# Defence Reform Act 2014

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U.K.

# Defence Reform Act 2014

# 2014 CHAPTER 20

An Act to make provision in connection with any arrangements that may be made by the Secretary of State with respect to the                        provision to the Secretary of State of defence procurement services; to make provision relating to defence procurement contracts                        awarded, or amended, otherwise than as the result of a competitive process; to make provision in relation to the reserve forces                        of the Crown; and for connected purposes.                     

[14th May 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

Prospective

## **Part 1**U.K.Defence procurement

### Defence procurement arrangementsU.K.

#### 1Arrangements for providing defence procurement servicesU.K.

(1)This Part applies if the Secretary of State makes arrangements—                     

(a)for a company to provide defence procurement services to the Secretary of State under contract, and                     

(b)for that or another company—                     

(i)to acquire from the Secretary of State rights in or over premises and property used for the purposes of DE&S, and                     

(ii)to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection                           with DE&S immediately before the time the company is to become their employer,                     

with a view to those premises, that property and the services of those employees being made available for providing the defence                        procurement services.                     

(2)This Part also applies if—                     

(a)the Secretary of State makes arrangements (“the new arrangements”) for a company to provide defence procurement services to the Secretary of State under contract, which may include arrangements                           for another company to make premises, property and the services of employees available for providing the defence procurement                           services, and                     

(b)the new arrangements are the successor to arrangements mentioned in subsection (1) or other arrangements mentioned in this                           subsection (“the old arrangements”).                     

(3)The new arrangements are “the successor” to the old arrangements if—                     

(a)a company mentioned in subsection (2)(a) is or was a contractor under the old arrangements, or                     

(b)for the purposes of the new arrangements, property, rights or liabilities of a company which is or was a contractor under                           the old arrangements are to be or have been transferred, by virtue of the old arrangements or by a transfer scheme under section                           10, to a company mentioned in subsection (2)(a).                     

(4)The new arrangements are also “the successor” to the old arrangements if—                     

(a)property, rights or liabilities of a contractor under the old arrangements have been transferred, by virtue of those arrangements                           or by a transfer scheme under section 10, to the Secretary of State, and                     

(b)the new arrangements provide for a company mentioned in subsection (2)(a)—                     

(i)to acquire from the Secretary of State rights in or over premises and property used for the purposes of the departmental defence                           procurement undertaking, and                     

(ii)to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection                           with that undertaking immediately before the time the company is to become their employer,                     

with a view to those premises, that property and the services of those employees being made available for providing the defence                        procurement services.                     

(5)Subsections (1)(b) and (4)(b) apply whether the arrangements provide for the company to acquire rights in or over premises                           and property, or to become the employer of persons, on one, or on more than one, occasion.                     

(6)References to a company in subsection (2) include, in particular, a publicly owned company (and references to a company in                           the other provisions of this Part are to be read accordingly).                     

(7)Arrangements mentioned in this section may provide for a contractor to exercise to any extent a discretion of the Secretary                           of State in connection with the exercise by the Secretary of State of a function involving defence procurement.                     

(8)In this Part—                     
            -  “contractor” means—                             (a)
a company—
(i)
which provides defence procurement services to the Secretary of State under contract by virtue of arrangements mentioned in                                                this section (“relevant arrangements”), or                                             
(ii)
in relation to which relevant arrangements have been made for it to provide defence procurement services but which is not                                                yet doing so, or                                             
(b)
a company—
(i)
which, by making premises, property and the services of employees available, enables defence procurement services to be provided                                                to the Secretary of State under contract by virtue of relevant arrangements, or                                             
(ii)
in relation to which relevant arrangements have been made for it to make premises, property and the services of employees                                                available for enabling defence procurement services to be provided but which is not yet making those things available;                                             
 
            -  “DE&S” means the undertaking carried on by the Secretary of State and known as Defence Equipment and Support;                            
            -  “defence procurement” means—                             (a)
the acquisition of anything (including support or logistics services) required for defence purposes,
(b)
the management, monitoring or enforcement of contracts entered into for the acquisition of anything so required, and
(c)
related support or logistics;
 
            -  “defence procurement services” means services relating to defence procurement;                            
            -  “defence purposes” means—                             (a)
the purposes of defence (whether or not of the United Kingdom) or policing, or
(b)
related purposes;
 
            -  “the departmental defence procurement undertaking” means any undertaking carried on by the Secretary of State for the purposes of defence procurement after arrangements mentioned                              in subsection (1) have come to an end.                            

#### 2Financial assistanceU.K.

(1)The Secretary of State may give financial assistance to a contractor.                     

(2)The financial assistance may be given on terms and conditions that the Secretary of State thinks appropriate.                     

(3)“Financial assistance” means loans, guarantees or indemnities, or any other kind of financial assistance (actual or contingent).                     

#### 3Financial claims against contractors or former contractorsU.K.

(1)If a financial claim is brought in a court in the United Kingdom or elsewhere against a company which is, or has been, a contractor,                           any liability of the company resulting from the claim is transferred to the Ministry of Defence.                     

(2)The Secretary of State may make payments for the purpose of settling any liability of the Ministry of Defence that may arise,                           or has arisen, under this section.                     

(3)A company which is, or has been, a contractor must provide the Secretary of State with any assistance that the Secretary of                           State reasonably requires in connection with a financial claim that may be, or has been, brought against the company (including                           in connection with any appeal or further appeal in relation to the claim).                     

(4)The assistance that a company may be required to provide includes in particular—                     

(a)providing documents, other information or explanations;                     

(b)providing access to evidence;                     

(c)making employees available for the purposes of court proceedings.                     

(5)An obligation imposed on a company under subsection (3) is enforceable as if contained in a contract between the company and                           the Secretary of State.                     

(6)For the purposes of this section, a claim is a “financial claim” to the extent that—                     

(a)it is a claim for damages or any other claim for a sum of money,                     

(b)it is brought by a person other than an excluded person, and                     

(c)it is not an excluded claim.                     

(7)In this section—                     
            -  “excluded person”, in relation to a claim against a company, means—                             (a)
another company which is, or has been, a contractor, or
(b)
a Minister of the Crown or Government department;
 
            -  “excluded claim”, in relation to a claim against a company, means a claim which relates to—                             (a)
services provided by the company otherwise than to the Secretary of State for Defence,
(b)
a contract of employment to which the company is party,
(c)
any contract (other than a contract of employment) entered into by the company for the purpose of enabling it to provide services,
(d)
any health and safety obligation of the company, or
(e)
anything done or omitted to be done by the company before it became, or after it ceased to be, a contractor;
 
            -  “health and safety obligation”, in relation to a company, means an obligation (whether or not imposed by legislation)—                             (a)
relating to the health, safety or welfare at work of the company's employees, or
(b)
relating to risks to the health or safety of other persons arising out of or in connection with the company's activities.
 

(8)Nothing in this section affects any arrangements between the Secretary of State and a company which is, or has been, a contractor                           under which the company is to compensate the Secretary of State in respect of—                     

(a)any liability under subsection (1), or                     

(b)any payment made under subsection (2).                     

#### 4Exemptions relating to premises used by a contractorU.K.

Schedule 1 (exemptions relating to premises used by a contractor) has effect.

#### 5Jurisdiction of Ministry of Defence PoliceU.K.

(1)The places to which section 2(2) of the Ministry of Defence Police Act 1987 (jurisdiction) applies include land, vehicles,                           vessels, aircraft and hovercraft which are—                     

(a)in the possession, under the control or used for the purposes of a contractor, and                     

(b)used for the purposes of, or for purposes which include, the provision of defence procurement services to the Secretary of                           State by virtue of arrangements mentioned in section 1.                     

(2)Section 2(3) of that Act has effect as if the reference to Crown property included a reference to property which—                     

(a)belongs to a contractor, is in its possession or under its control or has been unlawfully removed from its possession or control,                           and                     

(b)is, or was immediately before its removal, used to any extent for the purpose of the provision of defence procurement services                           as mentioned in subsection (1)(b).                     

(3)Section 2(3) of that Act also has effect as if the reference to a contract entered into by the Secretary of State for Defence                           for the purposes of his Department or the Defence Council included a reference to a contract entered into by a contractor                           for the purposes of, or for purposes which include, the provision of defence procurement services as mentioned in subsection                           (1)(b).                     

#### 6Status of contractorU.K.

(1)This section applies where arrangements mentioned in section 1 provide for a contractor to act on behalf of the Secretary                           of State for the purposes of a provision of a contract entered into by the Secretary of State at any time before the vesting                           date for the purposes of defence procurement.                     

(2)Any right or power of the Secretary of State under the provision of the contract may be exercised by the contractor on behalf                           of the Secretary of State.                     

(3)Any duty or liability of the Secretary of State under the provision of the contract may be discharged by the contractor on                           behalf of the Secretary of State.                     

(4)Nothing in the contract or otherwise prevents or penalises the exercise of a right or power of the Secretary of State, or                           the discharge of a duty or liability of the Secretary of State, in the way mentioned in subsection (2) or (3).                     

#### 7Restrictions on disclosure or use of informationU.K.

Schedule 2 (restrictions on disclosure or use of information) has effect.

#### 8Intellectual property rightsU.K.

(1)The Secretary of State may provide a protected work to a contractor or a service provider to a contractor, without infringing                           copyright or database right, if—                     

(a)the Secretary of State acquired (whether before or after the coming into force of this section) a right to use the work under                           or in connection with a relevant contract, and                     

(b)the provision of the work is necessary or expedient for the purposes of arrangements mentioned in section 1.                     

(2)A contractor or former contractor, or a service provider to a contractor or former contractor, may, without infringing copyright                           or database right, provide a protected work provided to it under subsection (1) or this subsection—                     

(a)to a contractor or service provider to a contractor, or                     

(b)to the Secretary of State,                     

if the provision of the work by the contractor, former contractor or service provider is necessary or expedient for the purposes                        of arrangements mentioned in section 1.                     

(3)A contractor or service provider to which a protected work has been provided under subsection (1) or (2) may, without infringing                           copyright or database right, make any use of the work that the Secretary of State could make as a result of the Secretary                           of State's right to use the work if the use of the work by the contractor or service provider is necessary or expedient for                           the purposes of arrangements mentioned in section 1.                     

(4)In this section—                     
            -  “ancillary services” means services certified by the Secretary of State to be services appearing to the Secretary of State to be calculated to                              facilitate, or to be conducive or incidental to, arrangements mentioned in section 1;                            
            -  “copyright work” has the meaning given by Part 1 of the Copyright, Designs and Patents Act 1988 (see section 1(2) of that Act);                            
            -  “database” has the meaning given by section 3A of that Act;                            
            -  “database right” has the same meaning as in Part 3 of the Copyright and Rights in Databases Regulations 1997 (S.I. 1997/3032);                            
            -  “former contractor” means a company which has been a contractor;                            
            -  “protected work” means—                             (a)
a copyright work, or
(b)
a database in which database right subsists;
 
            -  “relevant contract” means a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence                              procurement;                            
            -  “service provider”, in relation to a contractor or former contractor, means a person who performs ancillary services for that contractor.                            

(5)In this section a reference to providing a protected work to a person includes a reference to the making of a copy of the                           work for the purposes of providing it to the person.                     

(6)In this section a reference to the right to use a protected work—                     

(a)in relation to a copyright work, is a reference to a licence to exercise a right which would otherwise be exercisable by the                           owner of the copyright in the work;                     

(b)in relation to a database, is a reference to a right to use the database under a licence to do an act restricted by database                           right in the database.                     

### TransfersU.K.

#### 9Transfer of employees: application of TUPE regulationsU.K.

(1)The TUPE regulations apply to the transfer of a relevant undertaking or any part of it by virtue of arrangements mentioned                           in section 1 whether or not the relevant undertaking would otherwise be treated as an undertaking to whose transfer the regulations                           apply.                     

(2)For the purposes of the TUPE regulations, the services of the relevant employees are to be treated as a part of that undertaking                           to whose transfer the regulations apply whether or not the company which is to become their employer also provides defence                           procurement services by virtue of arrangements mentioned in section 1.                     

(3)In this section—                     
            -  “relevant undertaking”—  (a)
in relation to arrangements mentioned in section 1(1)(b), means DE&S;
(b)
in relation to arrangements mentioned in section 1(4)(b), means the departmental defence procurement undertaking;
 
            -  “relevant employees”—  (a)
in relation to arrangements mentioned in section 1(1)(b), means the persons employed in the civil service of the State mentioned                                       in section 1(1)(b);                                    
(b)
in relation to arrangements mentioned in section 1(4)(b), means the persons employed in the civil service of the State mentioned                                       in section 1(4)(b).                                    
 

#### 10Transfer schemesU.K.

(1)The Secretary of State may make one or more schemes for the transfer of property, rights and liabilities (a “transfer scheme”)                           if—                     

(a)a relevant contractor is in breach of a services contract and the breach occurs in specified circumstances or is of a specified                           kind, or                     

(b)a services contract has come to an end, whether by the expiry of the period for which it was in force or otherwise.                     

(2)A transfer scheme may provide for the transfer of property, rights and liabilities to—                     

(a)the Crown,                     

(b)the Secretary of State, or                     

(c)a company mentioned in section 1(2)(a).                     

(3)The property, rights and liabilities that may be transferred by a transfer scheme are—                     

(a)property, rights and liabilities of a relevant contractor;                     

(b)securities in a relevant contractor;                     

(c)any property or rights of a third party that was or were acquired from a relevant contractor and any liabilities of a third                           party so far as relating to any such property or rights.                     

(4)Subsection (3) does not apply to property, rights or liabilities to the extent that an agreement between the Secretary of                           State and the person entitled to or subject to them provides that they are not to be transferred by a transfer scheme.                     

(5)Schedule 3 makes further provision about transfer schemes under this section.                     

(6)In this section—                     
            -  “relevant contractor”, in relation to a services contract, means a company which is or was a contractor in relation to the arrangements to which                              that contract relates;                            
            -  “services contract” means a contract for a company to provide defence procurement services to the Secretary of State entered into by virtue                              of arrangements mentioned in section 1;                            
            -  “specified”, in relation to a services contract, means specified in the contract for the purposes of this section;                            
            -  “third party” means a person other than a relevant contractor.                            

### GeneralU.K.

#### 11Financial provisionsU.K.

There is to be paid out of money provided by Parliament any expenditure of the Secretary of State incurred—

(a)in connection with the formation of any company formed with a view to, or for any purpose of, the provision of defence procurement                           services or otherwise in connection with the establishment of arrangements mentioned in section 1;                     

(b)in assuming responsibility for any liabilities of a company which is or has been concerned in or in connection with the provision                           of defence procurement services which are liabilities arising out of the provision of such services or liabilities to or in                           respect of persons employed or formerly employed in or in connection with the provision of such services.                     

#### 12Interpretation of this PartU.K.

(1)In this Part—                     
            -  “company” means a company as defined in section 1(1) of the Companies Act 2006;                            
            -  “contractor” has the meaning given by section 1(8);                            
            -  “DE&S” has the meaning given by section 1(8);                            
            -  “defence procurement” has the meaning given by section 1(8);                            
            -  “defence procurement services” has the meaning given by section 1(8);                            
            -  “defence purposes” has the meaning given by section 1(8);                            
            -  “the departmental defence procurement undertaking” has the meaning given by section 1(8);                            
            -  “formed”, in relation to a company, includes the alteration of the company's articles so as to add, remove or alter a statement of                              the company's objects;                            
            -  “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;                            
            -  “property” includes interests of any description;                            
            -  “publicly owned company” means a company which is—                             (a)
a company limited by shares in which no one other than a relevant person holds any of the shares, or
(b)
a company limited by guarantee of which no one other than a relevant person is a member;
 
            -  the “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);                            
            -  “the vesting date” means a day appointed by the Secretary of State by order made by statutory instrument.                            

(2)In the definition of “publicly owned company” in subsection (1), “relevant person” means—                     

(a)a Minister of the Crown,                     

(b)a publicly owned company, or                     

(c)a nominee of a person falling within paragraph (a) or (b).                     

## **Part 2**U.K.Single source contracts

### Single Source Regulations OfficeU.K.

#### 13Single Source Regulations Office (or “SSRO”)U.K.

### Qualifying defence contractsU.K.

#### 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Pricing of contractsU.K.

#### 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 22Recovery of unpaid amountsU.K.

### TransparencyU.K.

#### 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 26Duty to report relevant events, circumstances and informationU.K.

#### 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Sub-contractsU.K.

#### 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### ComplianceU.K.

#### 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 34EnforcementU.K.

### SSRO: other functionsU.K.

#### 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 36Recording, review and analysis functionsU.K.

#### 37Provision of other services to Secretary of StateU.K.

### Disclosure of informationU.K.

#### 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### ReviewU.K.

#### 39Review of Part and regulations under itU.K.

#### 40Power to repeal PartU.K.

### GeneralU.K.

#### 41Single source contract regulations: time limits and determinationsU.K.

#### 42Single source contract regulations: generalU.K.

#### 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **Part 3**U.K.Reserve forces

### 44Renaming of Army Reserve and Territorial ArmyU.K.

### 45Call out of members of reserve forcesU.K.

### 46Payments to employers etc of members of reserve forcesU.K.

### 47Report on volunteer reserve forcesU.K.

### 48Unfair dismissal of reserve forces: no qualifying period of employmentU.K.

## **Part 4**U.K.Final provisions

### 49ExtentU.K.

(1)This Act extends to England and Wales, Scotland and Northern Ireland (subject to subsection (2)).                  

(2)The amendments and repeals made by Part 3 have the same extent as the provisions amended or repealed (ignoring extent by virtue                        of an Order in Council).                  

(3)The power conferred by section 158(3) of the Reserve Forces Act 1980 (power to extend to Isle of Man) is exercisable in relation                        to the amendments of that Act made by section 44.                  

(4)The power conferred by section 132(3) of the Reserve Forces Act 1996 (power to extend to Channel Islands and Isle of Man)                        is exercisable in relation to any amendment of that Act that is made by this Act.                  

(5)The power conferred by section 384(1) of the Armed Forces Act 2006 (power to extend to Channel Islands) is exercisable in                        relation to the amendments of that Act made by section 44.                  

### 50CommencementU.K.

(1)Parts 1 to 3 come into force on such day or days as the Secretary of State may by order made by statutory instrument appoint.                  

(2)An order under subsection (1) may appoint different days for different purposes.                  

(3)No statutory instrument containing an order under subsection (1) in respect of Part 1 (with or without provision under subsection                        (10)) is to be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of                        Parliament.                  

(4)Before a draft is laid before Parliament in accordance with subsection (3), the Secretary of State must—                  

(a)prepare and lay before Parliament a report on the options for carrying out defence procurement, and                  

(b)publish the report.                  

(5)A report on the options for carrying out defence procurement is a report about—                  

(a)the arrangements of a kind mentioned in section 1 that the Secretary of State proposes to make following the coming into force                        of that section, and                  

(b)any other options for carrying out defence procurement that the Secretary of State has considered as an alternative to those                        proposed arrangements.                  

(6)The report must include—                  

(a)an assessment of the impact of the proposed arrangements and the other options, and                  

(b)any other information the Secretary of State considers appropriate for the purpose of enabling a proper comparison to be made                        between the proposed arrangements and the other options.                  

(7)The report must deal with at least one other option under subsection (5)(b), namely the carrying out of defence procurement                        by the Secretary of State in the way it is carried out at the time of the report.                  

(8)In subsections (4) to (7) “defence procurement” has the meaning given by section 1(8).                  

(9)This Part comes into force on the day on which this Act is passed.                  

(10)The Secretary of State may by order made by statutory instrument make transitional, transitory or saving provision in connection                        with the coming into force of any provision of this Act.                  

(11)An order under subsection (10) may make different provision for different purposes.                  

### 51Short titleU.K.

This Act may be cited as the Defence Reform Act 2014.

# SCHEDULES

Prospective

 Section 4

## SCHEDULE 1U.K.Exemptions relating to premises used by a contractor

### IntroductionU.K.

1U.K.In this Schedule—
            -  “relevant premises” means any premises used by a contractor for the purposes of, or for purposes which include, providing defence procurement                              services to the Secretary of State by virtue of arrangements mentioned in section 1;                            
            -  “designated premises” means relevant premises which are for the time being designated for the purposes of a provision of this Schedule by order                              made by the Secretary of State.                            

### Landlord and Tenant Act 1954 (c. 56)U.K.

2U.K.Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business and other tenants) does not apply to—

(a)any tenancy granted by the Secretary of State to a contractor in respect of any land in relevant premises, or

(b)any sub-tenancy of the whole or part of the land comprised in such a tenancy or in a sub-tenancy to which this sub-paragraph                           applies.

### Nuclear Installations Act 1965 (c. 57)U.K.

3(1)For the purposes of sections 1 and 2 of the Nuclear Installations Act 1965 (restriction of certain installations to licensed                           sites and prohibition of certain operations), any site in designated premises is to be treated as a site used by a government                           department.U.K.

(2)Sub-paragraph (3) applies if a contractor uses any site in designated premises for a purpose which, if section 1 of that Act                           applied to the contractor in relation to the site, would require the authority of a nuclear site licence.

(3)The provisions of that Act other than sections 1 to 6 and 22 have effect as if—

(a)the contractor were the licensee under a nuclear site licence in respect of the site, and

(b)any reference to the period of the licensee's responsibility were a reference to any period during which the contractor occupies                           the site.

### Health and Safety at Work etc Act 1974 (c. 37)U.K.

4(1)The Secretary of State may by order exempt a contractor, in relation to relevant premises or activities carried on by a contractor                           at relevant premises, from any of the following—U.K.

(a)sections 21 to 25 of the Health and Safety at Work etc Act 1974;

(b)any other provision of Part 1 of that Act;

(c)any provision of regulations made under that Part.

(2)But an exemption may be conferred by virtue of sub-paragraph (1)(b) or (c) only if, and to the extent that, it appears to                           the Secretary of State necessary or expedient to do so in the interests of the safety of the State.

(3)An exemption conferred by virtue of sub-paragraph (1)—

(a)may have effect generally or only in particular respects;

(b)may be expressed as having effect in relation to premises for the time being specified in the order.

### Radioactive Substances Act 1993 (c. 12)U.K.

5U.K.The Radioactive Substances Act 1993 has effect, in relation to designated premises and a contractor, as if the designated                           premises were occupied by the contractor on behalf of the Crown for the purposes of the department of the Secretary of State                           having responsibility for defence.

### [F1Environmental Permitting (England and Wales) Regulations 2016]U.K.

Textual Amendments

F1 Sch. 1 para. 6 cross-heading substituted (E.W.) (1.1.2017) by The Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154), reg. 1(1), **Sch. 29 Pt. 1 para. 20(a)** (with regs. 1(3), 77-79, Sch. 4)

6U.K.[F2The Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154)] have effect, in relation to designated premises and a contractor, as if the designated premises were used or occupied by                           the contractor on behalf of the Crown for the purposes of the department of the Secretary of State having responsibility for                           defence.

Textual Amendments

F2Words in Sch. 1 para. 6 substituted (E.W.) (1.1.2017) by The Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154), reg. 1(1), **Sch. 29 Pt. 1 para. 20(b)** (with regs. 1(3), 77-79, Sch. 4)

### Power to create other exemptionsU.K.

7(1)The Secretary of State may by order provide for exemptions for a contractor, in relation to relevant premises or activities                           carried on by a contractor at relevant premises, from any provision of subordinate legislation.U.K.

(2)An order under this paragraph may confer an exemption only if the exemption corresponds or is similar to an exemption for,                           or immunity of, the Crown.

(3)An exemption conferred by virtue of sub-paragraph (1)—

(a)may have effect generally or only in particular respects;

(b)may be expressed as having effect in relation to premises for the time being specified in the order.

(4)In this paragraph “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (see section 21(1) of that Act).

### Orders under this ScheduleU.K.

8(1)Orders under this Schedule are to be made by statutory instrument.U.K.

(2)A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of either                           House of Parliament.

Prospective

 Section 7

## SCHEDULE 2U.K.Restrictions on disclosure or use of information

### IntroductionU.K.

1(1)This Schedule applies where the disclosure or use of relevant information is restricted by an obligation of confidence.U.K.

(2)In this Schedule, “relevant information” means information obtained by the Secretary of State (whether before or after the coming into force of this Schedule) under                           or in connection with a relevant contract.

(3)“Relevant contract” means a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence                           procurement.

### Disclosure between the parties etcU.K.

2(1)The obligation does not prevent or penalise the disclosure of relevant information—U.K.

(a)between the Secretary of State or an authorised officer of the Secretary of State and a contractor or an employee of or service                           provider to a contractor,

(b)between a contractor and an employee of or service provider to the contractor, between one such employee and another, between                           one such service provider and another or between one such employee and one such service provider, or

(c)between a contractor or an employee of or service provider to the contractor and another contractor or an employee of or service                           provider to the other contractor,

if the disclosure is necessary or expedient for the purposes of arrangements mentioned in section 1.

(2)The obligation does not prevent or penalise the disclosure of relevant information—

(a)by a former contractor or an employee of or service provider to a former contractor to the Secretary of State or an authorised                           officer of the Secretary of State,

(b)by a former contractor or an employee of or service provider to a former contractor to a contractor or an employee of or service                           provider to a contractor, or

(c)between a former contractor and an employee of or service provider to the former contractor, between one such employee and                           another, between one such service provider and another or between one such employee and one such service provider,

if the disclosure is necessary or expedient for the purposes of arrangements mentioned in section 1.

(3)The obligation does not prevent or penalise the use of relevant information disclosed to a contractor or an employee of or                           service provider to a contractor under this paragraph if—

(a)the information is used by the contractor or the employee or service provider for any purpose for which the Secretary of State                           could have used the information, and

(b)the use of the information is necessary or expedient for the purposes of arrangements mentioned in section 1.

### Disclosure and use for audit purposesU.K.

3(1)The obligation does not prevent or penalise the disclosure of relevant information by a contractor or an employee of or service                           provider to a contractor, or the use of that information by the person to whom it is disclosed, if—U.K.

(a)the disclosure is to the Comptroller and Auditor General, or a person exercising an audit function of the Comptroller's, and                           the information could lawfully be disclosed to the Comptroller or that person by the Secretary of State, or

(b)the disclosure is to an accounting officer, or a person exercising an audit function of the officer's, and the information                           could lawfully be disclosed to that officer or person by the Secretary of State.

(2)In this paragraph—
            -  “accounting officer” means an officer appointed by the Treasury under section 5(6) or (8) of the Government Resources and Accounts Act 2000 (resource                              accounts);                            
            -  “audit function” in relation to the Comptroller and Auditor General, includes any function under Part 2 of the National Audit Act 1983 (examinations                              into economy, efficiency and effectiveness).                            

### Unauthorised disclosure of informationU.K.

4(1)This paragraph applies where—U.K.

(a)information is disclosed to a person in accordance with paragraph 2 or 3 (“the original disclosure”), and

(b)that person, or any other person to whom the information is subsequently so disclosed, discloses the information otherwise                           than in accordance with paragraph 2 or 3 (“the unauthorised disclosure”).

(2)The person making the unauthorised disclosure is to be treated for all purposes as if that person were subject to the obligation                           which restricted the original disclosure.

(3)But where the person making the unauthorised disclosure is an employee, the information is to be treated as if it had been                           disclosed by the person's employer.

### Unauthorised use of informationU.K.

5(1)This paragraph applies where—U.K.

(a)information is disclosed in accordance with paragraph 2 to a person other than the Secretary of State or an authorised officer                           of the Secretary of State, and

(b)the information is used by that person otherwise than in accordance with paragraph 2(3) (“the unauthorised use”).

(2)The person making the unauthorised use is to be treated for all purposes as if that person were subject to the obligation                           which restricted the use of the information by the Secretary of State.

(3)But where the person making the unauthorised use is an employee, the information is to be treated as if it had been used by                           the person's employer.

### Interpretation: generalU.K.

6U.K.In this Schedule—
            -  “ancillary services” means services certified by the Secretary of State to be services appearing to the Secretary of State to be calculated to                              facilitate, or to be conducive or incidental to, arrangements mentioned in section 1;                            
            -  “authorised officer”, in relation to the Secretary of State, means an officer of the Secretary of State who is authorised by the Secretary of                              State to disclose or (as the case may be) obtain the information in question;                            
            -  “former contractor” means a company which has been a contractor;                            
            -  “relevant information” has the meaning given by paragraph 1(2);                            
            -  “service provider”, in relation to a contractor or former contractor, means—                             (a)
a person who performs ancillary services for that contractor, and
(b)
an employee of such a person.
 

Prospective

 Section 10

## SCHEDULE 3U.K.Transfer schemes under section 10

### Transfer of property, rights and liabilitiesU.K.

1(1)On the transfer date, the designated property, rights and liabilities that are to be transferred from the transferor to the                           transferee are transferred and vest in accordance with the transfer scheme.U.K.

(2)The rights and liabilities that may be transferred by a transfer scheme include those arising under or in connection with                           a contract of employment.

(3)A certificate by the Secretary of State that anything specified in the certificate has vested in a person by virtue of a transfer                           scheme is conclusive evidence of that fact for all purposes.

### Provision that may be made by a transfer schemeU.K.

2(1)A transfer scheme may make provision—U.K.

(a)for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by                           the scheme to be treated as done, or to be continued, by or in relation to the transferee;

(b)for references to the transferor in any agreement (whether written or not), instrument or other document relating to any property,                           rights or liabilities transferred by the scheme to be treated as references to the transferee;

(c)about the continuation of legal proceedings;

(d)for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

(e)for transferring property, rights and liabilities irrespective of any requirement for consent which would otherwise apply;

(f)for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right                           from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

(g)for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

(h)for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

(i)for apportioning property, rights or liabilities;

(j)for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

(k)for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance                           with the scheme;

(l)which is the same as or similar to that made by the TUPE regulations, in a case where those regulations do not apply in relation                           to the transfer.

(2)Sub-paragraph (1)(b) does not apply to references in primary legislation or subordinate legislation.

### CompensationU.K.

3U.K.A transfer scheme may contain provision for the payment of compensation by the Secretary of State to any person whose interests                           are adversely affected by it.

### Foreign propertyU.K.

4(1)Where a transfer scheme transfers foreign property or a foreign right or liability, the transferor and the transferee must                           take all necessary steps to ensure that the vesting of the foreign property, right or liability in the transferee by this                           Schedule is effective under the applicable foreign law.U.K.

(2)Until the vesting of the foreign property, right or liability is effective under the applicable foreign law, the transferor                           must—

(a)hold the property or right for the benefit of the transferee, or

(b)discharge the liability on behalf of the transferee.

(3)Nothing in sub-paragraph (1) or (2) prejudices the effect under the law of a part of the United Kingdom of the vesting of                           any foreign property, right or liability in the transferee in accordance with a transfer scheme.

(4)Where—

(a)any foreign property, right or liability is acquired or incurred by the transferor in respect of any other property, right                           or liability, and

(b)by virtue of this paragraph, the transferor holds the other property or right for the benefit of another person or is required                           to discharge the liability on behalf of another person,

the property, right or liability acquired or incurred immediately becomes the property, right or liability of that other person.

(5)Sub-paragraphs (1) to (4) have effect in relation to foreign property, rights or liabilities transferred to a person under                           sub-paragraph (4) as they have effect in relation to property, rights or liabilities transferred in accordance with a transfer                           scheme.

(6)References in this paragraph to foreign property, or to a foreign right or liability, are references to any property, right                           or liability as respects which an issue arising in any proceedings would be determined (in accordance with the rules of private                           international law) by reference to the law of a country or territory outside the United Kingdom.

(7)Expenses incurred by a transferor under this paragraph must be met by the transferee.

(8)An obligation imposed under this paragraph in relation to property, rights or liabilities is enforceable as if contained in                           a contract between the transferor and the transferee.

### Incidental etc provisionU.K.

5U.K.A transfer scheme may—

(a)include incidental, supplementary and consequential provision;

(b)make transitory or transitional provision or savings;

(c)make different provision for different purposes;

(d)make provision subject to exceptions.

### Modification of transfer schemesU.K.

6(1)The Secretary of State may modify a transfer scheme.U.K.

(2)But if a transfer under the scheme has taken effect, any modification that relates to the transfer may be made only with the                           agreement of the person affected by the modification.

(3)A modification takes effect from a date specified by the Secretary of State (which may be the date the original scheme came                           into effect).

### Interpretation etcU.K.

7U.K.In this Schedule—
            -  “designated”, in relation to a transfer scheme, means specified in or determined in accordance with the scheme;                            
            -  “primary legislation” means—                             (a)
an Act of Parliament,
(b)
an Act of the Scottish Parliament,
(c)
an Act or Measure of the National Assembly for Wales, or
(d)
Northern Ireland legislation;
 
            -  “subordinate legislation” means—                             (a)
subordinate legislation within the meaning of the Interpretation Act 1978 (see section 21(1) of that Act), or
(b)
an instrument made under primary legislation of the kind mentioned in paragraph (b), (c) or (d) of the definition of primary                                       legislation above;                                    
 
            -  “the transfer date” means a date specified by a transfer scheme as the date on which the scheme is to have effect;                            
            -  “transferee”, in relation to a transfer scheme, means a person who is a transferee in respect of property, rights or liabilities for                              whose transfer the scheme provides;                            
            -  “transferor”, in relation to a transfer scheme, means the person for the transfer of whose property, rights or liabilities the scheme                              provides.                            

 Section 13

## SCHEDULE 4U.K.Single Source Regulations Office

### MembershipU.K.

1(1)The SSRO is to consist of the following members—U.K.

(a)a chair appointed by the Secretary of State,

(b)at least two other members so appointed, and

(c)a chief executive, a chief operating officer and other members appointed in accordance with paragraph 2.

(2)The number of executive members must be less than the number of non-executive members.

(3)In this Schedule—

(a)references to “non-executive members” of the SSRO are to the members mentioned in sub-paragraph (1)(a) and (b), and

(b)references to “executive members” of the SSRO are to the chief executive, the chief operating officer and the other members                        mentioned in sub-paragraph (1)(c).

### Executive members: appointment and statusU.K.

2(1)The executive members of the SSRO are to be appointed by the non-executive members.U.K.

(2)A person may not be appointed as an executive member without the consent of the Secretary of State.

(3)The executive members are to be employees of the SSRO.

### Non-executive members: tenureU.K.

3(1)A person holds and vacates office as a non-executive member of the SSRO in accordance with the terms and conditions of his                        or her appointment.U.K.

(2)Appointment as a member of the SSRO is for a term of—

(a)not less than three years, and

(b)not more than six years.

(3)A person may at any time resign from office as a non-executive member by giving notice to the Secretary of State.

(4)The Secretary of State may at any time remove a member from office on any of the following grounds—

(a)incapacity;

(b)misconduct (which may include breach of a term or condition of the member's appointment);

(c)failure to carry out his or her duties.

(5)The Secretary of State may suspend a person from office as a non-executive member if it appears to the Secretary of State                        that there are or may be grounds to remove the person from office under sub-paragraph (4).

(6)A person who ceases to be a non-executive member is eligible for reappointment.

### Suspension from officeU.K.

4(1)This paragraph applies where a person is suspended under paragraph 3(5).U.K.

(2)The Secretary of State must give notice of the decision to the person; and the suspension takes effect on receipt by the person                        of the notice.

(3)The notice may be—

(a)delivered in person (in which case, the person is taken to receive it when it is delivered), or

(b)sent by first-class post to the person's last known address (in which case, the person is taken to receive it on the third                        day after the day on which it is posted).

(4)The initial period of suspension must not exceed six months.

(5)The Secretary of State may at any time review the suspension.

(6)The Secretary of State—

(a)must review the suspension if requested in writing by the person to do so, but

(b)need not review the suspension less than three months after the beginning of the initial period of suspension.

(7)Following a review during a period of suspension, the Secretary of State may—

(a)revoke the suspension, or

(b)suspend the person for another period of not more than six months from the expiry of the current period.

(8)The Secretary of State must revoke the suspension if the Secretary of State decides—

(a)that there are no grounds to remove the person from office under paragraph 3(4), or

(b)that there are grounds to do so but does not remove the person from office under that provision.

5(1)Where a person is suspended from office as the chair under paragraph 3(5), the Secretary of State may appoint a non-executive                        member as interim chair to exercise the chair's functions.U.K.

(2)Appointment as interim chair is for a term not exceeding the shorter of—

(a)the period ending with either—

(i)the appointment of a new chair, or

(ii)the revocation or expiry of the existing chair's suspension, and

(b)the remainder of the interim chair's term as a non-executive member.

(3)A person who ceases to be the interim chair is eligible for reappointment.

### Payment of non-executive membersU.K.

6U.K.The SSRO may, with the approval of the Secretary of State—

(a)pay remuneration and allowances to the non-executive members, and

(b)pay or provide for the payment of pensions, allowances and gratuities to or in respect of a person who is or has been a non-executive                        member of the SSRO.

### Staff etcU.K.

7(1)The SSRO may appoint employees.U.K.

(2)The SSRO may pay its employees remuneration and allowances.

(3)Employees of the SSRO are to be appointed on such other terms and conditions as the SSRO may determine.

(4)The SSRO may pay or provide for the payment of pensions, allowances and gratuities to or in respect of any person who is or                        has been an employee of the SSRO.

8(1)The SSRO may make arrangements—U.K.

(a)for persons to provide professional services to the SSRO;

(b)for persons to be seconded to the SSRO.

(2)The arrangements may, with the approval of the Secretary of State, include provision for payments by the SSRO.

### SuperannuationU.K.

9(1)In Schedule 1 to the Superannuation Act 1972 (kinds of employment to which a scheme under section 1 of that Act can apply),                        at the end of the list of “Other Bodies” insert— “ Single Source Regulations Office. ”U.K.

(2)The SSRO must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister                        may determine in respect of any increase attributable to sub-paragraph (1) in the sums payable out of money provided by Parliament                        under the Superannuation Act 1972.

### ProcedureU.K.

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### CommitteesU.K.

11(1)The SSRO—U.K.

(a)may appoint committees, and

(b)may determine the procedure of its committees (subject to paragraph 10).

(2)A committee may include persons who are not members or employees of the SSRO.

(3)The SSRO may pay remuneration and allowances to any person who—

(a)is a member of a committee, but

(b)is not an employee of the SSRO,

whether or not that person is a non-executive member of the SSRO.

### Accounts and auditU.K.

12(1)The SSRO must—U.K.

(a)keep proper accounts and proper records in relation to them, and

(b)prepare a statement of accounts in respect of each financial year.

(2)The Secretary of State may give directions to the SSRO about—

(a)the content and form of the statement, and

(b)the methods and principles to be applied in preparing it.

(3)The SSRO must send each statement to the Comptroller and Auditor General within such period after the end of the financial                        year to which the accounts relate as the Secretary of State may direct.

(4)The Comptroller and Auditor General must—

(a)examine, certify and report on each statement, and

(b)send a copy of each report and certified statement to the Secretary of State.

### Annual reportU.K.

13(1)The SSRO must prepare a report on its activities during each financial year.U.K.

(2)The report must include the statement of accounts in respect of that year.

(3)The report relating to a financial year must be prepared as soon as possible after the end of the financial year.

(4)The SSRO must send the report to the Secretary of State.

(5)The Secretary of State must lay the report before Parliament.

### PowersU.K.

14(1)The SSRO may do anything which is calculated to facilitate the carrying out of its functions or which is incidental to or                        conducive to the carrying out of those functions; but this is subject to sub-paragraph (2).U.K.

(2)The SSRO may not borrow money, other than temporarily by way of overdraft up to a limit approved by the Secretary of State.

### Seal and evidenceU.K.

15(1)The application of the SSRO's seal must be authenticated by the signature of the chief executive or any other member of the                        SSRO who has been authorised (generally or specifically) for that purpose.U.K.

(2)A document purporting to be duly executed under the SSRO's seal or signed on its behalf—

(a)is to be received in evidence, and

(b)is to be taken to be executed or signed in that way, unless the contrary is proved.

### FinanceU.K.

16(1)The Secretary of State may make to the SSRO such payments out of money provided by Parliament as the Secretary of State considers                        appropriate.U.K.

(2)Payments under sub-paragraph (1) may be made at such times, and subject to such conditions, as the Secretary of State considers                        appropriate.

### StatusU.K.

17(1)The SSRO is not to be regarded—U.K.

(a)as the servant or agent of the Crown, or

(b)as enjoying any status, immunity or privilege of the Crown.

(2)The SSRO's property is not to be regarded as property of, or property held on behalf of, the Crown.

(3)Service as a member or employee of the SSRO is not service in the civil service of the State.

### Parliamentary CommissionerU.K.

18U.K.In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation), at the appropriate place                        insert— “ Single Source Regulations Office. ”

### DisqualificationU.K.

19U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

### Freedom of informationU.K.

21U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 38

## SCHEDULE 5U.K.Restrictions on disclosing information

### Information to which Schedule appliesU.K.

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Offence of disclosing informationU.K.

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Disclosure with consentU.K.

3U.K.Paragraph 2(1) does not apply to a disclosure made with the consent of—

(a)the individual, or

(b)the person for the time being carrying on the business (or, where there are two or more such persons, all those persons).

### Disclosure of information already available to publicU.K.

4U.K.Paragraph 2(1) does not apply to information that has been made available to the public by being disclosed in circumstances                        in which, or for a purpose for which, disclosure is not precluded by this Schedule.

### Other permitted disclosuresU.K.

5(1)Paragraph 2(1) does not apply where information is disclosed—U.K.

(a)for the purpose of facilitating the carrying out of functions of a Minister of the Crown (within the meaning of the Ministers                        of the Crown Act 1975),

(b)for the purpose of facilitating the carrying out by the SSRO of any of its functions,

(c)for the purpose of enabling or assisting an authorised person to carry out any of its functions,

(d)for the purpose of enabling or assisting a contractor to provide defence procurement services to the Secretary of State by                        virtue of arrangements mentioned in section 1,

(e)to the person from whom the information was obtained or, where that person is associated with one or more other persons, to                        any such associated person,

(f)by a person to whom the information is disclosed by virtue of paragraph (e),

(g)in response to a request under the Freedom of Information Act 2000,

(h)in connection with the investigation of a criminal offence or for the purposes of criminal proceedings,

(i)for the purposes of civil proceedings,

(j)in pursuance of an EU obligation,

(k)for the purpose of facilitating the carrying out by the Comptroller and Auditor General of functions, or

(l)in anonymised form.

(2)In sub-paragraph (1)(d), “contractor” and “defence procurement services” have the same meanings as in Part 1.

(3)For the purposes of sub-paragraph (1)(l), information is disclosed in anonymised form if no individual or other person to                        whom the information relates can be identified from it.

### Power to prohibit disclosureU.K.

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

 Section 45

## SCHEDULE 6U.K.Call out of members of reserve forces: transitional classes

1U.K.The Reserve Forces Act 1996 is amended as follows.

2(1)Section 129 (application of Act to persons currently serving in the reserve forces or regular services) is amended as follows.U.K.

(2)In subsection (1), for “the transitional class” substitute “— 

(a)the original transitional class (see Parts 1 and 2 of that Schedule), or                  

(b)the second transitional class (see Parts 3 and 4 of that Schedule)”.                  

(3)In subsection (2), for “the transitional class” (in both places) substitute “ the original transitional class ”.

(4)In subsection (3)—

(a)for “In this Act “the transitional class”” substitute “In this Act— 

the original transitional class””, and                  

(b)at the end insert—

““the second transitional class”, in relation to members of the reserve forces, shall be construed in accordance with Part 3 of Schedule 9.”                  

3U.K.In the heading of that section, for “persons currently serving in the reserve forces or regular services” substitute “ members of transitional classes ”.

4(1)Schedule 9 (application of Act to transitional members) is amended as follows.U.K.

(2)In the heading of Part 1, for “transitional class” substitute “ original transitional class ”.

(3)In paragraphs 1(1) and (2) and 6, for “transitional class” substitute “ original transitional class ”.

(4)In paragraph 4(2), after “may” insert “ at any time ”.

(5)In the heading of Part 2, for “transitional class” substitute “ original transitional class ”.

(6)After paragraph 12 insert—

“12AIn the application of section 28(3)(a) to a special agreement entered into by a transitional member, for the reference to                           a period not exceeding 12 months there shall be substituted a reference to a period not exceeding 9 months.”

(7)At the end insert—

### **“Part 3**U.K.The second transitional class of members of the reserve forces

25(1)The second transitional class consists of persons who—                  

(a)are members of a reserve force,                  

(b)are not, and have not been, members of the original transitional class,                  

(c)for the time being fall within paragraph 26 or 27, and                  

(d)have not made an election under paragraph 28.                  

(2)In this Part of this Schedule “the appointed day” means the day on which paragraph 4(7) of Schedule 6 to the Defence Reform Act 2014 (which inserts this Part of this Schedule)                           comes into force.                  

26A person who, immediately before the appointed day, was a member of a reserve force falls within this paragraph if—

(a)the person has remained a member of that force without interruption since that time, and                  

(b)the person has not extended his or her service in, or become an officer of, that force since that time.                  

27A person who becomes a member of a reserve force on or after the appointed day, on transfer to the reserve from the regular                           services, falls within this paragraph if—

(a)the person joined the regular services before the appointed day and did not re-enlist, re-engage or extend his or her service,                           or become an officer, in the regular services on or after that day,                  

(b)the person has remained a member of the reserve force concerned without interruption since being transferred from the regular                           services, and                  

(c)the person has not extended his or her service in, or become an officer of, that force since being so transferred.                  

28(1)A person who is a member of the second transitional class may elect to cease to be a member of that class.                  

(2)A person serving in the regular services who—                  

(a)joined those services before the appointed day, and                  

(b)has not re-enlisted, re-engaged or extended his or her service, or become an officer, on or after that day,                  

may at any time elect not to become a member of the second transitional class on transfer to the reserve.                  

(3)An election under this paragraph must be made in the prescribed manner.                  

(4)A person who has made an election under sub-paragraph (1) ceases to be a member of the second transitional class.                  

(5)A person who has made an election under sub-paragraph (2) does not become a member of the second transitional class.                  

(6)An election under this paragraph is irrevocable.                  

### **Part 4**U.K.Application of Act to members of the second transitional class

29Parts 4 and 6 of this Act apply in relation to members of the second transitional class in accordance with this Part of this                           Schedule.

30Section 28(3)(a) (special agreements: maximum period of service) applies in relation to a special agreement entered into by                           a member of the second transitional class as if for “12 months” there were substituted “ 9 months ”.

31(1)Section 56 (call out for certain purposes) applies in relation to the call out of members of the second transitional class                           as if the power conferred on the Secretary of State by subsection (1B) were limited to the powers described in sub-paragraphs                           (2) and (3).                  

(2)The first power is to make an order authorising the calling out of members of a reserve force where it appears to the Secretary                           of State that it is necessary or desirable to use armed forces—                  

(a)on operations outside the United Kingdom for the protection of life or property, or                  

(b)on operations anywhere in the world for the alleviation of distress or the preservation of life or property in time of disaster                           or apprehended disaster.                  

(3)The second power is to make an order authorising the calling out of members of a reserve force for the purposes of carrying                           out work where—                  

(a)the work is approved in accordance with instructions issued by the Defence Council under the Defence (Armed Forces) Regulations                           1939 as being urgent work of national importance, and                  

(b)the Defence Council have by order under those Regulations authorised members of any forces to be temporarily employed in such                           work.                  

32Section 57 (maximum duration of service for call out under section 56) applies in relation to members of the second transitional                           class as if—

(a)in subsection (4), for “12 months” there were substituted “ 9 months ”,                  

(b)in subsection (6), for “12 months” there were substituted “ 9 months ”,                  

(c)in subsection (8)(c), for “6 months” there were substituted “ 3 months ”, and                  

(d)in subsection (11), for “3 years” there were substituted “ 27 months ”.                  

33Section 57A(3) (agreement to alter limits in section 57) applies in relation to members of the second transitional class as                           if for “12 months” there were substituted “ 9 months ”.”

5U.K.In the heading of Schedule 9, for “transitional members” substitute “ members of transitional classes ”.

 Section 46

## SCHEDULE 7U.K.Payments to employers etc of members of reserve forces: supplementary

### Reserve Forces Act 1996 (c. 14)U.K.

1U.K.The Reserve Forces Act 1996 is amended as follows.

2U.K.In the heading before section 83, for “call out or recall” substitute “ reserve forces ”.

3U.K.In the headings of sections 83 and 84, after “in respect of” insert “ financial loss attributable to ”.

4(1)Section 85 (regulations under section 83 or 84: supplementary) is amended as follows.U.K.

(2)In subsection (1)—

(a)for “or 84” substitute “ , 84 or 84A ”,

(b)in paragraph (a), omit “and of the kinds of financial loss for which claims can be made”,

(c)after that paragraph insert—

“(aa)in the case of regulations under section 83 or 84, the descriptions of the kinds of financial loss for which claims can be                           made;                  

(ab)in the case of regulations under section 84A, the descriptions of the kinds of training and other voluntary duties for which                           claims can be made;”, and                  

(d)in paragraph (f), after “84” insert “ or 84A ”.

(3)In subsection (2), after “losses” insert “ , permanent service, training or other voluntary duties ”.

(4)In subsection (3), for “or 84” substitute “ , 84 or 84A ”.

(5)After that subsection insert—

“(3A)A payment that has been made, or may be made, under regulations under section 84A is not to be taken into account when calculating                           a financial loss for the purposes of regulations under section 84.”                  

(6)In subsection (5), for “The regulations” substitute “ Regulations under section 83 or 84 ”.

5U.K.Accordingly, in the heading of section 85, for “or 84” substitute “ , 84 or 84A ”.

6(1)Section 86 (power to suspend payments due to national danger or great emergency) is amended as follows.U.K.

(2)Before subsection (1) insert—

“(A1)Where a call-out order under section 52 is in force, the Secretary of State may by order suspend the operation of any regulations                           under section 83, 84 or 84A.”                  

(3)In subsection (1), omit “a call-out order under section 52 or”.

(4)In subsection (2)—

(a)for “subsection (1)” substitute “ this section ”, and

(b)in paragraph (a), after “recalled” insert “ or who are already undertaking training or performing other voluntary duties ”.

(5)In subsections (3), (4) and (5), for “subsection (1)” substitute “ this section ”.

7U.K.In section 87 (offences in connection with claims for payments), in subsections (1) and (2), for “or 84” substitute “ , 84 or 84A ”.

8U.K.In section 89(2) (jurisdiction and powers of reserve forces appeal tribunal)—

(a)for “and 84(3)” substitute “ , 84(3) and 84A(6) ”, and

(b)for “and 84” substitute “ , 84 and 84A ”.

9U.K.In Schedule 9 (application of Act to transitional members), in paragraph 19, for “or 84” substitute “ , 84 or 84A ”.

### Transitional provisionU.K.

10U.K.In paragraphs 11 and 12, “a section 84A offence” means an offence under section 87(2) of the Reserve Forces Act 1996 (as amended by this Schedule) in connection with a claim                        under regulations under section 84A of that Act.

11U.K.A section 84A offence is to be treated for the purposes of section 281(4) and (5) of the Criminal Justice Act 2003 (maximum                        term of imprisonment for summary offence) as an offence under a relevant enactment (as defined in section 281(7) of that Act).

12(1)This paragraph applies if section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (“the 2012 Act”) comes into force on or before the day on which this Act is passed.U.K.

(2)Section 85 of the 2012 Act (removal of limit on certain fines on conviction by magistrates' courts) applies in relation to                        a section 84A offence on and after that day as if the offence was a relevant offence punishable immediately before the commencement                        day by a maximum fine of level 5 on the standard scale.

(3)Regulations described in section 85(11) of the 2012 Act may amend, repeal or otherwise modify provisions of the Reserve Forces                        Act 1996 as amended by this Act.

(4)In this paragraph “commencement day” and “relevant offence” have the same meaning as in section 85 of the 2012 Act.