15 January 2014
The Pensions Regulator has carried out the first in a series of in-depth fact finding visits to business sectors that may face automatic enrolment compliance challenges.
The move marks the launch of a proactive drive towards different sectors and demonstrates how the Regulator will use direct intervention to ensure employers comply with their statutory duties and help establish a pro-compliance culture.
The Regulator’s automatic enrolment compliance and enforcement team visited a number of recruitment employers where they were able to have an in-depth look at how these employers are implementing automatic enrolment.
The recruitment sector was identified through the Regulator’s intelligence work in line with the compliance and enforcement ‘proportionality framework’ which is part of the automatic enrolment compliance and enforcement policy.
The recruitment sector faces significant compliance challenges and The Pensions Regulator felt that it was particularly important to target this sector because more than 1,000 recruitment employers are due to reach their staging date between April and July this year.
The visits were made to prevent and tackle possible breaches, ensure compliance, learn lessons and share good practice among the industry. The Regulator wants to reduce the likelihood of enforcement action by identifying and, where possible addressing problems early. As a result of information gathered from the visits, the Regulator will be issuing compliance guidance tailored for the recruitment sector.
Executive Director of Automatic Enrolment, Charles Counsell said: “These visits were very positive and employers were willing to engage with us and tell us about their experiences. Engaging directly in this way helps us to get a good understanding of the issues faced by this sector and use what we learn to help others in the industry.
“Over the coming months we will be carrying out more visits to employers in other sectors where we have identified potential compliance challenges. We want to ensure any problems they face are addressed in good time and that they do not run the risk of non-compliance – which can come at a cost.”
Kate Shoesmith, Recruitment and Employment Confederation (REC) Head of Policy, added: “Recruiters want to be compliant and the REC is pleased that The Pensions Regulator recognises the additional barriers that recruiters face and is working with the industry to address these issues.
“The process does not lend itself easily to an atypical workforce and recruiters have had to work hard to ensure that their businesses are ready for automatic enrolment.
“Over the last 12 months, many recruiters have successfully dealt with the challenges that the industry has faced and we will continue to work with the Regulator to ensure that the remaining recruiters who are yet to reach their staging date are supported through the process.”
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