Auto Enrolment Penalties on the rise

If I’m ill can I avoid auto enrolment penalties?

According to the Pension Regulator, “being ill or short-staffed isn’t a good enough excuse for employers failing to comply with their legal duties on time.”

The regulator’s latest compliance and enforcement report shows that the number of small and micro employers receiving fines has risen after tribunal judges rejected what the employers claimed were ‘reasonable excuses’.

As with any other business activity, if an employer is too unwell to complete their AE duties, they’ll need to find someone else who can. Automatic enrolment is ultimately the employer’s legal responsibility, so whether it’s due to pension provider failings or illness, a judge won’t consider an excuse to be ‘reasonable’ if there’s something they or someone else could have done to remedy the situation in time.

New information for employers on assessing staff with varying hours and pay:

The amount an employer needs to contribute to their staff’s pension will vary according to how much they earn. Below a certain amount they may not need to pay any contributions at all.

There’s a new animation and assessment tool available on the regulator’s website to help employers who have staff with a variety of working patterns.

The regulators website is full of useful information but there is no substitute for professional advice. If you are unsure about your obligation sunder Auto Enrolment, or would like to explore the possibility of outsourcing the administration of your company scheme, contact our expert team on 0845 177 5500 or using our on-line contact form.

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