The UK's automatic enrolment law will affect nearly a million UK employers in 2017, more than double the number of employers it affected last year. Small and micro UK employers can now no longer afford to put off implementing a compliant pension plan.
By February 2018, all UK employers must have a pension plan that automatically enrolls employees, with mandatory minimum contributions from both the employer and employees. Employer deadlines, or staging dates, vary by company workforce size, and many larger UK firms must now have auto-enrolment plans already in place. If you’re a UK employer that has not reached its auto-enrolment staging date, here are some pitfalls you should be aware of.
Increasingly businesses are expanding their international presence to the United Kingdom to increase revenue and win new customers. Companies doing business in the UK will need to be acquainted with UK pension auto enrolment regulations which require employers to automatically enroll employees in a pension to which both the employee and employer contribute.
Automatic enrolment is unquestionably the biggest regulatory change to UK workplace pensions in a generation. As a UK employer, now is the time to ask yourself: What do I need to do to comply with the change, and when?
Since 2012, the largest employers in the United Kingdom have been required to automatically enrol nearly all of their employees in a pension and to make minimum contributions. Over the next several years, this requirement will be imposed on all employers in the UK, with significant consequences for employers and employees alike.