Auto enrolment

New Conditions Workplace Pensions

Now, since 1 October 2017, once you employ a worker, you automatically assume AE duties. Your employees must be auto-enrolled in the workplace pension if they meet the following conditions.

• If they are aged between 22 and state pension age, and
• If they earn more than £10,000 per year; £833 per monthly; or £192 per week. The only grounds for exemption from the workplace pension is if the employee tells you they’d like to opt-out. So, if all your employees do not meet these criteria, you are safe right? Wrong. Because, according to pension regulations, even if all your employees don’t meet these criteria you may still have Auto-Enrolment responsibilities. This is where you need to pay close attention: You will be required to set up workplace pensions for workers who may not be eligible for auto-enrolment but have the right to join or opt-in a workplace pension and wish to do so. So how should you go about this as a new employer?

Director-only companies

The following are other conditions that exclude you from auto-enrolment.

• –  If you are the only director in your company without any workers.
• –  if there are more than one directors in your company but each without a contract of employment (except one). Should you be contacted by TPR about auto-enrolment responsibilities, you’ll need to inform TPR that there are no workers in your company that qualify for auto-enrolment.

But there is a catch. If you are currently exempted from auto-enrolment by this director-only clause but on or after 1 October 2017, you employ a worker, your company will be viewed as ‘new employer’ and therefore have new auto-enrolment duties.