Penalties for Non-Compliance

Delay setting up a workplace pension scheme or fail to keep up with your ongoing responsibilities to comply with regulatory requirements and you face fines from the Pensions Regulator  - and a hefty bill for backdated employer contributions.

Details of workplace pension schemes will be linked to PAYE records, making it easy for the regulator to identify employers who fail to comply and issue warnings and fines.  

If you fail to comply, the Pension Regulator will take the following action:

  • Stage 1 – A Compliance or unpaid contributions notice. This will detail the breach of regulations and the employer’s requirements to rectify them within a specific timescale
  • Stage 2 – A Fixed Penalty notice of £400 if the breach is not rectified
  • Stage 3 – Daily charges for continued failure to comply

The cost of failing to comply with legislation can be severe, with fines as below for every day you remain non-Compliant.

  • 1 - 4 employees' - £50 daily fine
  • 5 - 49 employees - £500 daily fine

As an employer you also face penalties if you encourage employees to opt out of an auto enrolment scheme – you can only provide employees with the information they need to make the decision themselves. If you induce opt outs, or are found to have encouraged new employees to opt out during the recruitment process, you face daily fines based on the number of employees you employ:

  • 1 - 4 employees = £1000 daily rate fine
  • 5 - 49 employees = £1500 daily rate fine

Penalties for non-compliance are severe, so it’s important to ensure you and your scheme follow the regulations. Help Me Auto Enrol are experts in auto enrolment: and provide our 100% guarantee that Compliance will be certified and Registered with the Pension Regulator.

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