Section 37D | Unpaid amount of relevant sum: further provision ^F1

(1)Subsections (2) and (3) apply where—^F1

(a)a relevant sum is to be paid by instalments,^F1

(b)any instalment is not paid on or before the day on which it is due to be paid, and^F1

(c)a warning notice (see section 37E) is given in consequence of the failure to pay that instalment (“the unpaid instalment”).^F1

(2)For the purposes of calculating the unpaid amount for—^F1

(a)that warning notice, and^F1

(b)any penalty notice given in respect of that warning notice,^F1

any remaining instalments (whether or not yet due) are to be treated as having been due on the same day as the unpaid instalment.

(3)Accordingly, the amount outstanding in respect of the financial award or settlement sum is to be taken to be—^F1

(a)the aggregate of—^F1

(i)the unpaid instalment, and^F1

(ii)any remaining instalments,^F1

including, in the case of a settlement sum, any amount which is not recoverable under section 19A(3) by reason only of not being due,

(b)interest on those amounts calculated in accordance with section 37B(1)(b) or 37C(1)(b) (and subsection (2)).^F1

(4)Subsections (2) and (3) are not to be taken to affect the time at which any remaining instalment is due to be paid by the employer.^F1

(5)The provisions of this Part apply where a financial award consists of two or more sums (whether or not any of them is a costs sum) which are required to be paid at different times as if—^F1

(a)it were a relevant sum to be paid by instalments, and^F1

(b)those sums were the instalments.^F1

(6)Where a payment by an employer is made, or purported to be made, in respect of a relevant sum, the Secretary of State may determine whether, and to what extent, the payment is to be treated as being—^F1F2

(a)in respect of that relevant sum or instead in respect of some other amount owed by the employer;^F1

(b)in respect of the initial amount or interest on it, in the case of a payment treated as being in respect of the relevant sum.^F1