The Pensions Regulator (TPR) has reminded companies they must fulfil their auto-enrolment (AE) duties as the number of penalties issued for non-compliance rose.
According to its latest quarterly compliance bulletin the number of compliance notices went up to over 26,000 while the number of escalating penalty notices also increased.
Over the period TPR issued 3,728 fixed penalty notices to employers for failing to meet their AE duties. However, the regulator said this increase is a very small proportion relative to the number of compliance notices, or to the number of employers staging.
Fewer than 5% of compliance notices progress to an escalating penalty notice. TPR argues this demonstrates its approach of educating and enabling before enforcing is both effective and proportionate.
TPR executive director of AE Charles Counsell (pictured) said: “We recognise that employers have unique circumstances and challenges, but the law is still the law. Employers who are struggling should contact us, we are here to help – do not wait for a fine.
“The vast majority of employers are successfully meeting their automatic enrolment duties and are doing the right thing for their staff. A small minority do leave plans too late but in most cases the nudge of a compliance notice is enough to get them back on track and avoid a fine.”
Responding to the figures Paycircle co-founder Catherine Pinkney said: “The rise in the number of fixed and escalating penalty notices handed out during the latest quarter is frankly staggering.
“An increase in the number of fines was always on the cards as the smallest businesses started to stage but these numbers are a real cause for concern.
“Between now and 2018 over a million small businesses are set to stage and, judging by this data, the number of fines is set to skyrocket.
“This latest data from the regulator is proof positive that too many small businesses are still in the dark about their workplace pension duties.”
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