The Norfolk Snowsports Club in Trowse has been issued a £52,500 fine by The Pensions Regulator for breaching pension auto-enrolment scheme regulations.
This administrative oversight may cost the volunteer-run sports club over £50,000 as an initial £400 fine was followed up with a £2,500-a-day escalating penalty notice for their continued non-compliance.
Although the sports club hopes to appeal this fine, this case shows that the Pensions Regulator is taking compliance and enforcement extremely seriously and every employer should make sure that their practices are in line with the regulations.
What are the rules?
Under the Pension Act 2008 all employers in the United Kingdom are required to enrol eligible workers (those aged over 22 and earning more that £10,000 a year) in a pension scheme which both the eligible worker and the employee must pay into.
Although an employee will be free to opt out of this scheme, there is an ongoing duty on the employer to re-enrol the eligible worker in the pension scheme every three years.
How can Fosters help?
If you have any questions about the pension auto enrolment scheme or want to make sure that your employment contracts and practices meet the regulations then please get in touch.
Our Business and Commercial lawyers have a wealth of experience and knowledge to assist you in relation to any legal query or matter you may have. Call us on 01603 620508 or complete our online enquiry form and a member of the department will be in touch very soon.