Pensions Regulator warns ‘shape-shifting’ employers are dodging auto-enrolment duties – AJ Bell comment

Tom Selby
17 July 2019

The Pensions Regulator (TPR) has today warned some employers are using ‘phoenixing’ tactics to dodge their automatic enrolment pension obligations.

TPR says it has become aware of “a number of employers” apparently attempting to conceal their failure to comply with the law by opening new businesses, transferring their workforce across and then dissolving the original business. 

You can read the full press release here: https://www.thepensionsregulator.gov.uk/en/media-hub/press-releases/investigations-launched-into-shape-shifting-employers-that-try-to-dodge-pension-duties

Tom Selby, senior analyst at AJ Bell, comments: “It is shocking that some employers are using shady tactics in an attempt to pull the wool over the regulator’s eyes and dodge paying pensions to their staff. 

“In doing so these companies are failing to pay workers the full salary package they are owed and risk facing the wrath of the regulator. It is vital TPR clamps down on these dodgy practices as a matter of urgency in order to protect employees and deter others who might be tempted to copy the tactic.

“Given the seriousness of these alleged breaches, it would be no surprise to see the regulator pursue the heaviest possible sanctions. Those who wilfully fail to put eligible workers into a pension scheme, as appears to be the case here, could face criminal prosecution and a maximum prison term of two years.”

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