S.L. 478.2 Art. 12Employment condition.

(1) Subject to the other provisions of this regulation, the employment condition referred to in regulation 3(1) shall be satisfied if, during the project period or within three years from the termination thereof, the qualifying company in question employs at least four additional employees.

(2) Subject to sub-regulation (3), an individual shall be deemed to be an additional employee if all the following conditions are met:

(a) he is employed under an indefinite contract or for a period of not less than three years;

(b) his duties are solely and directly related to the activities carried out by the qualifying company in the film servicing industry;

(c) his employment represents a net increase in the number of full time employees of the qualifying company;

(d) he was not, at any time during the period of two years prior to his employment with that company, employed with a person related through direct or indirect ownership or shareholding with that company;

(e) his employment is certified by the Commissioner in accordance with regulation 13 as an employment of an additional employee for the purpose of these regulations;

(f) he remains in the employment of the said qualifying company for at least three years.

(3) When the employment of an individual has been certified in accordance sub-regulation (2)(e) and that individual does not remain in the employment of the qualifying company in question, for any reason whatsoever, for a period of at least three years and is not validly replaced as provided in sub-regulation (4), he shall be deemed to have never been an additional employee.

(4) An employee shall be deemed to have been validly replaced if:

(a) within three months from the date of the termination of his employment with a qualifying company, that company employs another individual in his place; and

(b) the employment of the replacement employee satisfies the conditions of sub-regulation (2), except that the fact that it is a replacement shall not, of itself, be deemed to be a breach of the condition of paragraph

(c) thereof; and

(c) the aggregate of the periods of employment of the into account for the purpose of sub-regulation (4)(c).

(6) In calculating the number of additional employees, an employee and his replacement or replacements shall count as one additional employee.

(7) If a qualifying company that has availed itself of the benefit of the tax credit under these regulations does not satisfy the employment condition it shall forfeit the right to that benefit and the provisions of regulation 15 shall apply.