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Employment Legislation Update July 2012

Employment Law solicitor Hazel Philips advises that the clock on Pension Auto Enrolment stars running from October 2012.

The clock on Pension Auto Enrolment will start from October 2012. Although it is only the very largest employers who will be affected at first (only employers with 121,000 or more employees will need to worry about the 2012 date), new rules came into effect at the beginning of this month which prohibit employers from inducing or offering incentives to staff to opt out of the new auto enrolment scheme.

Any employer who is found to have pressurised staff into opting out of the new pension regime in contravention of these rules could be subjected to a large fine.

The new rules will apply to both existing employees and new appointments and will make it an offence to incentivise employees to exercise their right not to join the automatic enrolment scheme.  Examples of such incentives, would be making a job offer conditional upon an opt out or offering a higher salary in exchange for that opt out.

Employers should not be surprised that such anti-avoidance measures are part of the new regime but should take care not to fall foul of these new rules.

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Published: Friday 13th July 2012
Categorised: Employment

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