Director only companies and auto enrolment responsibilities [Video]
The latest video from The Pensions Regulator (TPR) answers the questions in regards to how the workplace pensions reform affects companies that are made up of only directors.
The quick 10 minute video goes through how to classify a director as an employee and what to do if you receive a letter from TPR explaining that you need to meet your auto enrolment duties but you don’t think that your employees meet the criteria due to director status.
The video begins by classifying who counts as a worker and the certain criteria that they must meet to be affected by the auto enrolment legislation. The description of a worker; or “entitled worker”; is a description of anyone that has the right to join a pension scheme under auto enrolment if they wish to (as opposed to someone meeting certain criteria that must be auto enrolled).
The next part of the presentation goes on to explain who is classed as a “Personal services worker” and then how the legislation further affects them. This could include whether a carer is classed.
There is further emphasis on contracts and how the terms of engagement/employment can be implied rather than implicitly stated. Clarification is also on what to do if a worker has more than one contract with an employer.
Then on to the main topic. Is a director a worker? The answer is explained in the video along with what to do if there is more than one director within the company.
The recommendation is that if after this advice, you have employees but you don’t think that they count as workers and therefore, shouldn’t be auto enrolled, then you can view the page on TPRs website to find out what to do next:
Find out more about auto enrolment and what IRIS can do to help if in fact you do have workers that need to be auto enrolled into a qualifying pension scheme: