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£42,000 fine for failing to comply with auto-enrolment duties

Monday, 08 May 2017

The Pensions Regulator is stamping down! A high street footwear firm has stepped out of line, and turned a £400 fixed penalty notice into a bill for more than £40,000 after claiming it was too busy to meet its pension responsibilities...

 

The Pensions Regulator Illustrated Summary

Image source: The Pensions Regulator

The company had been required to check whether its staff qualified to be put into a workplace pension scheme and to confirm to TPR that it had done so. Although the company paid the £400 fine it still did not become compliant. Despite repeated reminders – and being warned that it would face a new fine that would increase by £2,500 per day if it did not meet its responsibilities.

The fine reached £40,000 before the company finally became compliant. At that point, they refused to pay the fine – forcing TPR to take the business to court to secure payment.

Read the full report

 

Charles Counsell, TPR’s Executive Director of Automatic Enrolment, said: “The failure by Johnsons to act, despite our repeated warnings, left it with a completely unnecessary bill that was more than 100 times the amount it was originally fined.

“Our message is clear: fail to comply with the law and you may be fined. Fail to pay your fine and we may take you to court.”

 

Timeline of Events The Pensions Regulator Regulatory intervention report

Image source: The Pensions Regulator

The case has prompted a fresh warning to employers by TPR not to ignore their automatic enrolment duties.

 

Don’t follow in their footsteps!

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