Employment and Training Act 1981

Amendments of Industrial Training Act 1964

1Industrial training orders.

(1)In section 1 of the [1964 c. 16.] Industrial Training Act 1964 (power of Minister to make industrial training orders establishing industrial training boards)—

(a)in subsection (1) for the words " if the Manpower Services Commission submits to him proposals that he should do so" there shall be substituted the words " subject to the provisions of this section ";

(b)for subsection (4) there shall be substituted—

“(4)The Minister shall not make an industrial training order unless—

(a)the Commission has submitted proposals to him for an order together with a statement of the views of the persons consulted by it in accordance with subsection (4A) of this section, or

(b)he has consulted the Commission and the Commission has given him such a statement (whether or not the Commission has also given him its own views).

(4A)Where the Commission proposes to submit to the Minister proposals for the making of an industrial training order or is consulted by the Minister in connection with the making of such an order, the Commission shall consult—

(a)such organisations or associations of organisations appearing to the Commission to be representative of substantial numbers of employers or employees and such bodies established for the purpose of carrying on under national ownership any industry or part of an industry or undertaking as the Commission thinks fit; and

(b)such other organisations, associations or bodies (if any) as the Minister may direct.

(4B)Any consultations required to be carried out under this section may be in such form and in respect of such matters (whether or not related to the making of a specific order) as the Minister, or, in a case where the consultations are carried out by it, the Commission thinks fit.”.

(2)For subsections (1) and (2) of section 9 of the said Act of 1964 there shall be substituted—

“(1)The Minister may by order—

(a)amend an industrial training order; or

(b)revoke such an order;

and the provisions of subsections (4) to (4B) of section 1 of this Act shall apply to the making of an order under this subsection as they apply to the making of an industrial training order.”

(3)Where any consultations are required by virtue of this section and the Secretary of State is satisfied that adequate consultations have taken place before the coming into force of this section, no further consultations shall be required.

2Industrial training levies.

(1)In subsection (1) of section 4 of the [1964 c. 16.] Industrial Training Act 1964 (power of industrial training boards to impose levy on employers for the purpose of encouraging adequate training in the industry) for the words " encouraging adequate training in the industry " there shall be substituted the words " raising money towards meeting its expenses ".

(2)Any sum paid to an industrial training board in pursuance of a levy imposed under an order made before the coming into force of subsection (1) above may be used by the board to meet any of its expenses.

3Exemption from levies.

(1)For subsections (1) and (2) of section 4A of the [1964 c. 16.] Industrial Training Act 1964 (proposals for exemption by certificates from levies) there shall be substituted—

“(1)An industrial training board may from time to time, and shall whenever directed to do so by the Commission and, subject to subsection (1A) below, always at or before the time when it submits proposals in respect of a levy under section 7 of this Act, submit to the Commission for its approval proposals for the issue of certificates (in this Act referred to as " exemption certificates") which while in force are to exempt from relevant levy employers in the industry who—

(a)make arrangements for the training, or the training and further education associated with training, of persons employed or to be employed in the industry; and

(b)satisfy the board by reference to criteria specified in the proposals that the arrangements are adequate and are to a material extent being implemented ;

and in this subsection " relevant levy " means levy which, apart from any exemption certificate, is payable to the board in question by virtue of this Act by employers in the industry, other than levy which the levy order authorising it provides is to be payable notwithstanding any exemption certificate.

(1A)An industrial training board shall not be obliged to submit proposals under subsection (1) above for the issue of exemption certificates to any category of employer at or before the time when it submits proposals in respect of a levy on those employers which include—

(a)proposals that no exemption certificates will be issued by the board to employers in that category ; or

(b)proposals by virtue of which the levy payable by any employer in that category (disregarding any exemptions) will not exceed 0-2 per cent. of the aggregate of the emoluments and payments intended to be disbursed as emoluments which are paid and payable by him to or in respect of persons employed in the industry in respect of the period specified in proposals as the period which is relevant for the purposes of paragraph (d)(i) of section 4(2A) of this Act; or

(c)proposals within section 7(1B)(a) below by virtue of which any exemption certificates issued to those employers will not exempt them from any of the levy.

(1B)The criteria for arrangements made by employers which by virtue of paragraph (b) of subsection (1) of this section are to be specified in proposals submitted under that subsection must relate to the quality or amount of training, or training and education, provided for by the arrangements, but need not relate solely to the needs of establishments of the employers; and the proposals may specify different criteria as respects arrangements made by different categories of employers.

(1C)The Minister and the Commission may issue guidance concerning the criteria which by virtue of paragraph (b) of subsection (1) above are to be specified in proposals submitted under that subsection.

(2)If the Commission approves proposals submitted to it by a board under subsection (1) of this section the Commission shall submit them to the Minister and where the board is informed by the Commission that the Commission and the Minister approve the proposals, the board shall arrange for them to be published as soon as practicable in a manner approved by the Commission.”

(2)In subsection (1) of section 4B of that Act (certificates of exemption from levy)—

(a)for the words from " persons needed" to " establishment of his" there shall be substituted the words " persons employed or to be employed in the industry "; and

(b)for the words " the establishment" in the first place where they occur there shall be substituted the words " any establishment of his ".

(3)In subsection (2)(a) of that section for the words from " persons " to " relates " there shall be substituted the words " persons employed or to be employed in the industry ".

(4)For subsection (1B) of section 7 of that Act (proposals by board for securing that exemption certificates do not exempt employers from the whole or a portion of the levy) there shall be substituted—

“(1B)Subject to subsection (1BBB) below, any proposals made by a board in pursuance of paragraph (b) of subsection (1) of this section may include—

(a)proposals for securing that exemption certificates issued by the board shall not exempt from the whole or a portion of the levy the employers or some of the employers in the industry; or

(b)proposals that no exemption certificates shall be issued by the board,

and, if such proposals are included shall also include such information or further information as the Commission directs the board to furnish, and any additional information which the board considers appropriate, for the purpose of assisting the Minister to decide whether a levy order made in pursuance of the proposals would fall within paragraph (c) of section 4(2A) of this Act and, if so, whether sub-paragraph (i) of that paragraph would apply.

(1BB)Different proposals may be made in pursuance of subsection (1B) of this section as respects different categories of employers and different portions of the levy.

(1BBB)The Commission shall not approve proposals made in pursuance of subsection (1B) above if as a result of those proposals—

(a)in a case within paragraph (a) of that subsection, the amount of the levy from which an exemption certificate will not exempt any person will exceed 0-2 per cent. of the relevant emoluments within the meaning of this Act; or

(b)in a case within paragraph (b) of that subsection, the amount of the levy payable by any person will exceed that percentage of the relevant emoluments within the meaning of section 4(2A) of this Act,

unless it is of the opinion that the proposals are necessary to encourage adequate training in the industry.”.

(5)In section 4 of that Act—

(a)for paragraph (c) of subsection (2A) there shall be substituted—

“(c)he is satisfied that such of the proposals under the said section 7 as were made in pursuance of subsection (1B) of that section and are within subsection (1BBB) of that section are necessary to encourage adequate training in the industry and either—

(i)the relevant organisations consider, after taking reasonable steps to ascertain the views of the persons they represent that the proposals are necessary to encourage adequate training in the industry, or

(ii)the order will be made less than two years after the making of another levy order (" the former order ") giving effect to proposals made by the board in respect of which he was satisfied as mentioned in sub-paragraph (i) of this paragraph and either—

(a)the proposals to which the former order gave effect were that no exemption certificates should be issued or that the exemption certificates to be issued should not exempt employers from any of the levy, or

(b)the proposals to which the former order gave effect were that exemption certificates should not exempt employers from a portion of the levy and the percentage of the relevant emoluments from which under the current proposals the exemption certificates will not exempt any person will not exceed the percentage of relevant emoluments from which he was not exempted under the former order, or

(iii)neither paragraph (i) nor (ii) above applies but the proposals are considered by him to be appropriate in the circumstances ;”.

(b)in sub-paragraph (i) of paragraph (d) of that subsection for the words from " the aggregate " to the end of the sub-paragraph there shall be substituted the words " the relevant emoluments, or ";

(c)after subsection (2A) there shall be inserted—

“(2B)In subsection (2A) above—

• " the relevant emoluments" means the aggregate of the emoluments and payments intended to be disbursed as emoluments which are paid and payable by the person in question to or in respect of persons employed in the industry in respect of the period specified in the proposals as the period which is relevant for the purposes of that subsection, and

• " the relevant organisations" means organisations appearing to the Minister to represent more than half of the persons who he considers are likely to be liable to make payments by way of levy in consequence of the proposals and organisations appearing to him to represent persons who he considers are together likely to be liable to make payments by way of levy in consequence of the proposals which amount to more than half the aggregate amount of those payments”; and

(d)in subsections (2A) and (4) for the words " falling within paragraph (d)(ii)" there shall be substituted the words " falling within paragraph (c)(iii) or (d)(ii) ".

4Enterprise zones.

(1)No employer shall be liable to any levy imposed by an order made under section 4 or section 9(1)(b) of the [1964 c. 16.] Industrial Training Act 1964 in respect of any establishment situated wholly or mainly within an area designated as an. enterprise zone under Schedule 32 to the [1980 c. 65.] Local Government, Planning and Land Act 1980; and for the purposes of any order made under the said section 4 such an establishment shall be treated as if it were not carrying on business.

(2)No such levy as is mentioned in subsection (1) above shall be imposed by reference to emoluments paid or payable to an employee whose employment is carried on at or from such an establishment as is mentioned in that subsection.

(3)An employer shall not be obliged to comply with a requirement imposed under section 6 of the said Act of 1964 (returns, information and records) in respect of an establishment or employee if—

(a)at the time the requirement is imposed the establishment is situated as mentioned in subsection (1) above or, as the case may be, the employee's employment is carried on at or from such an establishment, or

(b)the requirement relates to a period during which the establishment was so situated or, as the case may be, the employee's employment was so carried on.

(4)The Secretary of State may by order made by statutory instrument provide that this section shall not apply in relation to such employees or such establishments as he may specify in the order or shall apply to them with such modifications as he may so specify; but no such order shall be made unless the Secretary of State has first consulted the Manpower Services Commission or the Commission has submitted proposals to him for an order under this subsection.

(5)An order made by virtue of subsection (4) above shall be subject to annulment by a resolution of either House of Parliament.

5Default powers in relation to industrial training boards.

(1)In subsection (1) of section 7 of the [1964 c. 16.] Industrial Training Act 1964 (proposals for exercise of board's functions and for levies) after paragraph (b) there shall be inserted the words " and a direction by the Commission under this subsection shall specify the time within which the board shall submit the proposals ".

(2)For subsection (2) of that section there shall be substituted—

“(2)Where proposals submitted to the Commission by a board under subsection (1) above appear unsatisfactory to the Commission, it may direct the board to submit fresh proposals within a specified time, stating in the direction in what respect the proposals already submitted appear to the Commission unsatisfactory; and where the fresh proposals also appear unsatisfactory to the Commission it shall report on them to the Minister and, if it appears to the Minister after he has considered the Commission's report that the fresh proposals are unsatisfactory, he may make an order declaring the board to be in default.

(2A)Where the Commission has directed a board to submit proposals to it under subsection (1) of this section in pursuance of a direction given to the Commission under section 3(1)(b) of the Employment and Training Act 1973, the Commission shall report to the Minister on the proposals submitted in pursuance of the direction and, if it appears to the Minister after he has considered the Commission's report that the proposals are unsatisfactory, he may direct the Commission to direct the board to submit fresh proposals to the Commission within a specified time and such a direction by the Commission shall state in what respect the proposals already submitted appear to the Minister unsatisfactory.

(2B)Where fresh proposals are submitted to the Commission in pursuance of a direction under subsection (2A) of this section, the Commission shall report on them to the Minister and, if it appears to the Minister after he has considered the Commission's report that the proposals are unsatisfactory, he may make an order declaring the board to be in default.

(2C)Where a board has failed to comply with a direction of the Commission under subsection (1), (2) or (2A) of this section within the time specified in the direction, the Commission shall report that fact to the Minister and the Minister may make an order declaring the board to be in default.”

(3)In subsections (3), (4) and (5) of the said section 7 the words " subsection (2) of " shall be omitted.

(4)At the beginning of subsection (4) of section 4A of that Act (subsections (2) to (6) of section 7 to have effect in relation to directions under subsection (1) of section 4A) there shall be inserted the words " A direction by the Commission under subsection (1) of this section shall specify the time within which the board shall submit the proposals and ".

6Miscellaneous amendments.

The [1964 c. 16.] Industrial Training Act 1964 shall have effect with the amendments specified in Schedule 1 to this Act. 7. The Agricultural Training Board.

7Sections 1 to 6 above do not affect the Industrial Training Act 1964 in its application to the Agricultural Training Board and accordingly references in those sections and in Schedule 1 to this Act to provisions of that Act which are set out in Part II of Schedule 2 to the [1973 c. 50.] Employment and Training Act 1973 are references to those provisions as so set out.

Miscellaneous provisions

8The Industrial Training Boards' Combined Pension Fund.

The trustees of the Industrial Training Boards' Combined Pension Fund may, with the consent of three quarters of the number of the industrial training boards whose officers and servants are eligible to benefit from the Fund, make such amendments of the rules of the Fund as they think fit.

9Abolition of Employment Service Agency and Training Services Agency.

(1)The Employment Service Agency and the Training Services Agency shall cease to exist.

(2)The provisions of Schedule 2 to this Act, Part I of which contains provisions supplementary to the abolition of the said Agencies and Part II of which contains amendments consequential on their abolition, shall have effect.

10Retention of receipts by certain bodies.

(1)Any sums received by a body to which this section applies shall be paid into the Consolidated Fund except to such extent as the Secretary of State and the Treasury agree to their retention by that body.

(2)This section applies to the Manpower Services Commission, the Advisory, Conciliation and Arbitration Service, the Health and Safety Commission and the Health and Safety Executive.

Supplementary

11Short title, repeals, commencement and extent.

(1)This Act may be cited as the Employment and Training Act 1981.

(2)The enactments mentioned in Schedule 3 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.

(3)The following provisions of this Act, namely section 2, paragraphs 1, 7 and 8 of Schedule 1 and the entry in Schedule 3 relating to paragraph 10 of the Schedule to the [1964 c. 16.] Industrial Training Act 1964, shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint and—

(a)different days may be appointed in pursuance of this subsection for the purposes of different provisions or for different purposes of the same provision; and

(b)any such order may contain such transitional, incidental and supplementary provisions as the Secretary of State considers appropriate in connection with the order.

(4)The provisions of this Act (other than paragraph 16 of Schedule 2 and the repeals consequential on that paragraph) do not extend to Northern Ireland.