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Tuesday 18 September 2012

Auto-enrolment legislation could be reviewed

Auto-enrolment legislation could be about to undergo a major review, just weeks before it is due to be implemented across the UK.

The Department for Work and Pensions is considering going back to the drawing board over the scheme, after concerns were raised by specialists in the payroll industry.

In order to grasp an understanding of the fears raised, the government met with a collection of organisation, including the Chartered Institute of Payroll Providers, several payroll firms, a software developers association and Alan Smith, of First Actuarial, last Thursday (September 13th).

During the meeting, complaints were made that many employers risk falling foul of the legislation as they will be forced to make a decision on enrolling staff members before important data can be gathered.

Simon Parsons, director of compliance at Ceridian, explained in more detail: "To be blunt, the reforms seem to be written for employers who pay people monthly.

"So for employers who don't – probably every retailer, restaurant, pub, hairdressing salon, you name it – the majority of the workforce in non-salaried situations aren't paid a monthly wage."

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Posted by Richard Esquilant

Source: The Sales Director News

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