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Volume 449: debated on Monday 24 July 2006

To ask the Secretary of State for Defence if he will take steps to compensate and support small and medium-sized enterprises with key members of staff serving as called up reservists fulfilling long-term postings; and if he will make a statement. (87914)

The Reserve Forces Act 1996 allows payments to Reservists and/or their employers when the former are called out into permanent service. The detailed regulations are set out in a Statutory Instrument (SI 859), which came into force in April 2005.

Under these regulations employers can claim up to £110 per day (approximately £40,000 per year) to cover certain additional costs arising from their employee’s absence. Employers may also claim certain one-off costs such as agency fees and re-training costs.