As an employer, you have a responsibility to help your employees save for life once they’ve finished work.
Laws have been put in place to ensure all staff are signed up to a workplace pension scheme. We explain what happens if your business fails to sign up.
The government has stated that all staff members over the age of 22 and earning £10,000 per year or more should be enrolled on a workplace pension scheme, if they are eligible.
Companies are given a date by which they need to have enrolled their staff on a pension scheme. Failure to comply with this can lead to serious consequences for a business.
Failing to comply can mean your business is contacted with a written notice. This gives you a specific timeframe to rectify any problems and ensure your staff are enrolled.
Following this you can be subjected to a number of fines, from a fixed penalty notice of £400 to an escalating penalty rate, which is a continuing daily fine. This can range from £50 for smaller businesses of one to four employees to £10,000 for companies with more than 500 employees.
The fines work based on the size of a business. But regardless of business size, failing to resolve this penalty has the potential to be incredibly costly and financially damaging to a business.
If a company fine isn’t effective, the Pensions Regulator may be able to pursue the ability to prosecute that business for wilful non-compliance.
Our guide, How do I sign my employees up to a workplace pension, explains what you need to keep in mind when searching for, and signing your staff up to, a workplace pension. This can help you to avoid running foul of the law and receiving heavy penalty fines.
FSB members also have access to our Workplace Pensions service. This is a service designed specifically to help our members provide their staff with a fully compliant pension scheme.
The service features:
To find out more about how our workplace pension scheme can help you establish a pension scheme for your business, get in touch with a member of our team or visit our FSB Workplace Pensions page.
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