The Pensions Regulator is warning employers who ignore their auto-enrolment duties that they could face a County Court Judgment, as its latest enforcement bulletin revealed the number of fines has increased.

The regulator issued 2,919 fixed penalty notices in the last quarter, out of 9,831 which have been issued since the policy was introduced in 2012. However, the regulator noted that this figure is rising in proportion to the increasing number of firms meeting their staging dates.

As a result, the regulator has warned that employers who receive a fine for failing to meet their auto-enrolment duties, and do not pay the fine, could receive a County Court Judgment. It has already issued some CCJs to a small number of employers.

This can happen when employers persistently ignore penalty notices sent to them by TPR. Employers that fail to pay within 30 days of receiving the CCJ, will have the details entered on their credit record.

The report has the example of a South London removals firm who took nearly two years to comply with their automatic enrolment duties, despite receiving two fixed penalty notices (FPNs) and an escalating penalty notice (EPN). It was only when TPR applied for a CCJ that the employer became compliant and paid their fines.

Commenting, TPR Charles Counsell executive director of automatic enrolment: “A CCJ goes onto an employer’s credit record and remains there for six years, seriously affecting their ability to borrow money for their business in the future. Burying your head in the sand and ignoring your legal duties means your staff are missing out on pensions they are entitled to and your credit rating and reputation could be hit.”

Furthermore, the regulator has noted that the hospitality sector is at higher risk of non-compliance. The sector, which includes hotels, pubs and bars, has received a higher percentage of fines. TPR noted that it is an area which typically includes a large proportion of employees on non-standard contracts, which in part explains the higher proportion of non-compliance.

Counsell added: “Our message to small and micro employers has always been to ensure they leave enough time and be clear about what they will need to do to comply. We are here to help – but we will take action if an employer is wilfully non-compliant.

“There’s plenty of information on our website on how to assess and enrol people who work varying hours, so there’s no excuse not to comply.”

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