Small Companies and Auto-Enrolment

The Pensions Regulator (TPR) and Small Companies Coming Up to Auto-Enrolment. 

The on-going process of the introduction of Workplace Pensions and the auto-enrolment of employees is a long and complex one, but is also one where we are pleased to see that The Pensions Regulator (TPR) is showing some flexibility.

For example, TPR has recognised in a recent Conference that some micro employers may not have staff eligible to auto-enrol.  It is estimated that those with 2 or less employees represent approximately 50% of the staging population.  TPR is now setting up a new simple pathway for these firms to guide them.

It is also known that the communications and the tone of the letters sent out by TPR will become less authoritative.  This does not mean that small employers are going to get away without auto-enrolment, it just means that they will not be put on the naughty step before they have done anything, or not done anything as the case may be.

What Happens if Your Company Doesn’t Have Any Staff?

Automatic enrolment duties don’t apply when a company or individual are not considered an employer. You won’t have any duties if you meet one of the following criteria:

  • you’re a sole director company, with no other staff
  • your company has a number of directors, none of whom has an employment contract
  • your company has a number of directors, only one of whom has an employment contract
  • your company has ceased trading
  • your company has gone into liquidation
  • your company has been dissolved

If you need help, advice and clarification on Workplace Pensions and auto-enrolment, then call us on 0121 690 0390 or contact us. We’ll be delighted to hear from you.

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