When you can apply postponement for automatic enrolment

Postponing assessment of your team means that, as an employer, you can delay assessing and automatically enrolling your team into a workplace pension for up to three months.

It is possible to use postponement from:

  • Your company’s duties start date
  • An employee’s first day working for the company
  • The date when a team member’s circumstances change and they meet the criteria for automatic enrolment, such as a pay increase or birthday

 Postponing assessment from an employee’s first day of work can be useful, for example, if they are on a probation period or working at an agency where they may not have regular hours. Similarly, if you employ seasonal temporary workers who will only be working for a short period of time, you may wish to postpone assessing them to prevent them being enrolled into a pension for a very short period of time.

Another example is if an employee is on a basic salary below the £10,000/year threshold but receives an annual bonus which takes them above the threshold for one month. In this case, the individual would be automatically enrolled when they receive their bonus and thereon afterwards, even when their pay goes back below the threshold. If you choose to postpone individuals in situations such as this, it would avoid triggering automatic enrolment.

Using postponement from your company’s duties start date, does not change your company’s duties start date. As an employer, you must still get everything set up by your duties start date. You also need to let your team know that they will be postponed from assessment within six weeks of the company’s duties start date, their start date or the date they first become eligible for automatic enrolment.

You also need to be aware that any individual can choose to opt in to the workplace pension during their postponement period.

Roisin Gray

Posted on Tuesday 28 Mar, 2017, 3 years ago

April 18, 2018

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