New warnings have been released by The Pensions Regulator (TPR), cautioning employers that their credit rating may be affected if they ignore their legislative duties.
TPR's latest bulletin states that a small group of employers have already been handed County Court Judgements (CCJs) after failing to pay fines for missing their auto-enrolment duties and consistently ignoring penalty notices issued by the Regulator. Details of the CCJ are then added to the employer’s credit records if the fine is not paid within 30 days.
Three CCJs have been issued to employers, with more currently going through the court process. The Regulator’s bulletin states that it is the hospitality sector that is at a higher risk such as pubs, bars, and hotels because some small employers are likely to leave things to the last minute, resulting in non-compliance.
Charles Counsell, TPR's Executive Director of Automatic Enrolment, says:
“A CCJ goes onto an employer’s credit record and remains there for six years, seriously affecting their ability to borrow money for their business in the future. Burying your head in the sand and ignoring your legal duties means your staff are missing out on pensions they are entitled to and your credit rating and reputation could be hit.”
This latest action demonstrates that although TPR's main focus has always been based around helping employers comply with their duties, they will not hesitate when it comes to putting sanctions in place designed to make employers comply.
If you need help understanding automatic enrolment, why not attend one of our free webinars to learn more and remain compliant.
Alternatively, for more information please contact our team today on 01527 571 223 or email [email protected]
Author: Jess King, Customer Services Executive
PeopleHR