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Compensation to Employees

15th May 1953, Page 58
15th May 1953
Page 58
Page 61
Page 58, 15th May 1953 — Compensation to Employees
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DENSION rights and matters relating to the compensation I of employees of the Commission who cease to be so employed as a result of the Commission ending operation of the existing road .haulage undertaking are the subject of Sections 27 and 28 of the Act.

Section 27 deals with pension rights already in existence, 11/4 and does little more than authorize the Minister to make regulations for providing or securing the continuance of those rights and to indicate certain broad lines of principle to which those regulations arc to conform. Thus, the Minister is to ensure that any persons in the employment of the Commission who are participants in a pension scheme and arc detrimentally affected as to pay or nature and terms of employment in consequence of the Act, are not similarly affected as regards their pensions [S. 27 (1)].

Where an employee obtains other employment in which he will have certain pension rights, the regulations may provide for a payment to his new employers administering his new pension scheme, so as to ensure that the rights which he will have under this new scheme are the equal of those he would have received under the old pension scheme. This payment by the Commission may be made either by them direct, or out of any pension fund administered by them. The regulations may empower the new employers to carry out the arrangements laid down, despite any existing statute, trust deed, or rules of any kind to the contrary [S. 27 (2)1.

I.Note that the payment envisaged will go to the new employers to be administered by them. The whole section is only "enabling," but it is quite clear that it is intended that those who find fresh jobswith the Commission, or those who go to other jobs where a pension scheme exists, or those who go to other jobs where no pension scheme exists, will not suffer.]

The regulations may also contain provisions for the disposing of appeals from any decision in relation to pension rights which will be referred to a referee or board of referees appointed by the Minister of Labour and National Service [S. 27 (4)].

Section 28 enables the Minister to make regulations for payment by the Commission to their officers or servants of compensation for loss of employment or loss or diminution of pay or salary or to those whose position is worsened by the provisions of the Act. He may make different regulations for different classes of employee. As in the previous section dealing with pension rights, provision may be made for determining appeals by reference to a referee or board of referees [S. 28(3)].

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