More and more employers are relying on casual workers to take up the slack when they have too much work on their books or when they are short of permanent employees.
Viewed in some cases as second best, casual working suits many people because of the flexibility and variety it offers. So this way of operating can be a good idea from both the employer and the employee’s point of view. But a question on many people’s minds is whether or not employers have pension obligations for their casual workers.
The short answer to that question is; “it depends”.
If, as an employer, you have been given your staging date and you have casual workers on your payroll who:
- Are between the ages of 22 and State Pension Age;
- Earn £10,000 a year or more;
- Ordinarily work in the UK; and
- Are not already enrolled in an employer’s pension scheme
then you will need to automatically enroll them. Irrespective of the duration of a casual worker’s contract, as soon as they earn £833.33 per month they will fall under the scope of automatic enrolment.
Automatic enrolment came into force on 1st October 2012 and will roll out to companies big and small and knowing what your responsibilities as an employer are is essential to make sure you don’t fall fowl of the law. You will be informed of your staging date by The Pensions Regulator twelve months before it’s start date, so you will have plenty of time to prepare.
Here are just some of the things you need to be thinking about if you’re new to auto enrolment:
- Being aware of your staging date.
- Identifying someone in the workplace to coordinate the auto enrolment process.
- Checking who needs to be enrolled.
- Creating your auto enrolment action plan.
- Working out what automatic enrolment will cost your business.
- Making sure your payroll process is auto enrolment ready.
- Identifying an appropriate pension scheme.
- Communicating with your staff about auto enrolment.
- Making sure you make payments and returns on time.
- Staying compliant.
Pensions Automatic enrolment can be a really daunting process for business owners, big and small, but the good news is that most of the businesses who have already been though the process have survived unscathed. When it comes to making sure you are organised ahead of your staging date or indeed dealing with queries as they come along afterwards, it pays to have a great team behind you. Like most things in life, auto enrolment is made much less of a strain on your business when you are surrounded by people who either know all the answers or at least know where to track down the answers. No matter whether the question is relatively simple, like this one about casual workers, or it is more complex, making sure you make the right decisions and take the right actions is essential.
If you’re fearful of auto enrolment or if you have burning auto enrolment questions you’d like to ask, why not get in touch? We have teams of auto enrolment experts on hand to help ease the whole process for business owners like you.