Commentary on Sections Schedule 6: Call out of members of reserve forces: transitional classes Section 46: Payments to employers etc of members of reserve forces
157.Section 84 of the 1996 Act gives the Secretary of State a power to make regulations which provide for the making of payments by him to employers in respect of financial loss suffered by them and attributable to any of their employees being called out or recalled for service. Regulations under section 84 may also provide for the making of payments to the partners of a person carrying on business in partnership in respect of financial loss suffered by them and attributable to that person being called out or recalled for service. Section 83 of the 1996 Act gives the Secretary of State a power to make regulations which provide for the making of payments by him to any persons in respect of financial loss suffered by them and attributable to their being called out or recalled for service. The Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 2005 (SI 2005/859) were made in exercise of the powers conferred by sections 83 and 84 of the 1996 Act.
158.The purpose of section 46 is to allow the Secretary of State, by regulations, to provide for the making of additional payments to employers whose reservist employees are called out, undertake certain training or perform certain other duties. Such regulations may also provide for the making of payments to persons carrying on business in partnership whose partners in that business are called out, undertake certain training or perform certain other duties. Accordingly, section 46(1) inserts new section 84A into the 1996 Act.
159.The effect of subsection (3) of the new section 84A is that regulations made under that section may only provide for the making of such payment to employers or partners as the Secretary of State considers would (or would, in combination with other measures) be likely to encourage people to employ members of reserve forces or to carry on business in partnership with them. The new section 84A does not enable payments to be made in respect of training undertaken, or any other voluntary duties performed, by special members of a reserve force (also known as “Sponsored Reserves” (see the references in subsection (2)(b) and (c) to an “ordinary member” of reserve force and the definition of that term in subsection (7)).
160.Subsection (5) of new section 84A ensures that regulations made under new section 84A may not provide for the same kind of actual financial loss recovery scheme as may be provided for in regulations under section 84. It also ensures that payments may be made to an employer (or person in partnership) under regulations under new section 84A in respect of relevant reserve force activities whether or not the employer (or person in partnership) has suffered financial loss as a result of those activities.
161.A person making a claim under regulations under section 83 or 84 of the 1996 Act who is dissatisfied with the determination of their claim may appeal to a reserve forces appeal tribunal (Part 9 of the 1996 Act makes provision with respect to these tribunals). Subsection (6) of new section 84A provides for the same route of appeal against any determination of a claim under regulations under new section 84A.