Increased Financial Assistance for Employers of Military Reservists

Regulations introduced on 1 October 2014 allow employers of military Reservists to claim further financial assistance to cover the costs of replacing the Reservist during mobilisation.

Military Reservists are currently paid directly by the Ministry of Defence while mobilised.  Employers can claim expenses to help cover the additional costs incurred through temporarily replacing them, for example due to hiring temporary staff or paying overtime to existing staff (up to a maximum of £110 per day).

From 1 October 2014, SME’s (up to 250 staff and £25.9m turnover) can now claim an additional monthly payment of up to £500 for each full month a Reservist is mobilised, assuming they are on a full-time contract and work at least 35 hours per week.  The amount will be pro-rated for mobilisation periods of less than a month and also for part-time employees.

To strengthen further the employment rights of Military Reservists, from 1 October 2014 the statutory qualifying period for unfair dismissal has been removed in cases where the dismissal is directly connected with the employee’s membership of the Reserve Forces.  This will apply only to those employees whose effective date of termination falls after 1 October 2014.

This new right sits alongside the existing obligation on employers to re-employ Reservists who return from mobilisation and also the statutory protection from redundancy purely on the grounds of their Reserve Service duties.

At Backhouse Solicitors we are specialists in all areas of employment law.  Whether you are an employer of Reservists, or a Reservist yourself, we are here to help.  For advice and assistance, please contact one of our expert solicitors for a free 30 minute consultation.

Tel: 01245 893400
Email: [email protected]

or use the Enquiry Form on our Contact Backhouse page.