Covid-19 has seen difficult times for all businesses, leading to the unprecedented levels of support that the government has provided, helping companies by contributing to employee wages, offering support loans and allowing people to defer their tax responsibilities.
What hasn’t changed throughout the pandemic, is the requirement for all employers to continue to meet their workplace pension legislative duties, whether staff have remained employed or have been furloughed.
Failure to comply with any aspect of the legislation will lead to enforcement action and ultimately the issue of penalty notices by The Pensions Regulator (TPR).
We have seen in recent weeks an increased focus from TPR in pursuing non-compliance and the payment of outstanding fines.
A copy of the letter, as seen by Jeffreys Henry LLP, states: “You have an outstanding penalty of £x payable to The Pensions Regulator in respect of the penalty notice issued to you on 9 October 2020. This penalty was issued to you for failing to comply with the Compliance notice.”
Those who have failed to comply must do so immediately as detailed in the Compliance notice and must also pay the outstanding penalty. Failure to pay after 7 days of penalty reminder being received could result in the imposition of further daily escalating fines and legal action may be taken against you.
Along with issuing penalty notices, TPR are able to request information from employers voluntarily and carry out investigations/inspections at the employer’s premises. Unpaid fines may be recovered through the involvement of the courts. The workplace pensions legislation cannot be ignored.