The Pensions Regulator has warned smaller employers about the financial consequences of failing to comply with escalating penalty notices (EPNs).
In a recent press release, the Regulator revealed that 95% of small employers subject to automatic enrolment had complied with their legal duties. However, its most recent compliance report reveals that 96 EPNs were issued by the Regulator in the first three months of 2016, compared to just 31 between July 2012 and December 2015.
EPNs are only issued to employers who fail to comply with a fixed penalty notice. If the recipient of an EPN does not comply with its requirements within 28 days, they will be liable to a fine that increases daily. For small employers with one to four employees, EPN fines increase by £50 per day, and fines for employers with between 5 and 49 employees increase at a rate of £500 per day. Commenting, Charles Counsell, Executive Director of automatic enrolment warned employers that failing to act means “clocking up a significant penalty”.