Explanatory note

This Order relates to cases where the Fair Employment Tribunal makes an order under section 26(1)(b) of the Fair Employment (Northern Ireland) Act 1976 for payment of compensation (“an award under the Act”). It comes into force on 17th July 1995.

Article 3 enables a tribunal which makes such an award to include a sum by way of interest on the amount awarded. Article 4 provides that such interest is to be calculated as simple interest which accrues from day-to-day, and prescribes the rates at which interest is to be calculated. Articles 5 to 12 contain other rules for the calculation of interest. In particular these provide that interest is not, in general, payable under this order in relation to any period after a tribunal has included interest on an award under the Act. In cases of where awards have been reviewed, reassessed or subject to an appeal and, as a result, the award has been varied, interest is to be calculated on the award as varied. There is also provision for a tribunal to depart from these rules where it is of the opinion that there are exceptional circumstances which have the effect that serious injustice would be done if it were to apply these rules. Article 13 provides that written details must be given of the calculation of interest and that reasons must be given if no interest is awarded. Article 14 ensures that an appeal will lie to the Court of Appeal on any question of law relating to a decision to award or not to award interest.

Article 15 alters the effect of the Fair Employment Tribunal (Interest) Order (Northern Ireland) 1992 (including any interest awarded under Article 3 of that Order). In relation to such an award, interest will begin to accrue under that Order from the day after the day on which the tribunal’s decision As sent to the parties (and not from a date 42 days later), but no interest will be payable under the Order if the full amount of the award is paid to the complainant within 14 days after the decision is sent out.