SAIM2330

An employee has raised a grievance which has been settled via an internal company ‘quasi-judicial’ process, resulting in a backdated pay award. Interest is also to be paid on this at 2% per month. I am being told that the interest can be paid gross under SAIM2330 Interest: exemptions: personal injury damages. My questions are: 1. Can an internal ‘quasi-judicial process’ ever meet the legal threshold to be classed as an out of court settlement, therefore meaning that SAIM2330 can apply? 2. If the grievance was settled using ACAS, resulting in a COT3 agreement, would it meet the threshold to be classed as an out of court settlement so that SAIM2330 could apply? 3. Is interest of 2% per month reasonable or excessive? If excessive, what is the maximum interest rate permitted under SAIM2330? Thanks for your help.

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