Many businesses decide to employ extra / temporary staff over the festive period. But, what needs to be done to ensure you meet your auto-enrolment duties?
Automatic enrolment does apply for temporary staff, and employers will need to access and enrol any qualifying employees into a pension scheme. Once enrolled, both the employee and the employer will need to make contributions, regardless of the length of the contractual term.
The Pensions Regulator has issued a warning that the contributions are going to increase in April 2018, and that all employers will need to be ready to deal with the increased contributions. The initial increase for minimum contributions will be 3% for staff and 2% for employers. This was part of the conceptual plan for auto-enrolment and further increases are planned for 2019.
Further guidance is available on the TPR website which reminds both employers and employees to check how the changes are going to impact them, for example, checking the payroll system used is compatible with the changes. However, if you are unsure please speak with us for more information.