INDUSTRIAL TRIBUNALS Citation, commencement, interpretation and revocation 1 1 These Regulations may be cited as the Industrial Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996 and shall come into force on 2nd December 1996. 2 In these Regulations— “the 1970 Act ” means the Equal Pay Act 1970 ; “the 1975 Act ” means the Sex Discrimination Act 1975 ; “the 1976 Act ” means the Race Relations Act 1976; “the 1995 Act ” means the Disability Discrimination Act 1995 and; “an award under the relevant legislation” means— an award under the 1970 Act of arrears of remuneration or damages, or an order under section 65(1)(b) of the 1975 Act, section 56(1)(b) of the 1976 Act or section 8(2)(b) of the 1995 Act for payment of compensation, but does not include an award of costs under rule 12 in Schedule 1 to the Industrial Tribunals (Constitution and Rules of Procedure) Regulations 1993 , or of expenses under rule 12 in Schedule 1 to the Industrial Tribunals (Constitution and Rules of Procedure) (Scotland) Regulations 1993 , even if the award of costs or expenses is made in the same proceedings as an award under the 1970 Act or such an order. 3 The Sex Discrimination and Equal Pay (Remedies) Regulations 1993 and the Race Relations (Interest on Awards) Regulations 1994 are revoked. Interest on awards 2 1 Where, at any time after the commencement of these Regulations, an industrial tribunal makes an award under the relevant legislation— a it may, subject to the following provisions of these Regulations, include interest on the sums awarded; and b it shall consider whether to do so, without the need for any application by a party in the proceedings. 2 Nothing in paragraph (1) shall prevent the tribunal from making an award or decision, with regard to interest, in terms which have been agreed between the parties. Rate of interest 3 1 Interest shall be calculated as simple interest which accrues from day to day. 2 Subject to paragraph (3), the rate of interest to be applied shall be, in England and Wales, the rate from time to time prescribed for the Special Investment Account under rule 27(1) of the Court Funds Rules 1987 and, in Scotland, the rate fixed, for the time being, by the Act of Sederunt (Interest in Sheriff Court Decrees or Extracts) 1975 . 3 Where the rate of interest in paragraph (2) has varied during a period for which interest is to be calculated, the tribunal may, if it so desires in the interests of simplicity, apply such median or average of those rates as seems to it appropriate. Calculation of interest 4 1 In this regulation and regulations 5 and 6, “day of calculation” means the day on which the amount of interest is calculated by the tribunal. 2 In regulation 6, “mid-point date” means the day which falls half-way through the period mentioned in paragraph (3) or, where the number of days in that period is even, the first day of the second half of the period. 3 The period referred to in paragraph (2) is the period beginning on the date, in the case of an award under the 1970 Act, of the contravention and, in other cases, of the act of discrimination complained of, and ending on the day of calculation. 5 No interest shall be included in respect of any sum awarded for a loss or matter which will occur after the day of calculation or in respect of any time before the contravention or act of discrimination complained of. 6 1 Subject to the following paragraphs of this regulation— a in the case of any sum for injury to feelings, interest shall be for the period beginning on the date of the contravention or act of discrimination complained of and ending on the day of calculation; b in the case of all other sums of damages or compensation (other than any sum referred to in regulation 5) and all arrears of remuneration, interest shall be for the period beginning on the mid-point date and ending on the day of calculation. 2 Where any payment has been made before the day of calculation to the complainant by or on behalf of the respondent in respect of the subject matter of the award, interest in respect of that part of the award covered by the payment shall be calculated as if the references in paragraph (1), and in the definition of “mid-point date” in regulation 4, to the day of calculation were to the date on which the payment was made. 3 Where the tribunal considers that in the circumstances, whether relating to the case as a whole or to a particular sum in an award, serious injustice would be caused if interest were to be awarded in respect of the period or periods in paragraphs (1) or (2), it may— a calculate interest, or as the case may be interest on the particular sum, for such different period, or b calculate interest for such different periods in respect of various sums in the award, as it considers appropriate in the circumstances, having regard to the provisions of these Regulations. Decision in writing 7 1 The tribunal’s written statement of reasons for its decision shall contain a statement of the total amount of any interest awarded under regulation 2 and, unless this amount has been agreed between the parties, either a table showing how it has been calculated or a description of the manner in which it has been calculated. 2 The tribunal’s written statement of reasons shall include reasons for any decision not to award interest under regulation 2. Interest for period after award 8 1 The Industrial Tribunals (Interest) Order 1990 shall apply in relation to an award under the relevant legislation (whether or not including interest under regulation 2) as if references in that Order to the calculation day were references to the day immediately following the relevant decision day (as defined in Article 2(3) of the Order) and accordingly interest shall accrue under the Order from that day onwards (including that day). 2 Notwithstanding paragraph (1), no interest shall be payable by virtue of that Order if payment of the full amount of the award (including any interest under regulation 2) is made within 14 days after the relevant decision day. John M Taylor Minister for Corporate and Consumer Affairs Department of Trade and Industry 5th November 1996