18 May, 2012
Did you know that from autumn this year the government is
introducing a scheme in which all employers (including farmers)
will be required to auto-enrol all eligible workers on to a
qualifying pension scheme? This is even if you only have as little
as one worker and you don't have any kind of pension for them at
the moment. You will also have to pay a contribution to that
pension scheme of up to 3% of their salary, provided that the
employee also pays into it.
The actual date that you need to start giving this benefit
depends on the size of your business. You can check when you need
to start doing this by visiting www.thepensionsregulator.gov.uk/employers/tools.aspx
and entering your payroll number. The stage date will depend on the
number of people on your payroll as of 1 April this year.
This staff benefit is in addition to any wages set out in the
agricultural wages board or the national minimum wage.
If you do not auto-enrol when you are required to, there is the
potential for a fixed or escalating penalty notice to be served on
your business. This could be as much as £400 for a fixed
penalty notice and between £50 and £10,000 as a daily rate for as
an escalating notice. This is obviously in extreme cases. In
the first instance the Pensions Regulator will try to educate and
encourage but these penalties should not be ignored.
Go and visit www.thepensionsregulator.gov.uk/employers/7-steps.aspx
or contact Verity Slater at Follett Stock (below) to find
out more. Verity will be doing a seminar, setting out exactly
what you need to do in the Autumn in Truro and Exeter, so do
contact her on 01872 241700 if you would like to
Verity Slater is an Associate Partner and Head of
the Employment Team
at Follett Stock. She has built up the team in both size and
returning to Cornwall and joining the firm in 2002 - she
hails from Falmouth.
Verity advises large and small Employers on all aspects of
employment law and
has a particular speciality and interest in agricultural and