• 02 SEP 14
    Mixed response to Defence Reform Act 2014

    Mixed response to Defence Reform Act 2014

    New rules aimed at giving firms a greater incentive to employ members of the reserved forces will come into force from October 1, 2014.

    The Defence Reform Act 2014 will increase the amount of money businesses are able to claim back in relation to an employee who is a member of the reserved forces.

    The new law means that small to medium-sized employers of reservists will be able to claim monthly payments of £500 for each full month of the mobilised reservists absence from work assuming that they are on a full-time contract and work at least 35 hours per week.

    This is in addition to the daily award of up to £110 that firms can currently claim with regards to the replacement costs incurred when a reservist is called out to service.

    The new rules will also extend the period of mobilisation from nine to twelve months, meaning employers could have to bring in temporary staff for prolonged periods.

    While the changes will increase the financial support available to employers, the law could also cause concern due to the removal of the statutory qualifying period for unfair dismissal.

    This change relates to cases where the dismissal is in connection with the employee’s membership of the armed forces, however it only applies when the termination of employment falls on or after October 1, 2014.

    The Defence Reform Act 2014 amends section 108 of the Employment Law Act 1996 and relates to any member of a reserved force (the Territorial Army, Royal Naval Reserve, Royal Marines Reserve or Royal Auxiliary Air Force).

    For more information about the new military reservist rules or to discuss any aspect of employment law, contact Michael Shroot on michael.shroot@whnsolicitors.co.uk or 0161 761 8087.