On 8 July, the Employment Tribunals (Interest on Awards in Discrimination Cases)(Amendment) Regulations 2013 (SI 1669/2013) and the Employment Tribunals (Interest) Order (Amendment) Order 2013 (SI 1671/2013) were laid before Parliament. The legislation:
- Increases the rate of interest payable on a claimant's losses up to judgment, as part of compensation for discrimination in England and Wales, from 0.5% to 8%. This brings England and Wales into line with Scotland where the interest rate has been 8% for the last 20 years.
- Amends the Employment Tribunals (Interest) Order 1990 so that interest on a tribunal award is payable from the day after the relevant decision day, unless the full amount is paid within 14 days after the decision day. Interest currently only accrues on an unpaid tribunal award after 42 days.
Under the transitional provisions for both pieces of legislation the changes apply in relation to a claim which is presented to an Employment Tribunal Office on or after 29 July 2013.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
