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UK businesses still struggling with Automatic Enrolment

As UK law now states, it is your job as an employer to enrol all eligible employees onto a workplace pension scheme and contribute towards it. This is called ‘Automatic Enrolment’.

During 2017 it is estimated that approximately 700,000 employers will stage.

Are employers complying with Automatic Enrolment?

Figures recently released by The Pensions Regulator show that just over 598,100 out of 1.4m employers have submitted a Declaration of Compliance, up to the end of May 2017. However, there is still a shortfall of approximately 800,000 employers who are not yet compliant with the schemes legal requirements.

All businesses existing prior to April 2012 will have passed their staging date by now, while other companies will still be in the process of staging. The Pensions Regulator has issued a warning to businesses looking to begin trading from October this year (see our earlier blog post). The warning highlights the immediate pensions duties that these businesses must observe.

If you are planning to begin trading and recruiting from October, you will have an immediate legal obligation to your employees in respect of pensions. Therefore, you cannot afford to forget about, or ignore, your Automatic Enrolment responsibilities.

Non-compliance leads to naming and shaming

If you fail to fulfil your legal duties, you can expect to face significant financial penalties or other enforcement action taken against you.

So far, The Pensions Regulator has issued more than 16,000 penalty notices to those failing to comply and has now begun to name and shame these businesses online. It has publisheAutomatic Enrolmentd details of employers who have paid penalties but remain non-compliant and employers who have failed to pay and are now facing a court order.

Whatever you do, do not ignore your auto-enrolment responsibilities. At George Hay, we can support you throughout the process and ensure you are fully compliant. Get in touch with our team today on 01767 315010.

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