The Government pensions watchdog has told employers they must not neglect their automatic enrolment responsibilities.

Figures from The Pensions Regulator (TPR) show the overall use of automatic enrolment enforcement (AE) powers is back to pre-pandemic levels following steps introduced to support employers through the early months of the crisis.

The regulator says it has continued to closely monitor compliance and use its powers where necessary to ensure employers remain on track.

Compliance with the law has remained high throughout the crisis, including maintaining pension contributions.

Mel Charles, Director of Automatic Enrolment at TPR, said: “We have been clear with employers throughout the pandemic that they continue to have automatic enrolment duties and the majority have done the right thing for their staff despite the challenges. 

“While we introduced measures in the early months of lockdown to allow struggling employers more time to achieve compliance and avoid being unduly fined, the figures demonstrate we have continued to robustly protect savers, using our powers where necessary to protect savers.” 

Mr Charles urged employers to ensure they plan ahead, including financial planning, so they continue to make the correct pension contributions for their staff without the need for TPR to take enforcement action.

Contributions heading back to normal

Meanwhile, a new survey shows that employee pension contributions have started to approach pre-pandemic levels.

A report by the Royal London company shows that around three in five employees who reduced or stopped their pension contributions during the COVID-19 crisis have restarted them.

It also highlights the fact that around 15 per cent of staff do not think they are saving enough for retirement.

A survey by the pension provider last year found one in five people who contributed to a pension either reduced or stopped payments, with millennials most likely to pause or slash contributions.

However, one in six still think they are not paying enough into a pension for their retirement.

According to the Royal London survey, the average current pension contribution – not including employer contributions – among those who had restarted or increased their payments was 4.9 per cent of their salary.

Nearly half (47 per cent) think they are paying enough but still need to increase their contributions, and a third (33 per cent) think their contributions are adequate.

For help and advice on matters relating to employment law, contact our expert team today.

Up to a million people were facing uncertainty as the Coronavirus Job Retention Scheme, or furlough, was wound up at the end of last month.

This left employers with various decisions about how to deal with returning workers or indeed if there was a job to return to.

This was despite there being a record amount of job vacancies recorded in August. The nature of some working methods will have changed, and firms will need to work on their recruitment and retention strategies in a different labour market.

Questions HR departments may need to be asking:

What extra support do we provide for returnees?

Many will have been off for months and will need time to reintegrate into the workforce. Refresher courses and other measures to get workers back up to speed may be necessary.

How do we handle redundancies?

Employers have a duty to consult staff in a transparent and fair process laying out the reasons for the redundancy. The process an employer should follow includes collective consultation where appropriate and taking account of employee rights, including notice periods and pay.

Should we make use of flexible working?

Term-time working would allow staff to remain on a permanent contract but offer the chance to take paid or unpaid leave during school holidays. Job-sharing could also mitigate the number of potential jobs losses.

Are we in a position to redeploy staff?

If a position has been lost through the pandemic, it could be that an alternative position could open up for redeployment. It may be that measures such as short time working, temporary layoffs and making use of annual leave hours accrued could be employed until business picks up again.

The end of furlough comes as figures from the Office for National Statistics (ONS) show that a quarter of the workforce had been on furlough at some point between March 2020 and June 2021.

By August 2021, the scheme had supported 1.3 million businesses and 11.6 million jobs.

According to the statistics, those furloughed for more than three months were less likely to be in employment by August 2021 when compared to those who were furloughed for a shorter time. In addition:

• Eight per cent of people who were furloughed at some point were no longer employed in the three months to June 2021.
• Employees with GCSEs as their highest qualification were more likely to have been furloughed than those with degrees or equivalent qualifications.
• The age groups most likely to have been furloughed were those under the age of 24 and over the age of 65. This accounts for 30 per cent of all on furlough and compares with 23 per cent who were aged 35 to 44 years.
• Part-time workers and single parents were also more likely to have been furloughed.

The highest furlough rates remained in industries severely affected by social distancing rules, such as accommodation and food and arts and entertainment.

For help and advice on matters relating to employment law, contact our expert team today.