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Interest rates on Employment Tribunal compensation award


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I am confused about the new rules for interest on discrimination awards in the Employment Tribunal when the case spans the 29th July 2013 and the rate changed from 0.5% to 8.0%.

 

I understand the bit that says interest is payable at 8.0% if the respondent does not settle within 14 days of the remedy judgement but am having difficulty with the rest.

 

For example if a discriminationary event took place on 29th July 2010 and a liability hearing on 29th July 2012 found in favour of the claimant and a remedy hearing on 29th July 2014 awarded compensation for injury to feelings and psychiatric damage plus an award for loss of earnings what rate of interest is applicable?

 

Does interest accrue at 0.5% up to 29th July 2013 then 8.0%?

 

Can anyone give an example with numbers?

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The relevant date is for when the claim was presented to the Tribunal, rather than when the act occurred. So if the claim was issued after 28 July 2013, the calculation would be at 8%. That's for discrimination compensation only and can include anything up to the point of the hearing, for example past losses, but can't include future losses.

 

I think you are talking about two separate interest scenarios, though. The ET can award interest on compensation at the remedies hearing for discriminatory acts as part of the total compensation awarded. The other type of interest becomes payable on judgments which aren't paid within 14 days and wouldn't be calculated at the point of remedy. Interest on unpaid judgments could relate to any claim and would include future loss of earnings if they were awarded.

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Thanks Becky,

 

Sorry it has taken me ages to reply but I raised the question because a while ago I had read somewhere on the internet that interest of 0.5% had been awarded up to 29th July 2013 and 8% thereafter in a case named Jobes vs ???????? but I cannot find it again.

 

Does anyone have access to judgements and can confirm this award?

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