996 c. 18.] Employment Rights Act 1996 (including, in particular, Parts V, X and XIII) or the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992;

(g) provide for the provisions of specified agreements to have effect in place of provisions of the regulations to such extent and in such circumstances as may be specified;

(h) include supplemental, incidental, consequential and transitional provision, including provision amending an enactment;

(i) make different provision for different cases or circumstances.

(4) Without prejudice to the generality of this section the regulations may make any provision which appears to the Secretary of State to be necessary or expedient—

(a) for the purpose of implementing Council Directive 97/81/EC on the framework agreement on part-time work in its application to terms and conditions of employment;

(b) for the purpose of dealing with any matter arising out of or related to the United Kingdom’s obligations under that Directive;

(c) for the purpose of any matter dealt with by the framework agreement or for the purpose of applying the provisions of the framework agreement to any matter relating to part-time workers.

(5) Regulations under this section which create an offence—

(a) shall provide for it to be triable summarily only, and

(b) may not provide for it to be punishable by imprisonment or by a fine in excess of level 5 on the standard scale.

20 Part-time work: code of practice

(1) The Secretary of State may issue codes of practice containing guidance for the purpose of—

(a) eliminating discrimination in the field of employment against part-time workers;

(b) facilitating the development of opportunities for part-time work;

(c) facilitating the flexible organisation of working time taking into account the needs of workers and employers;

(d) any matter dealt with in the framework agreement on part-time work annexed to Council Directive 97/81/EC.

(2) The Secretary of State may revise a code and issue the whole or part of the revised code.

(3) A person’s failure to observe a provision of a code does not make him liable to any proceedings.

(4) A code—

(a) is admissible in evidence in proceedings before an employment tribunal, and

(b) shall be taken into account by an employment tribunal in any case in which it appears to the tribunal to be relevant.

21 Code of practice: supplemental

(1) Before issuing or revising a code of practice under section 20 the Secretary of State shall consult such persons as he considers appropriate.

(2) Before issuing a code the Secretary of State shall—

(a) publish a draft code,

(b) consider any representations made to him about the draft,

(c) if he thinks it appropriate, modify the draft in the light of any representations made to him.

(3) If, having followed the procedure under subsection (2), the Secretary of State decides to issue a code, he shall lay a draft code before each House of Parliament.

(4) If the draft code is approved by resolution of each House of Parliament, the Secretary of State shall issue the code in the form of the draft.

(5) In this section and section 20(3) and (4)—

(a) a reference to a code includes a reference to a revised code,

(b) a reference to a draft code includes a reference to a draft revision, and

(c) a reference to issuing a code includes a reference to issuing part of a revised code.

22 National minimum wage: communities

The following shall be inserted after section 44 of the [1998 c. 39.] National Minimum Wage Act 1998 (exclusions: voluntary workers)—

44A Religious and other communities: resident workers

(1) A residential member of a community to which this section applies does not qualify for the national minimum wage in respect of employment by the community.

(2) Subject to subsection (3), this section applies to a community if—

(a) it is a charity or is established by a charity,

(b) a purpose of the community is to practise or advance a belief of a religious or similar nature, and

(c) all or some of its members live together for that purpose.

(3) This section does not apply to a community which—

(a) is an independent school, or

(b) provides a course of further or higher education.

(4) The residential members of a community are those who live together as mentioned in subsection (2)(c).

(5) In this section—

(a) “charity” has the same meaning as in section 44, and

(b) “independent school” has the same meaning as in section 463 of the [1996 c. 56.] Education Act 1996 (in England and Wales), section 135 of the [1980 c. 44.] Education (Scotland) Act 1980 (in Scotland) and Article 2 of the [S.I. 1986/594 (N.I. 3).] Education and Libraries (Northern Ireland) Order 1986 (in Northern Ireland).

(6) In this section “course of further or higher education” means—

(a) in England and Wales, a course of a description referred to in Schedule 6 to the [1988 c. 40.] Education Reform Act 1988 or Schedule 2 to the [1992 c. 13.] Further and Higher Education Act 1992;

(b) in Scotland, a course or programme of a description mentioned in or falling within section 6(1) or 38 of the [1992 c. 37.] Further and Higher Education (Scotland) Act 1992;

(c) in Northern Ireland, a course of a description referred to in Schedule 1 to the [S.I. 1997/1772 (N.I. 15).] Further Education (Northern Ireland) Order 1997 or a course providing further education within the meaning of Article 3 of that Order.

23 Power to confer rights on individuals

(1) This section applies to any right conferred on an individual against an employer (however defined) under or by virtue of any of the following—

(a) the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992;

(b) the [1996 c. 18.] Employment Rights Act 1996;

(c) this Act;

(d) any instrument made under section 2(2) of the [1972 c. 68.] European Communities Act 1972.

(2) The Secretary of State may by order make provision which has the effect of conferring any such right on individuals who are of a specified description.

(3) The reference in subsection (2) to individuals includes a reference to individuals expressly excluded from exercising the right.

(4) An order under this section may—

(a) provide that individuals are to be treated as parties to workers' contracts or contracts of employment;

(b) make provision as to who are to be regarded as the employers of individuals;

(c) make provision which has the effect of modifying the operation of any right as conferred on individuals by the order;

(d) include such consequential, incidental or supplementary provisions as the Secretary of State thinks fit.

(5) An order under this section may make provision in such way as the Secretary of State thinks fit, whether by amending Acts or instruments or otherwise.

(6) Section 209(7) of the [1996 c. 18.] Employment Rights Act 1996 (which is superseded by this section) shall be omitted.

(7) Any order made or having effect as if made under section 209(7), so far as effective immediately before the commencement of this section, shall have effect as if made under this section.

CAC, ACAS, Commissioners and Certification Officer

24 CAC: members

In section 260 of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992 (members of the Committee) these subsections shall be substituted for subsections (1) to (3)—

(1) The Central Arbitration Committee shall consist of members appointed by the Secretary of State.

(2) The Secretary of State shall appoint a member as chairman, and may appoint a member as deputy chairman or members as deputy chairmen.

(3) The Secretary of State may appoint as members only persons experienced in industrial relations, and they shall include some persons whose experience is as representatives of employers and some whose experience is as representatives of workers.

(3A) Before making an appointment under subsection (1) or (2) the Secretary of State shall consult ACAS and may consult other persons.

25 CAC: proceedings

(1) The Trade Union and Labour Relations (Consolidation) Act 1992 shall be amended as follows.

(2) In section 263 (proceedings of the Committee) this subsection shall be inserted after subsection (6)—

(7) In relation to the discharge of the Committee’s functions under Schedule A1—

(a) section 263A and subsection (6) above shall apply, and

(b) subsections (1) to (5) above shall not apply.

(3) This section shall be inserted after section 263—

263A Proceedings of the Committee under Schedule A1

(1) For the purpose of discharging its functions under Schedule A1 in any particular case, the Central Arbitration Committee shall consist of a panel established under this section.

(2) The chairman of the Committee shall establish a panel or panels, and a panel shall consist of these three persons appointed by him—

(a) the chairman or a deputy chairman of the Committee, who shall be chairman of the panel;

(b) a member of the Committee whose experience is as a representative of employers;

(c) a member of the Committee whose experience is as a representative of workers.

(3) The chairman of the Committee shall decide which panel is to deal with a particular case.

(4) A panel may at the discretion of its chairman sit in private where it appears expedient to do so.

(5) If—

(a) a panel cannot reach a unanimous decision on a question arising before it, and

(b) a majority of the panel have the same opinion,

the question shall be decided according to that opinion.

(6) If—

(a) a panel cannot reach a unanimous decision on a question arising before it, and

(b) a majority of the panel do not have the same opinion,

the chairman of the panel shall decide the question acting with the full powers of an umpire or, in Scotland, an oversman.

(7) Subject to the above provisions, a panel shall determine its own procedure.

(4) In section 264 (awards of the Committee)—

(a) in subsection (1) after “award” there shall be inserted “, or in any decision or declaration of the Committee under Schedule A1,”;

(b) in subsection (2) after “of the Committee,” there shall be inserted “or of a decision or declaration of the Committee under Schedule A1,”.

26 ACAS: general duty

In section 209 of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992 (ACAS' general duty) the words from “, in particular” to the end shall be omitted.

27 ACAS: reports

(1) In section 253(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (ACAS: annual report) for “calendar year” there shall be substituted “financial year”.

(2) In section 265(1) of that Act (ACAS: report about CAC) for “calendar year” there shall be substituted “financial year”.

28 Abolition of Commissioners

(1) These offices shall cease to exist—

(a) the office of Commissioner for the Rights of Trade Union Members;

(b) the office of Commissioner for Protection Against Unlawful Industrial Action.

(2) In the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992 these provisions shall cease to have effect—

(a) Chapter VIII of Part I (provision by Commissioner for the Rights of Trade Union Members of assistance in relation to certain proceedings);

(b) sections 235B and 235C (provision of assistance by Commissioner for Protection Against Unlawful Industrial Action of assistance in relation to certain proceedings);

(c) section 266 (and the heading immediately preceding it) and sections 267 to 271 (Commissioners' appointment, remuneration, staff, reports, accounts, etc.).

(3) In section 32A of that Act (statement to members of union following annual return) in the third paragraph of subsection (6)(a) (application for assistance from Commissioner for the Rights of Trade Union Members) for the words from “may” to “case,” there shall be substituted “should”.

29 The Certification Officer

Schedule 6 shall have effect.

Miscellaneous

30 Partnerships at work

(1) The Secretary of State may spend money or provide money to other persons for the purpose of encouraging and helping employers (or their representatives) and employees (or their representatives) to improve the way they work together.

(2) Money may be provided in such way as the Secretary of State thinks fit (whether as grants or otherwise) and on such terms as he thinks fit (whether as to repayment or otherwise).

31 Employment agencies

Schedule 7 shall have effect.

32 Employment rights: employment outside Great Britain

(1) In section 285(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (employment outside Great Britain) for “Chapter II (procedure for handling redundancies)” there shall be substituted “sections 193 and 194 (duty to notify Secretary of State of certain redundancies)”.

(2) After section 287(3) of that Act (offshore employment) there shall be inserted—

(3A) An Order in Council under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament..

(3) Section 196 of the [1996 c. 18.] Employment Rights Act 1996 (employment outside Great Britain) shall cease to have effect; and in section 5(1) for “sections 196 and” there shall be substituted “section”.

(4) After section 199(6) of that Act (mariners) there shall be inserted—

(7) The provisions mentioned in subsection (8) apply to employment on board a ship registered in the register maintained under section 8 of the Merchant Shipping Act 1995 if and only if—

(a) the ship’s entry in the register specifies a port in Great Britain as the port to which the vessel is to be treated as belonging,

(b) under his contract of employment the person employed does not work wholly outside Great Britain, and

(c) the person employed is ordinarily resident in Great Britain.

(8) The provisions are—

(a) sections 8 to 10,

(b) Parts II, III and V,

(c) Part VI, apart from sections 58 to 60,

(d) Parts VII and VIII,

(e) sections 92 and 93, and

(f) Part X.

33 Unfair dismissal: special and additional awards

(1) The following provisions (which require, or relate to, the making of special awards by employment tribunals in unfair dismissal cases) shall cease to have effect—

(a) sections 117(4)(b), 118(2) and (3) and 125 of the [1996 c. 18.] Employment Rights Act 1996 (and the word “or” before section 117(4)(b));

(b) sections 157 and 158 of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992.

(2) In section 117(3)(b) of the Employment Rights Act 1996 (amount of additional award) for “the appropriate amount” there shall be substituted “an amount not less than twenty-six nor more than fifty-two weeks' pay”; and subsections (5) and (6) of section 117 shall cease to have effect.

(3) In section 14 of the [1998 c. 8.] Employment Rights (Dispute Resolution) Act 1998—

(a) subsection (1) shall cease to have effect, and

(b) in subsection (2) for “that Act” substitute “the Employment Rights Act 1996”.

34 Indexation of amounts, &c

(1) This section applies to the sums specified in the following provisions—

(a) section 31(1) of the Employment Rights Act 1996 (guarantee payments: limits);

(b) section 120(1) of that Act (unfair dismissal: minimum amount of basic award);

(c) section 124(1) of that Act (unfair dismissal: limit of compensatory award);

(d) section 186(1)(a) and (b) of that Act (employee’s rights on insolvency of employer: maximum amount payable);

(e) section 227(1) of that Act (maximum amount of a week’s pay for purposes of certain calculations);

(f) section 156(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (unfair dismissal: minimum basic award);

(g) section 176(6) of that Act (right to membership of trade union: remedies).

(2) If the retail prices index for September of a year is higher or lower than the index for the previous September, the Secretary of State shall as soon as practicable make an order in relation to each sum mentioned in subsection (1)—

(a) increasing each sum, if the new index is higher, or

(b) decreasing each sum, if the new index is lower,

by the same percentage as the amount of the increase or decrease of the index.

(3) In making the calculation required by subsection (2) the Secretary of State shall—

(a) in the case of the sum mentioned in subsection (1)(a), round the result up to the nearest 10 pence,

(b) in the case of the sums mentioned in subsection (1)(b), (c), (f) and (g), round the result up to the nearest £100, and

(c) in the case of the sums mentioned in subsection (1)(d) and (e), round the result up to the nearest £10.

(4) For the sum specified in section 124(1) of the [1996 c. 18.] Employment Rights Act 1996 (unfair dismissal: limit of compensatory award) there shall be substituted the sum of £50,000 (subject to subsection (2) above).

(5) In this section “the retail prices index” means—

(a) the general index of retail prices (for all items) published by the Office for National Statistics, or

(b) where that index is not published for a month, any substituted index or figures published by that Office.

(6) An order under this section—

(a) shall be made by statutory instrument,

(b) may include transitional provision, and

(c) shall be laid before Parliament after being made.

35 Guarantee payments

For section 31(7) of the Employment Rights Act 1996 (guarantee payments: limits) there shall be substituted—

(7) The Secretary of State may by order vary—

(a) the length of the period specified in subsection (2);

(b) a limit specified in subsection (3) or (4).

36 Sections 33 to 35: consequential

(1) The following provisions (which confer power to increase sums) shall cease to have effect—

(a) sections 120(2), 124(2), 186(2) and 227(2) to (4) of the Employment Rights Act 1996;

(b) sections 159 and 176(7) and (8) of the [1992 c. 52.] Trade Union and Labour Relations (Consolidation) Act 1992.

(2) Section 208 of the Employment Rights Act 1996 (review of limits) shall cease to have effect.

(3) An increase effected, before section 34 comes into force, by virtue of a provision repealed by this section shall continue to have effect notwithstanding this section (but subject to section 34(2) and (4)).

37 Compensatory award etc: removal of limit in certain cases

(1) After section 124(1) of the Employment Rights Act 1996 (limit of compensatory award etc) there shall be inserted—

(1A) Subsection (1) shall not apply to compensation awarded, or a compensatory award made, to a person in a case where he is regarded as unfairly dismissed by virtue of section 100, 103A, 105(3) or 105(6A).

(2) Section 127B of that Act (power to specify method of calculation of compensation where dismissal a result of protected disclosure) shall cease to have effect.

38 Transfer of undertakings

(1) This section applies where regulations under section 2(2) of the [1972 c. 68.] European Communities Act 1972 (general implementation of Treaties) make provision for the purpose of implementing, or for a purpose concerning, a Community obligation of the United Kingdom which relates to the treatment of employees on the transfer of an undertaking or business or part of an undertaking or business.

(2) The Secretary of State may by regulations make the same or similar provision in relation to the treatment of employees in circumstances other than those to which the Community obligation applies (including circumstances in which there is no transfer, or no transfer to which the Community obligation applies).

(3) Regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.