Member

80: Clause 26, page 47, line 2, at end insert— “(4A) In the case of an employer that is a local authority, subsection (1) does not apply in relation to an employee if—(a) at the time of the dismissal, a relevant intervention direction has effect in relation to the authority,(b) the relevant intervention direction—(i) specifies that the reason, or one of the reasons, for the giving of the direction is that the authority is undergoing financial difficulties, and(ii) contains provision relating to the financial management or financial governance of the authority, and(c) the authority shows that—(i) the reason for the restricted variation was to eliminate or significantly reduce, or significantly mitigate the effect of, any of the financial difficulties referred to in paragraph (b)(i), and(ii) in all the circumstances the authority could not reasonably have avoided the need to make the restricted variation.(4B) In determining whether—(a) in the case of a public sector employer (other than a local authority), subsection (4)(b) is met, or(b) in the case of a local authority, subsection (4A)(c)(ii) is met,an employment tribunal must apply the same principles as would be applied by a court on an application for judicial review.”Member’s explanatory statement This amendment provides that the exception for employers undergoing financial difficulties applies to a local authority only if a “relevant intervention direction” has effect in relation to it. It also makes provision about how an employment tribunal should decide whether a public sector employer (including a local authority) could not reasonably have avoided the need to make the variation.