In its latest edition of Agent Update, HMRC included a reminder that businesses that take on temporary staff over busy periods, e.g. the summer holidays, need to check whether they have obligations under auto-enrolment. Does this affect you?
Employers who take on extra staff over the summer must check if these workers are eligible for automatic enrolment into a workplace pension. Employers must individually assess any seasonal or temporary staff every time they pay them. This includes staff with variable hours and pay, whether they are employed for a few days or longer. Failing to do so means you may be in breach of your obligations, risking a financial penalty.
Fortunately, there is a simple way to avoid problems. If you take on staff that you know will be working for you for less than three months, you can apply for postponement. This delays the date of assessing the employee by three months, so if they no longer work for you, you won’t be at risk of non-compliance. The pensions regulator has published guidance on postponement.
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