So… what happens if I don’t comply? The Pensions Regulator (TPR) is charged by the Government to ensure that companies comply with workplace pensions regulations. The Pensions Regulator has powers to take action against employers who fail to carry out their duties. There is a 3-stage process that TPR will follow: Stage 1
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Stage 3 Escalating Penalty Notice If an employer fails to comply with the original compliance notice and subsequent fixed penalty notice, they will face daily escalating penalties. Number of employees* Daily rate 1-4 £50 5-49 £500 50-249 £2,500 250-499 £5,000 500+ £10,000 *This is generally the number of people in the employer’s PAYE scheme or the number of people affected by unpaid contributions. Where this number is not readily available, TPR may use various other sources to estimate this number.
Compliance/Unpaid Contributions Notice
This notice will detail the breach and require the employer to put things right in a specific timescale. A notice may also include a requirement to pay any missing contributions with interest added. Stage 2 Fixed Penalty Notice - £400 This notice will require employers to put right the breach identified in the previously issued compliance notice. Employers will be given at least 4 weeks from the date of the fixed penalty notice to put things right. Failure to comply by the specified date will result in the fixed penalty being applied.
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