Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A services contract (the later contract ) is a continuation contract in relation to a pre - reform commencement contract if:
(a) the parties to the later contract are the same as the parties to the pre - reform commencement contract; and
(b) one or more of the following subparagraphs is satisfied in relation to the later contract:
(i) the later contract is entered into pursuant to an option or similar right contained in the pre - reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre - reform commencement contract;
(ii) the contract period of the later contract immediately follows the contract period of the pre - reform commencement contract;
(iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre - reform commencement contract; and
(c) the later contract relates to the performance of the same kind of work as the pre - reform commencement contract.
Note 1: See also subsection 3 5( 7 ), under which a contract may be taken to be a continuation contract.
Note 2: For how this section applies in a transfer of business situation, see section 36.
(2) For the purposes of subparagraphs ( 1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:
(a) is consistent with a regular pattern of contracting between the parties to the contracts; or
(b) is covered by regulations made for the purposes of this paragraph.
Related continuation contracts
(3) A services contract is a related continuation contract in relation to another services contract if:
(a) the following subparagraphs are satisfied:
(i) the other services contract is a pre - reform commencement contract;
(ii) the first - mentioned services contract is a continuation contract in relation to the other contract; or
(b) the 2 services contracts are continuation contracts in
relation to the same pre - reform commencement contract.