Donna Lawrence

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.

Hi Admin 25. Sorry - I obviously didn't make myself clear. We will reimburse the employee for their room rental cost - rental only, not covering food. We are proposing paying scale rates for meals according to EIM05275. Is this ok? Thanks

Hi Admin 25. Thanks for your response. So if our employee working abroad is invoiced for their room rental, and the company reimburses the employee (or pays the landlord direct), is it ok if we then pay the employee scale rates according to EIM05275 at 80% then 50% of the total residual rate? This seems to fit the spirit of the law if not the letter of the law. EIM05275 stipulates a vacant residential property or a serviced flat and the employee would be in a rented room rather than one of these. But otherwise as far as I can see the arrangement is the same, so EIM05275 should apply. Please can you confirm? Thanks.

A further question please. What overseas scale rates is an employee entitled to when they rent a room from a private individual (colleague) and have to pay for their own meals? Or when they rent the room and get meals provided? This doesn't appear to be covered by either EIM05265 or EIM05275. Thank you.

Admin 8, Thanks very much.

Under EIM05275, an employee working abroad and living in vacant residential property or a serviced flat can be paid 80% per day of the appropriate total residual rate for the first 7 days, and 50% for the eighth and subsequent days. My question is - is there any time limit to how long this can be paid beyond the eighth day? Can the payment be made indefinitely at 50% per day? Thanks!