DEFENCE PART I PRELIMINARY 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 ; “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— 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 if— the reservist began employment with an employer on a day less than 52 weeks before the relevant date, or 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— salary, wages, fees, drawings and gratuities payable to a reservist; service pay payable to a reservist for service other than relevant service, but does not include— 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; the value of or payments in respect of any motor vehicle provided by the reservist’s employer and available for the private use of him, his spouse or dependants; “employer” means any person who is an employer of a reservist on the relevant date and includes— a reservist who is self-employed; a partnership within the meaning of the Partnership Act 1890 of which the reservist is a partner; a company of which the reservist is a director other than a non-executive director; a Secretary of State or government department or any officer or body exercising on behalf of the Crown functions conferred by any statute, for whom a reservist works as a Crown servant; “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— under Part IV of the 1996 Act; in relation to a claim by a reservist under regulation 3 or 4 below, under Part V of the 1996 Act; under a call-out or recall order; by a person called out or recalled under the 1980 Act or under any other call-out or recall obligations of an officer, 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 II BASIS 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 III BASIS 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 IV PROCEDURE 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 V MISCELLANEOUS 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. Nicholas Soames Minister of State, Ministry of Defence 19th February 1997