PART IPRELIMINARY

Citation and commencement

1. These Regulations may be cited as the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 1997 and shall come into force on 1st April 1997.

General interpretation

2.-(1) In these Regulations-

"the 1996 Act" means the Reserve Forces Act 1996(1);

"adjudication officer" means a person appointed by or in accordance with the directions of the Secretary of State or the Defence Council to determine claims under these Regulations;

"average weekly earnings" means-

(a)the earnings paid by an employer to a reservist in the 52 weeks immediately preceding the relevant date divided by 52, and increased by a percentage which appears to the Secretary of State to represent the rate of increase in incomes in the United Kingdom in the year ending with the relevant date, or

(b)if-

(i)the reservist began employment with an employer on a day less than 52 weeks before the relevant date, or

(ii)in the opinion of the adjudication officer the figure calculated by the method described in sub-paragraph (a) above would not be a reliable estimate of the reservist's average weekly earnings,

the earnings which the reservist reasonably expects that he would have earned in the service of an employer, but for performing relevant service, in the 52 weeks immediately following the relevant date divided by 52;

"claimant" means a reservist or an employer who is claiming an award under these Regulations;

"earnings" includes-

but does not include-

"employer" means any person who is an employer of a reservist on the relevant date and includes-

"relevant date" means, subject to paragraph (2) below, the day on which a reservist is accepted into service for the purpose of performing relevant service;

"relevant service" means permanent service-

in respect of which a claim is made, but shall not include any period in which the reservist is serving a term of imprisonment or detention under the sentence of a court-martial or a court of law in the British Islands or any colony;

"reservist" means a person called out or recalled for relevant service;

"service pay" means any pay, bounty or allowance payable to a reservist for service in the armed forces but excluding any allowance payable for the cost of living overseas or for reimbursement of expenses.

(2) Where a person is performing relevant service and the date on which he is entitled to be released or discharged has been postponed under section 45(6), 53(3), (7) or (11), 55(3), (7) or (11), 57(3) or (7), 61 or 69(3) or (6) (as the case may be) of the 1996 Act, "the relevant date" means the day on which he would otherwise have been entitled to be released or discharged from that service.

PART IIBASIS FOR AWARDS TO RESERVISTS

Reservist's standard awards

3.-(1) A reservist shall, subject to fulfilment to the adjudication officer's satisfaction of the requirement to furnish information or documents under regulation 11(1) below, be entitled to a reservist's standard award.

(2) For the purposes of these Regulations a "reservist's standard award" means-

(a)the lesser of-

(i)the sum by which the reservist's average weekly earnings multiplied by the number of weeks in the period of relevant service exceeds the sum of his earnings and service pay for the same period; or

(ii)the sum by which earnings at the rate prescribed for the band into which the reservist falls exceeds his Service pay for the period of relevant service; and

(b)subject to paragraph (6) below, sums equivalent to any payments by an employer-

(i)into a pension scheme for the benefit of the reservist, his spouse or dependants;

(ii)to or on behalf of the reservist for accommodation or educational fees, or premiums in relation to health or medical insurance or life assurance, for accommodation, educational fees or medical insurance premiums,

which would have been paid to or on behalf of the reservist but for performing the period of relevant service; and

(c)a travel allowance of £15 for each complete week of relevant service in which the reservist has lost the benefit of any motor vehicle provided by his employer for private use and which would have been available for the spouse or dependant of the reservist but for his performing that service.

(3) If the reservist's service pay for the period of relevant service exceeds his average weekly earnings multiplied by the number of weeks in that period the aggregate of any payments under paragraph (2)(b)(ii) and (c) above shall be reduced by the amount of that excess.

(4) For the purposes of this regulation, the band into which a reservist falls shall be determined by his paid rank during the period of relevant service or by his membership of a specialist category and shall be as prescribed in Schedule 2.

(5) In this regulation and in Schedule 2-

(a)references to a rank shall include references to a rank or rate in any of Her Majesty's armed forces equivalent to any of the army ranks prescribed in Schedule 2 to these Regulations;

(b)references to a specialist category shall be a reference to any category of persons so described in notices which the Secretary of State may from time to time cause to be published as having specialist skills of exceptional value to the armed forces.

(6) Where it is a condition of the making by an employer of any of the payments referred to in paragraph (2)(b) above that the reservist makes payments for the same purpose, the making of an award under paragraph (2)(b) above shall be subject to the same condition.

(7) Where a reservist's standard award is made to a person to whom a service pension is payable-

(a)that award shall not be reduced by reason of the service pension;

(b)the service pension shall not be withheld or reduced by reason of that award.

Reservist's hardship awards

4.-(1) A reservist shall, if the adjudication officer is satisfied that-

(a)the reservist has suffered, or will suffer, financial hardship as a result of performing relevant service; and

(b)a reservist's standard award has been or will be insufficient to relieve such hardship,

be entitled to a reservist's hardship award.

(2) For the purposes of these Regulations "a reservist's hardship award" means an amount sufficient to relieve the hardship which a reservist has suffered or will suffer as a direct result of his performing relevant service.

PART IIIBASIS FOR AWARDS TO EMPLOYERS

Employer's standard awards

5.-(1) An employer shall, subject to fulfilment to the adjudication officer's satisfaction of the requirement to furnish information or documents under regulation 11(2) below, be entitled to an employer's standard award.

(2) For the purposes of this Part and Part IV, "an employer's standard award" means-

(a)a lump sum payment equivalent to any costs, other than recurring costs, but not exceeding-

(i)6 per cent of the reservist's average weekly earnings from that employer on the relevant date multiplied by 52; or

(ii)£2,400,

whichever is less; and

(b)sums equivalent to any recurring costs, not exceeding-

(i)4 per cent of the reservist's average weekly earnings from that employer; or

(ii)£31,

whichever is less, multiplied by the number of weeks in the period of relevant service; and

(c)an administration expenses allowance of £55 for each employee of his who is accepted into service.

(3) In this regulation and in regulation 6 below, "costs" means expenditure reasonably incurred by the employer in replacing the services of a reservist during the period of that reservist's relevant service, less any expenditure which would have been incurred by the employer but for the reservist's absence performing relevant service.

Employer's hardship awards

6.-(1) An employer shall, if an adjudication officer is satisfied that-

(a)the employer is eligible for an employer's standard award and has incurred costs exceeding one and a half times the amount to which an award under regulation 5(2)(a) or (b) is limited; and

(b)the incurring of such costs has caused or will cause that employer financial hardship which an employer's standard award will be insufficient to relieve,

be entitled to an employer's hardship award.

(2) For the purposes of this Part and Part IV "an employer's hardship award" means an amount sufficient to relieve the hardship referred to in paragraph 1(b) above.

Retraining awards

7.-(1) An employer shall, subject to-

(a)fulfilment to the adjudication officer's satisfaction of the requirement to furnish information or documents under regulation 11(3) below; and

(b)notification to the adjudication officer no later than 4 weeks after the date on which the reservist resumes employment with him of the employer's intention to claim a retraining award; and

(c)the claim being made within the time limit specified in regulation 8(3) below,

be entitled to a retraining award.

(2) The making of a claim within the time limit specified in paragraph (1)(b) above shall be deemed to be notification under that sub-paragraph.

(3) For the purposes of these Regulations a "retraining award" means a lump sum payment not exceeding £2,000 of expenditure incurred or to be incurred by an employer in retraining a reservist to regain nationally recognised standards of competence or qualifications required to carry out duties with that employer and which the reservist had immediately before starting a period of relevant service.

PART IVPROCEDURE FOR THE DETERMINATION OF CLAIMS

Time limits for making claims

8.-(1) A claim under these Regulations may not be made before-

(a)the date of service or deemed service on a reservist of a call-out notice under Part IV or V of the 1996 Act, a call-out or recall notice or any other notice pursuant to which the reservist may be required to perform relevant service; or

(b)if there is no such notice, the relevant date.

(2) A claim for an award other than a retraining award may not be made more than 4 weeks after the relevant date.

(3) A claim for a retraining award may not be made more than 8 weeks after the date on which the reservist resumes work with the employer.

(4) Notwithstanding paragraph (2) above, a claim for a reservist's hardship award or an employer's hardship award may be made no later than 8 weeks after the relevant date provided that the claimant has given notice to the adjudication officer no later than 4 weeks after the relevant date of his intention to make such a claim.

(5) For the purposes of this regulation a claim is deemed to have been made on the day when it is received by the adjudication officer.

Steps by representatives of claimants

9.-(1) Any step required to be taken by a claimant under this Part may, except for claims to which paragraph (2) below applies, be taken by any person authorised by the claimant to do so on his behalf.

(2) In the event of the death of a claimant or of a person who, if he had survived, could have been a claimant, a claim may be continued or made, as the case may be, by his personal representatives.

Person to whom claims made

10.-(1) A claim shall be made to the person specified in Schedule 3.

(2) The person to whom a claim has been made shall, if he is not an adjudication officer, immediately pass that claim to an adjudication officer.

Information and documents to be furnished in relation to claims

11.-(1) A reservist shall furnish with his claim the information or documents prescribed in paragraph 1 of Schedule 1.

(2) An employer shall furnish with his claim for an employer's standard award the information or documents prescribed in paragraph 2 of Schedule 1.

(3) An employer shall furnish with his claim for a retraining award the information or documents prescribed in paragraph 3 of Schedule 1.

(4) An adjudication officer may require any person to furnish such further information or documents in connection with a claim as the adjudication officer may at any time reasonably require.

(5) A person who has furnished information under this regulation shall notify the adjudication officer of-

(a)any inaccuracy in, or change to, that information; or

(b)any event,

which would materially affect the claim, no later than 7 days after the inaccuracy, change or event came to that person's attention.

Determination and payment of claims

12.-(1) The adjudication officer shall consider a claim promptly and in accordance with the relevant provisions of these Regulations.

(2) Where that determination takes into account any estimated cost or expense or any future event, it shall be a preliminary determination subject to confirmation when evidence of the actual amount or the occurrence of the event is provided.

(3) The adjudication officer shall within 2 days of making his determination give to the claimant written notification of his determination containing a statement-

(a)giving reasons for the determination;

(b)showing how the award, if any, has been calculated and the factors taken into account in awarding that amount;

(c)that the claimant may, if he is dissatisfied with the determination of his claim, appeal against the determination to a reserve forces appeal tribunal, and giving the address to which such an appeal should be sent.

(4) Any payment awarded under these Regulations shall be made by the Secretary of State.

Rejection of claims for non compliance with Regulations

13. The adjudication officer may reject a claim if the claimant has failed without reasonable excuse to comply with-

(a)any requirement under regulation 11(1), (2) or (3) above to furnish information or documents;

(b)any of the time limits prescribed in regulation 8 above.

Additional powers of adjudication officers

14. An adjudication officer may-

(a)treat the requirement to furnish information or documents under regulation 11(1), (2) or (3) above as having been satisfied if he already has that information or those documents when the claimant makes his claim;

(b)make an interim award pending his determination;

(c)review his determination at any time until the beginning of the hearing by a reserve forces appeal tribunal of an appeal against that determination;

(d)deem that a period of relevant service shall include any period between the time at which the reservist presents himself for service pursuant to his call-out or recall and the time at which he is accepted into service.

PART VMISCELLANEOUS PROVISIONS

Increase of rates of average weekly earnings

15. If the period of relevant service is still in progress on the first or subsequent anniversary of the relevant date, the average weekly earnings for the purposes of a reservist's standard award or regulation 5(2)(b) above shall be increased with effect from that anniversary by such percentage as appears to the Secretary of State to represent the average rate of increase in incomes in the United Kingdom in the year ending with that anniversary.

Power to compel acceptance of pension payments and provision of information as to use of pension payments

16.-(1) This regulation applies where an adjudication officer makes an award under these Regulations which includes a sum for the loss of any payment made into a pension scheme by an employer for the benefit of the reservist, his spouse or dependants.

(2) The adjudication officer may direct that the person to whom any such payment would have been made, but for the reservist's performance of relevant service, shall accept such sum as if (for the purpose of these Regulations only) it were a payment into the scheme by the employer.

(3) The Secretary of State may by written notice require any person to whom any payment referred to in this regulation has been made to provide to the Secretary of State or other person named in the notice information about the use made of that money.

Regulations 3(1), 5(1), 7(1) and 11(1) to (3)

SCHEDULE 1INFORMATION AND DOCUMENTS TO BE PROVIDED ON MAKING A CLAIM

1. A reservist, on making a claim, shall provide to the adjudication officer the following information-

(a)his-

full name;

date of birth;

place of birth;

Service number;

rank or rate;

(b)the branch or corps and unit (if any) in which he was serving on being called out for relevant service or, if he has been recalled, in which he last served;

(c)documents or other evidence showing-

(i)his earnings for the 52 weeks immediately preceding the relevant date; or

(ii)if the reservist began employment with an employer on a day less than 52 weeks before the relevant date, the earnings (if any) which the employer has paid to him in the complete weeks which have elapsed between that day and the relevant date and contracted to pay to or on behalf of the reservist in the 52 weeks immediately following the relevant date;

(d)similar details to those required under sub-paragraph (c) above in respect of service pay, including bounty for service other than relevant service;

(e)details of any payments made by his employer for the benefit of the reservist, his spouse or dependants for accommodation or educational fees, or premiums in relation to a pension scheme, health or medical insurance or life assurance;

(f)details of any car provided by the reservist's employer which would have been available for the private use of the reservist's spouse or dependants but was recovered or not made available by that employer as a consequence of the reservist's relevant service.

2. An employer shall, on making a claim, provide to the adjudication officer the following information or documents-

(a)earnings which he paid to the reservist in the 52 weeks immediately preceding the relevant date; or, if the reservist began employment with him on a day less than 52 weeks before the relevant date-

(i)the earnings paid by him to the reservist in the complete weeks which have elapsed between that day and the relevant date; and

(ii)written evidence of the earnings which the employer has contracted to pay to the reservist in the 52 weeks immediately following the relevant date;

(b)details of any payments made for the benefit of the reservist, his spouse or dependants for accommodation or educational fees, or premiums in relation to a pension scheme, health or medical insurance or life assurance;

(c)a statement of how the business has been harmed or will be harmed as a direct consequence of the reservist's absence;

(d)confirmation that staff similar to the reservist in qualifications, training, experience or the like are not available to cover the reservist's absence and have not, except for misconduct or inefficiency, been-

(i)given notice of dismissal or redundancy, or

(ii)allowed early retirement,

since the employer became aware that the reservist has been or is to be called out or recalled for relevant service;

(e)a statement of reasons why the absence of the reservist cannot be accommodated or the harm avoided or mitigated by making new arrangements with customers, suppliers, bankers or other persons or bodies having dealings with the business;

(f)details of any safeguards against accident to, illness or other absence of the reservist;

(g)a statement of the reasonable costs that he has incurred or expects to incur in replacing the reservist's services during the period of relevant service (distinguishing between recurring and other costs, and including details of any payments made or expected to be made into a pension fund and any National Insurance contribution made or expected to be made), together with a certificate that he has adopted the most cost effective method of doing so available to him.

3. An employer making a claim under regulation 7 for a retraining award shall provide to the adjudication officer-

(a)a statement of the reservist's qualifications or current experience on the relevant date which are necessary for his job and which he will no longer have at the end of the period of relevant service;

(b)a statement of any requirements imposed by law or laid down by codes of practice for minimum levels of qualification or current experience for the reservist's job;

(c)a statement that his claim allows, to the maximum possible extent, for the use of opportunities for the reservist to acquire the necessary experience or qualifications during the course of his daily work, or otherwise at no additional cost to the employer;

(d)a certificate of the reasonable retraining costs incurred or to be incurred.

Regulation 3(4) and (5)

SCHEDULE 2BANDS FOR THE PURPOSES OF REGULATION 3

Regulation 10

SCHEDULE 3PERSON TO WHOM CLAIMS SHALL BE MADE

1. Any claim under these Regulations by a reservist who has not been accepted into service or an employer shall be made to-

• (a)

  the person (if any) specified for the purpose of receiving claims in the call-out notice or recall notice served on the reservist; or

  (b)

  any adjudication officer at the place at which the reservist has presented himself for acceptance into service; or

  (c)

  the adjudication officer appointed for the service or reserve force in which the reservist is performing or will be performing relevant service, at his address specified below-

  Service or Reserve Force	Address
  Royal Navy, Royal Fleet Reserve (for naval officers or ratings) and Royal Naval Reserve	Adjudication Officer (RN) Main Mobilisation Office HMS Nelson HM Naval Base Portsmouth PO1 3LS
  Royal Marines, Royal Fleet Reserve (for marine officers or other ranks) and Royal Marines Reserve	Adjudication Officer (RM) Reinforcement Holding Unit CTC RM Lympstone Near Exmouth Devon EX8 5AR
  Army, Army Reserve and Territorial Army	Adjudication Officer (Army) RO1 TA/Reserves Directorate of Manning HQ Army Personnel Centre Kentigern House 65 Brown Street Glasgow G2 8EK
  Royal Air Force, Air Force Reserve and Royal Auxiliary Air Force	Adjudication Officer (RAF) DCRF (RAF) Personnel Management Centre HQ Personnel and Training Command RAF Innsworth Gloucester GL3 1EZ

2. A claim by a reservist who has been accepted into service shall be made to the officer commanding the unit in which the reservist is serving at the time he makes his claim.

Explanatory Note

(This note is not part of the Regulations)

These Regulations give effect to a new scheme for providing financial assistance for individuals and employers who suffer financial loss as a result of the call-out or recall of individuals for permanent service in the armed forces. A reservist who is self employed or a partner in a firm may claim in the capacity of a reservist, an employer or both.

Under regulation 3 a reservist will on production of documentation prescribed in Schedule 1 be entitled to an award, called a "reservist's standard award", for loss of earnings and certain other allowances. Those allowances may include pension payments or other allowances which are paid into a fund by an employer for the benefit of the reservist or his family. If they are paid on condition that the reservist also contributes to that fund, regulation 3(6) requires the reservist to continue to make such contributions if he is to be entitled to an award equivalent to the payments into the fund which the employer would have made had the reservist not been called out or recalled. Awards under regulation 3 are subject to a limit specified in Schedule 2, depending on the reservist's paid rank or specialist skills.

A reservist who wishes to claim more than the amount to which he is entitled under regulation 3 may claim a reservist's hardship award under regulation 4. There is no financial limit to such an award but the reservist must satisfy the adjudication officer that he has suffered or will suffer hardship which a reservist's standard award will be insufficient to relieve.

An employer who incurs extra costs as a result of the absence of an employee on permanent service may apply under regulation 5 for an employer's standard award. Eligibility is subject to production of documentation specified in Schedule 1 and to a maximum award. An employer may apply for a lump sum where he has incurred one-off costs or for sums equivalent to recurring costs which he may incur weekly or monthly, for example, during the period of the reservist's relevant service. Awards are subject to a limit, depending on whether it is a lump sum or in respect of recurring costs.

Where as a result of the reservist's absence an employer has suffered hardship which an employer's standard award is insufficient to relieve, the employer may claim an employer's hardship award under regulation 6. In order to be eligible he must satisfy the adjudication officer that he has reasonably incurred costs exceeding one and a half times the limit for an employer's standard award.

Under regulation 7 an employer may apply for a retraining award. This recognises that during a prolonged absence on permanent service an employee may lose some of the skills necessary for his civilian work or a qualification or licence may lapse. The award is subject to a limit of £2,000.

A person who is self-employed or a business partner or the Crown may apply for an award under regulation 5, 6 or 7. An employer will not, however, be eligible for an award under these Regulations for permanent service by his employee as a special member of a reserve force under Part V of the Reserve Forces Act 1996.

Regulation 8 specifies the time limits within which claims must be made.

Regulation 9 permits a claim under these Regulations to be made or continued on behalf of a claimant by anyone duly authorised by the claimant, or, where the claimant has died, by his personal representatives.

Regulation 10, with Schedule 3, specifies the name and address of the person to whom claims must be made and requires that person, if he is not an adjudication officer, to pass on claims immediately to an adjudication officer.

Regulation 11 sets out in paragraphs (1) to (3) the obligations on claimants to furnish the information specified in Schedule 1 or required by the adjudication officer to be furnished under paragraph (4).

Regulation 12 sets out the obligation of an adjudication officer to consider a claim and to give a written statement of the reasons for his decision, how the award (if any) has been calculated and the claimant's right of appeal to a reserve forces appeal tribunal. It also confirms that it is the Secretary of State who will pay any sum awarded.

An adjudication officer has the power under regulation 13 to reject any claim where the claimant has failed to comply with a requirement to produce evidence or with the relevant time limit specified in regulation 8.

Regulation 14 sets out an adjudication officer's additional powers, namely to make an interim award and to review his determination at any time up to the start of the hearing of an appeal against that determination. He also has power under this regulation to deem a period of relevant service as beginning at the time when the reservist presents himself for relevant service in case, for example, there is a significant delay between that date and the date on which the reservist is accepted into service.

Regulation 15 provides for the automatic uprating of awards after a year of permanent service to take into account inflation and to avoid the administrative burden of a claimant having to make a fresh claim for an increased award.

Regulation 16 ensures that the administrator of a pension scheme for the benefit of a reservist or his family cannot refuse to accept payment of premiums by the Secretary of State in substitution for, for example, the reservist's employer. It also empowers the Secretary of State to seek information verifying that such payments have been applied for the purposes for which they were awarded.

A compliance cost assessment of the effect that this instrument would have on the costs of business is available from the Directorate of Reserve Forces & Cadets Secretariat, Room 6/27, Metropole Building, Northumberland Avenue, London WC2N 5BL.