Why Firms Cannot Afford to Ignore Recent Staff Pension Rules26-Jul-2017
A high street footwear firm recently turned a £400 fine into a bill for more than £40,000 following a claim it was too busy to meet its pension responsibilities.
The shoe company in question was given the £400 fixed penalty notice after it failed to comply with the law on the automatic enrolment of its staff into a workplace pension.
The company was required to check whether its staff qualified to be put into a workplace pension scheme and to confirm to The Pensions Regulator (TPR) that it had done so.
The company covered the fine, but still did not comply to check for enrolment. Despite being warned that it would face a new fine that would increase by £2,500 per day if it did not meet its responsibilities: The Shepperton-based business continued to ignore the order.
The fine reached £40,000 before the company finally became compliant; but at that point the shoe company still refused to pay the fine – forcing TPR to take the business to court to secure payment.
Eventually the shoe company agreed to pay the £40,000 fine and £2,000 court costs, preventing the need for a full court hearing on the matter.
The case has prompted a fresh warning to employers by The Regulator not to ignore their automatic enrolment duties.
The sentiment from The Regulator is that the vast majority of employers meet their automatic enrolment responsibilities; but if employers or businesses fail to comply with the law, they may be fined, and that all employers have legal duties and can use the Duties Checker on TPR’s website to quickly understand exactly what they must do.
Employers experiencing challenges in meeting their automatic enrolment duties should contact TPR as early as possible to discuss their situation.
For more information, visit the TPR website.