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Explanatory Note

(This note is not part of the Regulation)

These Regulations, which are made under section 2(2) of the European Communities Act 1972, are made for the purpose of ensuring that the remedies available under legislation in Great Britain relating to sex discrimination and to equal pay for men and women comply with the requirements of Council Directives 1975/117/EEC(1) and 1976/207/EEC(2) (following the judgment of the European Court of Justice in Case No C271/91-Marshall v Southampton and South-West Hampshire Area Health Authority (No.2)). They come into force on 22nd November 1993.

Regulation 2 repeals section 65(2) of the Sex Discrimination Act 1975, which provided that an award of compensation by an industrial tribunal under Part II of that Act could not exceed a specified sum. The Schedule to the Regulations contains consequential amendments relating to cases where particular conduct is alleged to constitute both sex discrimination and racial discrimination, or both sex discrimination and unfair dismissal, or all three.

The remaining provisions of the Regulations relate to cases where an industrial tribunal makes “an award under the sex discrimination legislation”, defined in regulation 1(2) as an award under the Equal Pay Act 1970 of arrears of remuneration or damages or an order under section 65(1)(b) of the Sex Discrimination Act 1975 for payment of compensation.

Regulation 3 enables an industrial tribunal which makes such an award to include a sum by way of interest on the amount awarded. Regulation 4 provides that such interest is to be calculated as simple interest which accrues from day to day, and specifies the rates of interest to be used for England and Wales and for Scotland. Regulations 5 to 7 contain rules for the calculation of interest. There is also provision for the industrial tribunal to depart from the calculation 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 those rules. Regulation 8 provides that written details must be given of the calculation of interest and that reasons must be given if no interest is awarded. Regulation 9 ensures that an appeal will lie to the Employment Appeal Tribunal on any question of law relating to a decision to award or not to award interest.

Regulation 10 alters the effect of the Industrial Tribunals (Interest) Order 1990 as it applies to an award under the sex discrimination legislation (including any interest awarded under regulation 3). In relation to such an award, interest will begin to accrue from the day after the day on which the tribunal’s decision is 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.

(1)

OJ No. L45, 19.2.75, p. 19.

(2)

OJ No. L39, 14.2.76, p. 40.