Employees snitch on Employers who don’t comply with Auto Enrolment Mar 12, 2019Views: 52
Auto enrolment compliance is still very much at the forefront of The Pensions Regulator’s (TPR) objectives. However, a small minority of employers are still not complying with their auto enrolment duties. Some employers tell their employees that they would face a pay cut if they joined a workplace pension scheme. Others tell them that they have in fact been enrolled when a pension scheme has not even been set up. These employers are hoping that their auto enrolment duties will simply disappear or that their employees won’t even notice that they are being denied their rights.
Fortunately, employees are very aware of their rights and entitlements. TPR is relying on employees to inform them where their employer has failed to properly carry out their automatic enrolment duties. According to TPR, ‘It was a whistle-blower who alerted us to the situation at Birmingham-based Crest Healthcare, whose staff were told that pension contributions were being paid by the employer when, in fact, a scheme hadn’t even been set up.’ Both the company and then Managing Director at Crest were prosecuted after pleading guilty to non-compliance.
For the most part, the role out of automatic enrolment has been hugely successful with over 1.2 million employers gone through the process. More than 9.6 million people have gained a workplace pension as a result which is some achievement. The majority of employers continue to comply with their AE duties and it’s now a regular part of their payroll process.
It’s likely that a small number of employers will continue to try to evade their duties. Whistle-blowers are a vital component to identifying these employers that have not acted on their legal employer duties. TPR receive over 80 reports every week from employees who suspect that their employers are breaking the law. These reported cases have directly led to around 600 employers being investigated for non-compliance.
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