64 employers have been served CCJs for failing to pay their Escalating Penalty Notice (EPN) fines in the first two quarters of 2017. The fines, ranging from £500 to a shocking £52,500 across diverse business types, specifically relate to auto enrolment failings. In the same period, TPR notes that 24 employers have paid an Escalating Penalty Notice (EPN) but are still non-compliant and subject to further action1. TPR have not only published the names the employers concerned, but also their postcodes “…to avoid possible confusion with other employers with similar names2.”
It’s clear that while most employers appear to be complying with their duties, TPR continues to be tough on those who fail to comply. Where an employer fails to pay a penalty and court action is taken against them, there is considerable business risk:
Advisers with business owner or director level clients that might be subject to auto enrolment in the future should have a strategy in place. Whether it is helping the client through the process or referring them to someone who can, avoiding action from the TPR will not only help your client’s business, but yours as well; for example, you’d probably want to avoid your clients cashing in their investments to pay TPR fines and/or back contributions.
In addition, there is a potential opportunity in identifying which employers on TPR’s list are local to you. Perhaps you could offer the help and support they so desperately need to prevent further action.
You can find details of the employers who have been fined here: http://www.thepensionsregulator.gov.uk/fines
For more on our auto enrolment proposition, speak to your normal Royal London contact.
Business Development Manager
A self-confessed 'Pensions Geek', Jamie reads Pensions Acts for breakfast. He's spent the last three years working on automatic enrolment and has talked to hundreds of advisers and employers about how they can best prepare.