Auto-enrolment duties are not optional. The Pensions Regulator (TPR) has wide-ranging powers to enforce compliance and penalise employers who fail to meet their legal obligations.
Common compliance risks
Employers can fall into non-compliance by:
Failing to assess workers correctly
Not enrolling eligible jobholders
Paying incorrect or late contributions
Failing to complete declarations or re-declarations
Inadequate record-keeping
Encouraging workers to opt out (including during recruitment)
TPR enforcement action
TPR’s approach is initially to educate and encourage compliance, but enforcement action may follow where issues are not resolved.
Non-statutory action
Guidance and informal warnings
Written warnings with deadlines for compliance
Statutory notices
Compliance notices
Unpaid contribution notices
Interest charged on late contributions
Financial penalties
Fixed penalty: £400
Escalating daily penalties: £50 to £10,000 per day (based on employer size)
Civil penalties for unpaid contributions:
Up to £5,000 for individuals
Up to £50,000 for organisations
Penalties for prohibited recruitment conduct
Court action
In cases of deliberate or persistent non-compliance, TPR may:
Recover penalties through the courts
Prosecute employers criminally
Confiscate assets following conviction
Employers have the right to appeal against penalties.
Why compliance matters
Even where no employees are enrolled, employers must still:
Assess workers
Keep records
Submit declarations
Failure to do so can result in penalties regardless of workforce size.
Don't get caught out
