Many businesses across the UK have peaks and troughs in their trade, depending on the season. And some, as a result, have to take on more helping hands to cover the workload just during that particular spell.
Businesses in this position have been reminded by HM Revenue and Customs not to forget about the matter of workplace pensions for temporary staff they’re hiring. Particularly because it could lead to financial penalties if they don’t comply correctly and in time.
In an online notice, HMRC told employers hiring staff for a limited period: ‘you must check if these workers are eligible for automatic enrolment into a workplace pension. Employers must individually assess any seasonal or temporary staff every time they pay them. This includes staff with variable hours and pay, whether they are employed for a few days or longer.’
Furthermore, officials warned about sanctions for companies who don’t abide by the pension rules: ‘Employers who fail to comply with their workplace pensions’ duties may receive a warning notice with a deadline to comply. Those who continue to fail to comply risk a fine.’
Employers were also advised that they can use ‘postponement to delay assessing’ employees who will be brought on board for under three months. HMRC added: ‘This pauses the duty to assess those staff until the end of the three-month postponement period.’