HC Deb 21 July 1965 vol 716 cc1680-2

(1) The provisions of this section shall have effect where—

  1. (a) a redundancy payment is paid to an employee, whether in respect of dismissal or in respect of lay-off or short-time;
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  2. (b) the contract of employment under which he was employed (in this section referred to as "the previous contract") is renewed, whether by the same or another employer, or he is re-engaged under a new contract of employment, whether by the same or another employer; and
  3. (c) the circumstances of the renewal or re-engagement are such that, in determining for the purposes of section 1(1) of, or Schedule 1 to, this Act whether at any subsequent time he has been continuously employed for the requisite period, or for what period he has been continuously employed, the continuity of his period of employment would, apart from this section, be treated as not having been broken by the termination of the previous contract and the renewal or re-engagement.

(2) Where the conditions mentioned in the preceding subsection are fulfilled, then in determining, for the purposes of section 1(1) of, or Schedule 1 to, this Act, whether at any subsequent time he has been continuously employed for the requisite period, or for what period he has been continuously employed, the continuity of the period of employment shall be treated as having been broken at the date which was the relevant date in relation to the redundancy payment mentioned in paragraph (a) of the preceding subsection, and accordingly no account shall be taken of any time before that date.

(3) For the purposes of this section a redundancy payment shall be treated as having been paid if—

  1. (a) the whole of the payment has been paid to the employee by the employer, or, in a case where a tribunal has determined that the employer is liable to pay part (but not the whole) of the redundancy payment, that part of the redundancy payment has been paid in full to the employee by the employer, or
  2. (b) the Minister has paid a sum to the employee in respect of the redundancy payment under section 29 of this Act.—[Mr. Thornton.]

Brought up, and read the First time.

Mr. Thornton

I beg to move, That the Clause be read a Second time.

I think that it would be for the convenience of the House to take with the new Clause the related Amendments, Nos. 23, 88, 104 and 110.

The effect of the new Clause can be described very simply. It will ensure that, once a person has been paid a redundancy payment, he goes back to square one for the purposes of building up his rights. I hope hon. Members will agree that it is clearly fair and reasonable. It has always been the Government's intention, and I think the only point that needs explanation is why such a provision is necessary at all.

The related Amendments to Clause 8 and Schedules 1 and 7 are purely technical, consequential changes.

Mr. Godber

We are grateful to the Parliamentary Secretary for his explanation of the Clause. It seems straightforward and it clarifies a position which was obscure. It appears to be the right way in which to do it. I agree with him entirely that this was always the intention, but it is now clarified and it is important that it should be. It was one of the points I was seeking to make in response to the hon. Member for Oldham, West (Mr. Hale), and I am sorry that he is no longer present.

Once a person has received a redundancy payment and goes back to square one, he is less protected for the next year or two, and therefore one does not want to facilitate a man getting the payment too easily if he is not in need of it. It is a valuable safeguard for him if he comes up against difficulties in future. It is right that he should understand exactly where he is placed, and the Clause makes it easier for everyone to understand it, not only clarifying the position but tidying it up. It is exactly as it should be. I therefore welcome the new Clause.

Question put and agreed to.

Clause read a Second time, and added to the Bill.