Section 104K(5)

In the case of an employer that is a local authority, subsection (1) does not apply in relation to an employee if— at the time of the dismissal, a relevant intervention direction has effect in relation to the authority, the relevant intervention direction— specifies that the reason, or one of the reasons, for the giving of the direction is that the authority is undergoing financial difficulties, and contains provision relating to the financial management or financial governance of the authority, and the authority shows that— the reason for the replacement was to eliminate or significantly reduce, or significantly mitigate the effect of, any of the financial difficulties referred to in paragraph (b)(i), and in all the circumstances the authority could not reasonably have avoided the need to replace the employee.

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Source: legislation.gov.uk · retrieved 2026-09-04