§ Lord Sherfieldasked Her Majesty's Government:
Whether, on the restructuring of the National Institute of Research in Dairying (NIRD) the staff, who had retained the option to retire at 65, have had their contracts prematurely terminated on terms less favourable than those they would have obtained if the contracts had run their full course, and, if so, whether, since the Government departments concerned have refused to allow the Agriculture and Food Research Council (AFRC) to pay compensation in respect of the shortfall, these contracts have not been honoured.
§ The Earl of SwintonI understand that termination of the contracts of the staff concerned by notice was allowed for in their conditions of service. Now that such termination has taken place they are redundant and are receiving the compensation to which they are entitled under the AFRC's superannuation scheme. That compensation will at least equal, and will in most cases significantly exceed, their statutory entitlement under employment protection legislation. The position therefore appears to be within the law and within the terms of contracts, but that would in the final analysis be a matter for an industrial tribunal or the courts to decide.