Explanatory note

(This Note is not part of the Order)

This Order, which comes into force on 1st April 1990, provides that sums of money payable as a result of a decision of an Industrial Tribunal shall carry interest at the rate specified for the time being by section 17 of the Judgments Act 1838 when all or part of a sum payable remains unpaid 42 days after the document containing the tribunal’s decision is recorded as having been sent to the parties. Separate provisions relating to appeals and reviews have the effect, in general, that interest still accrues on money remaining unpaid 42 days after the document containing the tribunal’s decision is recorded as having been sent to the parties, but accrues on the amount as varied if the appeal or review results in a variation. Transitional arrangements provide that for the purposes of the Order, decisions of the kind to which the Order refers, made before 1st April 1990 are deemed to have been made on that day.

The Order provides that where part of a sum of money payable is either subject to recoupment pursuant to the Employment Protection (Recoupment of Unemployment Benefit and Supplementary Benefit) Regulations 1977 or required to be paid in respect of income tax or national insurance contributions that part is to be disregarded in computing interest.

The Order places a duty on the Secretary of the Tribunals to inform the parties to proceedings of the effect of this Order when an Industrial Tribunal makes a decision to which this Order attaches.