Finding out the current rate of interest to be applied to an award of damages for discrimination is more difficult than it ought to be.
The Employment Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996 say:
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
The Court Funds Office publishes a leaflet setting out all the rate changes since 1965.
The rate went down from 6% (where it had been constant since 2002) to 3% from 1 February 2009. It’s due to go down again to 1.5% on 1 June 2009.
Except in discrimination cases, interest on tribunal awards runs from 42 days after the decision is made. ((In discrimination cases interest runs from the moment of the discriminatory act.)) Sometimes, however, the award is altered after the decision is made, following a review or appeal.
In that case, for the purposes of calculating interest the date of the decision remains the date that the original date was made.
Note, however, that this only applies where a sum of money was awarded in the first instance.
Andrew wins his deduction from wages claim on 14th May 2007 and is awarded £5,000. He disputes the calculation. At a review hearing on the 6th August he succeeds in obtaining a judgment for £5,500. Interest is calculated from 25th June, 42 days after the original decision on 14th May.
Barbara also has a deduction from wages claim on the 14th May, but she is unsuccessful. She appeals and on 2nd July the EAT awards her £10,000. Interest will not begin to run until 13th August; 42 days after the decision on appeal.