New research has revealed that The Pensions Regulator has investigated 500 firms for suspected non-compliance with Automatic Enrolment legislation, over the past six months.
The figures have come to light after a Freedom of Information request by the Pensions Professional publication, which revealed:
- Since October 2012 a total of 590 firms have been investigated for suspected non-compliance
- In 134 instances the regulator took enforcement action
- Compliance notices were issued to companies who failed to complete the necessary registration process, who didn’t established a suitable pension scheme and who missed pension contributions
The suspected breaches were reported to the regulator both by the companies themselves and also whistle-blowers, perhaps concerned their employer is failing to meet their obligations.
The penalties for businesses failing to comply are severe and are applied in three stages:
Stage 1: Warning
Employers who have not complied will receive a compliance / unpaid contribution notice
Stage 2: ‘Wake up call’
Fixed penalty of £400
Stage 3: Persistent offender
These fines depend on the size of your business:
1 to 4 employees £50 per day
5 to 49 employees £500 per day
50 to 249 employees £2,500 per day
250 to 499 employees £5,000 per day
500+ employees £10,000 per day
We are here to help
Complying with your Automatic Enrolment obligations is complex and time consuming; not complying can lead to a large fine.
Whether you have a simple question or would like to learn more about how we can help you comply, get in touch our team of advisers are here to help.
Give us a call today on 0115 933 8433 or email email@example.com