Sussex companies could be the unwitting victims of a war with Iraq.

This was the warning from one of the county's best-known businessmen after Defence Secretary Geoff Hoon's called up about 1,500 reservists.

He has since said a further 4,500 British reservists are to be called up to join an expected 30,000-strong military force.

In a letter to the Daily Telegraph, Anthony Caffyn, the former managing director of Sussex car dealership Caffyns, said the company had always been a supporter of the Volunteer Reserve Force (VRF) but that the current legislation was flawed.

He said: "It is serious for a company to lose a salaried or fixed-wage member of staff on call-up.

"It is even more disruptive when a member of staff is productive, such as a motor mechanic, and is, with overtimes and bonus payments, well paid.

"A skilled fitter makes good profits for his or her company. In our case such skilled employees cannot be replaced with temporary ones with little product knowledge. The MoD's 'replacement and hardship' awards would not cover the loss of sales and profits."

Companies can only claim up to £2,400 for the cost of finding a replacement and a maximum of £31 a week for any administrative difficulties they face as a result.

Under the Reserve Forces Safeguard of Employment Act 1985, employers are also obliged to keep a reservist's job open.

The MoD said reservists could be required for upwards of six months, further angering employers.

The reservists can also suffer financially. The maximum any one up to the rank of corporal can earn is £22,500.

But Mr Caffyn said it was not just the reservists who would suffer, adding: "All levels of management are paid bonuses against targets and the call-up of our skilled productive reservists will affect the remuneration and livelihood of not only the reservists but also colleagues and managers."

He said, given reduced spending on defence, the legislation on the increased use of the reserve forces needed to be rethought "as a matter of urgency".

Supporting Britain's Reservists and Employers (SaBRE) was set up by the MoD to support employers and reservists.

To contact SaBRE, call 01252 357604 or email hq@serfca.co.uk