A company in Oldham and its managing director have been convicted of 16 workplace pension offences. They had deliberately failed to automatically enrol 36 staff into a workplace pension. In doing so, they failed to comply with the rules on workplace pensions. The Company should have started making employer contributions by June 2015. The wilful refusal to enrol staff triggered the first case brought by The Pensions Regulator under the auto-enrolment rules.
If the Company and its MD are sentenced in the Crown Court they face a potential unlimited fine. Company directors can face terms of imprisonment of up to two years if sentenced in the Crown Court in the most serious cases. In addition to any fines imposed, The Pensions Regulator is also pursuing the Company for £14,400 in civil fines to remedy the non-compliance.
All UK employers are required to automatically enrol eligible employees into a workplace pension after the ‘staging date’ for the business. If employers have failed to comply with the complex pension rules then they should take immediate professional pensions advice to minimise the risk of penalties for non-compliance.