Head fired the employeeNew 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:

 

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  • 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.

What happens if you don’t comply with the Automatic Enrolment rules?

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 info@investmentsense.co.uk