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Automatic for the people - Breach of Auto-Enrolment Pensions means Everybody Hurts

The Pensions Act 2008 introduced legislation which required employers to provide pensions for their employees. The ‘Auto-Enrolment’ pension scheme means that employees are automatically required to deduct 3% of monies from an employee’s salary in to a company pension scheme, with the employer obliged to make the same contribution.

Whilst the legislation came in to force on 30th June 2012, this only applied initially to employers of 250 or more employees. Those employers who existed at the time with 30 or fewer employees were required to abide by this legislation by 1st April 2017. These obligations now apply to most employers (other than new employers who did not exist until after April 2013).

Despite most employers now having a legal obligation to enrol their employees in to a pension scheme, the Pensions Regulator has announced that around 800,000 UK small businesses are yet to be auto-enrolment compliant. Nineteen businesses have so far been fined for their non-compliance, having failed to comply with demands from the Pensions Regulator, with fines ranging between £500 and £14,000.

If you need assistance with any employment issues relating to your auto-enrolment obligations, or any other employment issue, please email me at ben.stanton@franklins-sols.co.uk, or call our Employment Team on 01908 660966 or 01604 828282.