The Pensions Ombudsman (TPO) has upheld a complaint against RQ Cafe Limited for failing to pay contributions into a worker’s Nest pension due to maladministration.

The group was ordered to pay £1,872.78 into the scheme, as well as ensure that the complainant, Mr N, is not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

The employer was also ordered to pay Mr N £1,000 for the "serious distress and inconvenience" it has caused him.

Mr N complained that the employer, despite deducting contributions from his pay, had failed to pay them into the scheme.

TPO asked the employer for its formal response on 8 May 2024, and again on 23 May 2024, 10 June 2024, and 25 June 2024, but none of these requests received a response.

However, in July the employer responded to the adjudicator's opinion, informing TPO that the company had stopped trading in January 2023, therefore it was unable to pay its outstanding debts.

In response, TPO informed the employer that the company was showing as active on Companies House so the complaint would be passed to an ombudsman for a determination.

The deputy pension ombudsman, Anthony Arter, agreed with the adjudicator’s opinion.

In his decision, Arter stated: “I find that employee contributions were deducted but held back by the employer and not paid into the scheme. The employer failed to rectify this and did not engage with TPO or Mr N.

“The employer’s failure to pay employee and employer contributions into the scheme amounts to unjust enrichment and has caused Mr N to suffer a financial loss. The employer shall take remedial action to put this right.”

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