Auto Enrolment – This is coming to your business
April 24, 2014
You are probably already aware that the provisions of the Pensions Act 2008 came into force in 2012. The effects are that employers are required to enrol eligible jobholders on the auto enrolment scheme UNLESS they are already members of the employer’s qualifying scheme.
A Jobholder is someone aged between 22 and the state pension age who earns at least £5,688 but no more than £41,450.
Employers will be required to contribute a minimum of 3 per cent of salary while the employee has to contribute at least of 4 per cent of salary, up to a maximum (currently) of £3,600 per annum.
These new employer duties are being introduced over 6 years. The UK’s largest Companies started in 2012 but auto enrolment will eventually apply to all Companies. You can easily check on the Pensions Regulator Website when this new law applies to your business (wwww.thepensionsregulator.gov.uk).
Employers who fail to comply could be subjected to enforcement action including fines.
As commercial solicitors we can advise on the principles of auto enrolment and how it will affect your business. You need to start planning now so please contact our commercial and employment solicitors Jennifer White at our Bromley office on 020 8313 1300 or firstname.lastname@example.org for further advice.
The information contained in this article is intended for general guidance only. It provides useful information but it is not a substitute for obtaining legal advice as the articles do not take into account specific circumstances. So do please Contact US for legal advice on the issues raised.