Nearly 200 firms have been slapped with penalty notices for failing to auto-enrol staff into pension schemes.
Last April, our blog discussed auto enrolment and the fact that every employer will need to introduce it, regardless of headcount or financial turnover.
Recently, the Pensions Regulator handed out nearly 200 penalty notices. The companies involved received penalties as they failed to enrol staff into retirement schemes. (Source: Ruth Lythe, Daily Mail)
Between October and December 2014,166 firms were hit with penalty notices for breaking auto-enrolment rules. Each company was issued with a £400 fine.
“Millions of workers are being enrolled into a pension for the first time under the Government’s programme,” explains Matthew of Consensus HR. “Companies that ignore the auto-enrolment scheme are depriving employees of cash for their retirement.”
In addition to the fines issued, the watchdog also delivered 1,139 warnings to companies in October – December 2014. If the companies fail to change their ways they too face a penalty.
Auto-enrolment began in 2012 with the largest companies. It will continue until 2018 when the smallest firms will have to provide a pension for workers.
Companies also need to ensure that the pension they provide is written within their Employment Contracts. Consensus HR has been supporting businesses with the HR Management and HR Advice handling since the arrival of Pension Auto-enrolment.
Preparation involves a recommended six months, ensuring a smooth implementation of auto-enrolment to your business. Help is available via Consensus HR. We advise that you arrange an initial discussion prior to the anticipated influx as the compulsory deadline approaches.