NEST - Auto-enrolment of Employees into Pension Schemes


What is happening?

All employers operating in the UK will soon be subject to a new duty to enrol eligible employees automatically into a pension scheme and pay a minimum level of contributions in respect of those who are enrolled.

As a general rule, with effect from the day that an employer becomes subject to this new duty, it must ensure that all of its eligible employees are auto-enrolled (for joiners after that date it would be their first day of employment).

However, employers can decide to introduce a waiting period and defer an employee’s automatic enrolment date by up to three months. There is a notice procedure to go through to achieve this. Most employers are expected to take advantage of this three-month waiting period as it gives a little more flexibility in terms of probationary periods of three months or less.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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