Nursery prosecuted for non-compliance with automatic enrolment legislation

A small business will be among the first to be prosecuted for failing to comply with pensions automatic enrolment laws, a report has revealed.
Announcing its intention to prosecute, The Pensions Regulator (TPR) said the Merseyside-based nursery and its primary director deliberately tried to avoid providing their staff with a workplace pension.
According to the report, both the director and the limited company have been accused of “wilfully failing to comply with their automatic enrolment responsibilities under section 45 and 46 of the Pensions Act 2008”.
It comes after the nursery falsely claimed to have enrolled 13 members of staff into a workplace pension scheme.
However, it emerged that the director has provided false information to the TPR in a deliberate attempt to avoid his legal duties as an employer.
Under the scheme, anyone between the age of 22 and the state pension age earning more than £10,000 a year must be enrolled into an automatic enrolment pension scheme by law. While employees can choose to opt-out of the scheme, they must be automatically enrolled again once every three years.
The latest figures indicate that the workplace pension scheme has brought almost half of the country’s small business workforce into workplace pensions, increasing participation rates by some 44 per cent.
It means that seven in 10 workers are now saving for retirement, compared to one in six before the scheme was launched.
For help and advice administering your workplace pension scheme, please get in touch with our expert team.

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