Auto Enrolment Fines rise
Auto Enrolment Fines have risen in the last 3 months.
Employers have been warned by The Pensions Regulator (TPR) that if they ignore their auto-enrolment duties they could find themselves with a large fine and county court judgment (CCJ).
Data from TPR shows the number of fines associated with implementing workplace pensions has risen in parallel with the high number of employers now reaching their compliance deadline.
The regulator said between October and December 2016, nearly 3,000 fixed penalty notices of £400 were issued.
In the same period, 870 escalating penalty notices were issued. These start at £50 per day and can rise to £10,000 per day, depending on the number of employees.
TPR said a small number of employers have now been issued with CCJs after failing to pay these fines.
It said this can happen when employers persistently ignore penalty notices sent to them by TPR.
Employers failing to pay within 30 days of receiving a CCJ have the details entered on their credit record. This affects their credit rating and ability to borrow money in future.
Charles Counsell, executive director for auto-enrolment at TPR, said: “Burying your head in the sand and ignoring your legal duties means your staff are missing out on pensions they are entitled to and your credit rating and reputation could be hit.”
TPR said small employers can become non-compliant because they are more likely to leave things to the last minute. In most cases the nudge of a compliance notice is enough to get them back on track.
The report flags the hospitality sector as an area at higher risk of non-compliance. The sector, which includes hotels, pubs and bars, has received a higher percentage of fines. This is an area which typically includes a large proportion of employees on non-standard contracts, which in part explains the higher proportion of non-compliance.
Details of the full report can be read here.
Please contact us if you need any help with your Auto enrolment.