What help is there for employers when Reservists are called up for service?

When the Government decides, under the provision of the Reserve Forces Act 1996, to mobilise members of the Reserve Forces for full-time military service, Reservists may be called up with little or no notice.  However, both the Reservist and the Reservist’s employer are given 28 days’ notice of mobilisation if it is possible to do so.  The period of mobilisation may be between three months and a year.

Employers should be aware of those employees who are Reservists and there should already have been discussions between the employer, the Reservists and the Reservist’s Unit to agree on the Reservist’s availability for mobilisation.  Some employees with particular skills are designated “High Readiness Reservists” but this is with prior written agreement of the employer.  However, where necessary, mobilisation can occur without any consideration of the employee’s personal or employment circumstances.

If an employer believes that the absence of the Reservist will cause financial harm to the business, a request can be made for exemption, deferral or even revocation of mobilisation.

Pay and benefits for Reservists

Employers are not required to pay a Reservist’s wages or salary during mobilisation, or to continue to provide benefits, and no compensation is available from the Ministry of Defence (MOD) to do so.

Reservists whose civilian pay is higher than their service pay receive an additional payment to make up the difference between the two.  This is subject to an overall cap of £548 per day (equivalent to around £200,000 a year).  For those serving as Medical Consultants, the cap is £822 per day (equivalent to around £300,000 a year).

Reservists are also able to claim the cost of replacing certain benefits in kind, such as health insurance or educational fees for a dependent child, where these are suspended by their employer on mobilisation.  Any payments to the Reservist for these purposes count towards the overall cap.

Where a company car is withdrawn by an employer and that car was available for use by the Reservist’s spouse, partner or dependants, and no other car is available, the Reservist can claim a flat rate allowance of £10.70 per day (about £325 per month).  This sum also counts towards the cap.

Reservists can also claim for certain additional expenses that they incur when they are mobilised.  These include, for example, costs associated with childcare and the care of dependent relatives.  These costs are not included in the payment cap.

If the Reservist continues to make contributions to the employer’s pension scheme, the MOD will also pay the contributions into the scheme that the employer would otherwise have paid.

Claims for employers’ costs

Employers of reservists may claim

• one-off costs, such as advertising for a temporary replacement for the mobilised employee or a one-off agency fee, without any financial limit
• ongoing costs, such as extra overtime costs, ongoing agency fees or paying additional salary to a temporary replacement, up to £110 per day during the period of mobilisation
• training costs, if an when the employee returns to work, for training that the employee would not have needed if the mobilization had not occurred, without any financial limit.

Demobilisation

Following demobilisation, the employer is obliged to reinstate the Reservist to the original job, as long as the Reservist gives notice to return, normally by the third Monday following demobilisation.  If the original job is not available, an equivalent job with the same terms and conditions of service must be provided.

Further information on all aspects of Reservist’s responsibilities and entitlements is provided on the SaBRE website.