Guest Comment: Auto-Registration Compliance and Gig Economy

Our latest compliance and enforcement bulletin shows that the use of our powers has remained stable over the past six months.

The report shows that the total number of auto-enrollment powers used between January and July 2021 is 58,303 compared to 77,032 in the previous semester.

The decrease represents a reduction in the number of employers who were required to complete their re-registration tasks between January and June of last year.

We’re glad compliance has remained high, but we’re not complacent. We continue to monitor employer behavior closely to ensure that staff do not miss out on pensions due to them.

It is essential that employers hire their staff as soon as they start working for them and pay the correct pension contributions on time.

Employers also need to ensure they meet their re-enrollment responsibilities, giving workers who have withdrawn another opportunity to save.

Where savers miss out, we will take action, including financial penalties.

We also continue to closely monitor the gig economy. We recently welcomed the news that Evri (formerly Hermes UK) is now taking steps to give its workers access to retirement savings.

We want to see all gig economy employers recognize and meet their auto-registration obligations quickly and voluntarily.

The gig economy is set to grow and it is normal that workers who contribute to the economy have the opportunity to save for their retirement.

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