With employers now having to make a pension contribution by law, The Pensions Regulator (TPR) has identified alarming figures of companies not complying, seeing employers ignoring automatic enrolment fines and putting their business’ credit rating in jeopardy.
Urging businesses to protect their credit for future lending, this plea comes as The Pension Regulators issue the latest update on its automatic enrolment enforcement activity. Revealing that the number of fines has yet again risen, such statistics show that a proportion of UK businesses are not taking the enrolment seriously, potentially unaware of the risks such ignorance could boast.
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The report notes that a small number of employers have now been handed County Court Judgements (CCJs) after failing to pay their automatic enrolment fines. Given 30 days to settle the fine, the document identifies further need for such bodies to take action.
Charles Counsell, Automatic Enrolment Executive Director said:
“A CCJ goes onto an employer’s credit record and remains there for six years, seriously affecting their ability to borrow money for their business in the future.
“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.”
Defining the hospitality sector as the highest risk area with regards to non-compliance, TPR says that hotels, pubs and bars make up the highest percentage of fines issued. This is due to the fact that the sector enjoys a large proportion of employees working with non-standard contracts.
Mr Counsell added:
“Our message to small and micro employers has always been to ensure they leave enough time and be clear about what they will need to do to comply. We are here to help – but we will take action if an employer is wilfully non-compliant.
“There’s plenty of information on our website on how to assess and enrol people who work varying hours, so there’s no excuse not to comply.”