What Is Auto-Enrolment?
Auto-enrolment is the name given to the automatic enrolment of employees in a workplace pension plan. This is required for all employees that meet the criteria of the new legislation.
The term “automatic” is applied because the employee needs to take no action to become enrolled in the plan. As an employer, however, there are steps that must be followed within specific timelines to retain compliance with auto-enrolment requirements.
What Are the Business Obligations for Auto-Enrolment?
Every employer has an established “staging date” for compliance with the auto-enrolment requirements and has the responsibility to include all qualifying employees in pension schemes by that date. Failure to comply will result in strict penalties imposed by the UK government.
Every business must determine their staging date to evaluate when to get started with the preparation for auto-enrolment, which includes: