The Industrial Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 2nd December 1996, make special provisions in relation to interest on awards and compensation orders made by industrial tribunals under the Equal Pay Act 1970 (“the 1970 Act”), the Sex Discrimination Act 1975 (“the 1975 Act”), the Race Relations Act 1976 (“the 1976 Act”) and the Disability Discrimination Act 1995 (“the 1995 Act”).

The opportunity has been taken to revoke the Sex Discrimination and Equal Pay (Remedies) Regulations 1993 (S.I. 1993/2798) and the Race Relations (Interest on Awards) Regulations 1994 (S.I. 1994/1748) and repeat their substance with only minor and drafting changes. Accordingly, the substantive effect of these Regulations is to apply, in relation to orders of compensation made under the 1995 Act, substantially the same special provisions as to interest which already apply in relation to awards and compensation orders made under the legislation on sex and race discrimination.

By revoking and repeating the substance of the 1993 and 1994 Regulations mentioned, these Regulations also ensure that the special provisions applying to interest on awards and orders of compensation in discrimination cases are contained in a single set of regulations rather than three sets.

As regards their application in relation to awards and orders of compensation made under the 1970 and 1975 Acts, these Regulations are made under section 2(2) of the European Communities Act 1972 and ensure that the remedies available under legislation in Great Britain relating to sex discrimination and to equal pay for men and women comply with the requirements of Council Directives 1975/117/EEC(1) and 1976/207/EEC(2) as interpreted by the European Court of Justice in Case No. C271/91—Marshall v Southampton and South-West Hampshire Area Health Authority (No. 2).

Regulation 2 enables an industrial tribunal which makes an award or order of compensation under the 1970, 1975, 1976 or 1995 Act to include a sum by way of interest on the amount awarded. Regulation 3 provides that such interest is to be calculated as simple interest which accrues from day to day and specifies the rates of interest to be used for England and Wales and for Scotland. Regulations 4 to 6 contain rules for the calculation of interest. There is also provision for the industrial tribunal to depart from these rules where it is of the opinion that serious injustice would be done if the rules were to be applied. Regulation 7 provides that written details must be given of the calculation of interest and that reasons must be given if no interest is awarded.

Regulation 8 alters the effect of the Industrial Tribunals (Interest) Order 1990 as it applies to an award or order of compensation made under the 1970, 1975, 1976 or 1995 Act (including any interest awarded under regulation 2). In relation to such an award interest will begin to accrue from the day after the day on which the tribunal’s decision is sent to the parties (and not from a date 42 days later); however no interest will be payable under the 1990 order if the full amount of the award is paid to the complainant within 14 days after the decision is sent out.

(1)

OJ No. L45. 19.2.75. p.19.

(2)

OJ No. L39. 14.2.76. p.40.