Rights and responsibilities for reservists and employers
5. Financial support for employers
You can claim financial support if a reservist you employ is called up.
Don’t pay their salary or pension contributions while they’re away - the Ministry of Defence (MOD) pays these costs. You’ll need to make changes in your payroll system.
You can apply to delay or cancel mobilisation if it will seriously harm your business.
What you can get
You can claim financial assistance to cover:
- the cost of a temporary replacement if it’s more than the reservist’s salary (up to £110 a day)
- advertising costs and agency fees for finding a replacement
- a period of handover and takeover (5 days before and after mobilisation)
- 75% of the cost of specialist clothing for the replacement (up to £300)
- training costs for the replacement (up to £2,000)
- overtime, if other employees cover the work
- training the reservist needs to carry on their job when they return
Extra support for small and medium-sized businesses
You can claim £500 a month in addition to the costs of replacing and retraining the reservist unless both of the following apply:
- your annual turnover was more than £25.9 million in the 12 months before the reservist was called up
- you had more than 250 employees or partners on the date of mobilisation
These are known as employer incentive payments.
What you can’t claim for
You can’t claim for:
- loss of profits, turnover or goodwill
- your reservist’s salary or pension contributions if you keep paying them
How to claim
Download and fill in the claim form. Print it out, sign it and either scan and email it or post it. The addresses are on the form.
When to claim
You can claim before the reservist leaves, but you won’t get a payment until they’ve started service. You can’t claim later than 4 weeks after the last day of their service.
You can claim for costs as they arise - you don’t have to claim for them all at once.
Costs for training should be claimed within 8 weeks of the end of the training.
Help for employers
Contact Defence Relationship Management (DRM) if you need further help.