The Importance of Auto Enrolment…
The Pensions Regulator (TPR) has decided to start naming and shaming employers who have been served County Court Judgements for non-payment of auto enrolment fines. What does this mean for employers, their employees, and advisers?
TPR have reported that 64 employers have been served CCJs for failing to pay their Escalating Penalty Notice (EPN) fines in the first two quarters of 2017. The fines, ranging from £500 to a shocking £52,500 across diverse business types, specifically relate to auto enrolment failings. In the same period, TPR notes that 24 employers have paid an EPN but are still non-compliant and subject to further action. TPR have not only published the names of the employers concerned, but also their postcodes “…to avoid possible confusion with other employers with similar names.”
What is clear, is that whilst most employers appear to be complying with their duties, TPR continues to be tough on those who fail to comply. Where an employer fails to pay a penalty and court action is taken against them, there is considerable business risk:
- The reputational risk of being publicly named and shamed.
- Cash flow risk if a large fine as well as backdated pension contributions must be paid.
- Receiving a CCJ could affect the business’s ability to borrow in the future.
- Workers who become aware of non-compliance could become demotivated, leading to reduced productivity, or even workers leaving the employer.
As an Employer, what should you do?
If you know you should be auto enrolling, but you’re not sure how to go about it, or when your deadline is, just give us a call. We’d be delighted to offer support and advice.
DON’T FORGET: Even if your staff have said they’re not interested in participating in a pension scheme, as an Employer you MUST officially auto enrol and then opt out. If you do not auto enrol, whether your staff wish to have a pension or not, you could STILL be fined.