Section 16(2) of the Principal Act is amended -

(a) in paragraph (a), by substituting "circumstances," for "circumstances, and",

(b) by substituting the following for paragraph (b):

"(b) the terms or conditions of the contract -

(i) relating to the place where the work under it is required to be done, the capacity in which the employee concerned is to be employed and any other terms or conditions of employment are not less favourable to the employee than those of his or her contract of employment immediately before the start of the period of absence from work while on parental leave, and

(ii) incorporate any improvement to the terms or conditions of employment to which the employee would have been entitled if he or she had not been so absent from work during that period,

and

(c) the continuity of service is preserved.".