Friday 6 April 2012

PENSIONS AUTO-ENROLMENT UNDERMINES GOVERNMENT’S PROMISE TO CUT RED TAPE

Pensions auto-enrolment will add “another layer of red tape and bureaucracy” for employers, break- ing the Government’s promise to reduce the burden of red tape on businesses. Daniel Barnett, an employment lawyer, made the comments in response to a survey that found that pension auto-en- rolment was the top concern for employers and HR professionals for the year ahead.

33% of the 1,400 people surveyed by Barnett said that the introduction of pensions auto-enrolment would be their biggest challenge this year. Once it comes into force, employers will have to automatically enrol eligible employees into qualifying workplace pension schemes and make mandatory employer contributions. The date on which employers will have to begin auto-enrolment will depend on their PAYE scheme size, with the largest employers having to auto-enrol employees from 1 October 2012.

Barnett commented that “employers are being left confused and uncomfortable” about what seems like another layer of red tape and bureaucracy. The survey also found that more than a quarter of HR professionals would like to see the Agency Workers Regulations scrapped and 26% want the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) to be abolished. However, employers were largely positive about the upcoming reforms to the employment tribunal system, which include the introduction of fees for employees bringing tribunal claims and an increase in the qualifying period for unfair dismissal, with 56% believing that it will reduce the number of claims.

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