16 November 2015

Workplace Pension Auto-Enrolement

Where auto-enrolment applies it is not optional. An employer must enrol all eligible employees into its workplace pension. The only exception is where employees voluntarily opt out. However, there are exceptions.

If you are the sole director of a company and you do not have other employees auto-enrolment does not apply.

The position for husband and wife companies can be slightly more complicated. If you are both directors and do not have contracts of employment in place auto-enrolment does not apply. The same applies if you are both directors and one of you has a contract

If one of you is a director and the other an employee auto-enrolment applies in respect of the employee only

What about larger family companies?

The position is similar to that for husband and wife companies. Your company might consist solely of family members who are all directors or a mix of directors and employees.

Alternatively, while controlled by your family it might have some non-family directors. The key to deciding whether auto-enrolment needs to be considered is whether or not employment contracts exist. If they do then auto-enrolment applies.