You are not entitled to decide if your staff want a pension even if you solicit their views. All businesses large and small MUST have a workplace pension. It is the legal responsibility of the business to set up a workplace pension in accordance with the Pension Act of 2008 and auto enrol eligible staff.
Even if your business employs only ONE person you must set up a workplace pension, it’s the Law!
In accordance with the Pension Act 2008 and auto enrolment of all businesses which now applies to small micro businesses as from June 1st 2015
What If My Staff Don’t Want It?
The obligation and legal responsibility rests with the business to have in place a workplace pension scheme by your given staging date when your contributions MUST be started.
All eligible employee’s MUST be automatically enrolled in the scheme if they meet the eligibility and criteria rules and for them to decide if they wish to ‘opt out’ not the employers right to choose. The employer MUST offer a workplace pension scheme and keep it in place even if all current eligible enrolled employees decide to ‘opt out’ it’s an essential financial service employers must have for workforce now and in the future.
You are NOT to solicit your employees or attempt to persuade them to ‘opt out’ of the scheme and you must not offer any form of inducement by means of cash incentives, pay rises or other methods to coerce or persuade eligible employees to ‘opt out’ all such actions are ILLEGAL and will be looked upon by the regulator very dimly and punishable with heavy fines and at worse for flagrant business owners who defy the law carries a TWO year term of imprisonment.
If you need help to ensure your salon does not fall foul of the pension regulator [TPR] call Active Enrolment 020 3004 0601 or contact us for free help and guidance
The primary purpose is to encourage employers to positively embrace the benefits of offering a work place pension that your employees are automatically enrolled to ensure their participation.
Employees will be able to move from job to job with their own work place pension – Portability
Employees will be encouraged to save for their future eventual retirement with tax relief on contributions – Pension PotLess Reliance upon the state and more self-reliance is a positive move forward.