Short-notice inspections are being utilised by The Pensions Regulator (TPR) to catch employers that flout their automatic enrolment (AE) pension duties.
The regulator is using data to pinpoint specific employers who they suspect are breaking the law, including those businesses that fail to put staff into a pension or those that make no or incorrect pension contributions.
TPR’s Director of Automatic Enrolment, Darren Ryder, said: “TPR is increasingly led by our data and intelligence streams which enable us to detect potential non-compliance and take swift action against individual employers. This allows us to target our resources in a very focused way as part of our role to protect pension savers.”
Short-notice inspections are particularly effective because it is mandatory for employers to take part in these – obstructing an inspector and failing to provide information when required are criminal offences. Non-compliance could also result in fines or court action.
The inspections are due to start this week and continue over the summer across the UK. TPR will also be directly contacting other employers suspected of non-compliance by phone to validate the information held related to them meeting their duties, to ensure they are complying fully.
“We know the vast majority of employers are doing the right thing for their staff, however there are a small minority who persistently ignore their responsibilities. They can expect a knock at the door from us and enforcement action,” concluded Ryder.
