Complying with auto-enrolment pension duties this summer
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Employers taking on extra staff over the summer must make sure they are complying with their automatic enrolment pension duties.
This warning comes from The Pensions Regulator (TPR) in an online campaign aimed at employers who are likely to hire summer temporary staff and their professional advisers.
Employment of seasonal staff
Even if additional staff are employed for a few days or weeks, employers must individually assess whether they are eligible to be enrolled into a pension scheme each time they are paid. If an employee is eligible, the employer must put them into a qualifying scheme and pay contributions.
As temporary staff may have variable hours and pay, the employer’s assessment of who to put into a pension scheme may take more time and effort. To assist with this assessment, TPR has published guidance to help employers ensure they are meeting their duties correctly.
Postponement
If an employer has staff who will be working for them for less than three months, they can use postponement to delay assessing those employees. This pauses their duty to assess staff until the end of the three-month postponement period.
Complying with pension duties
If an employer thinks they may be late in meeting their auto-enrolment duties for their summer staff, they should tell TPR immediately so that compliance support can be provided.
TPR monitors employers of all sizes, across all sectors, to protect staff and ensure they receive the pensions they are legally due. The majority of these employers are doing the right thing for their staff, but TPR warns that those who fail to meet their duties could face enforcement action, including fines.
Check the steps employers need to take to assess and enrol seasonal or temporary staff, and read the additional guidance on employing staff whose hours and pay will vary.