Pension act update

A major and recent change in employment legislation is that of automatic work place pension schemes. The new measures prevent employers from inducing workers to opt-out of pension schemes, ask them to opt-out of a pension scheme during the recruitment process or treat workers detrimentally or dismissing staff because the automatic enrolment legislation applies.

The pensions regulator may impose a fine of up to £50,000 on an employer that contravenes the prohibition against inducing opt-outs. They may also fine employers up to £5,000 for a breach of the recruitment conduct provisions. Cases of unfair dismissal and mistreatment can enforce their rights in an employment tribunal.

It's not all punishments and enforcement though. The Pensions Regulator is also issuing help to employers by publishing a letter template tool that will help employers provide accurate and practical information to their staff about enrolment on to an automatic pensions scheme.

Download the full PDF below

Download the "Safeguards for workers for ensuring compliance with automatic enrolment into workplace pension schemes" guide.

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