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Warning over using postponement for auto-enrolment 28 June 2012

Postponement is not suitable for everyone

Karen Bull, product strategy manager at MidlandHR, says employers should consult on whether postponement is the right course of action for their particular auto-enrolment situation.

“As pensions auto-enrolment finally rises to priority status for employers, one of the key areas of confusion that emerges from our customers is around postponement,” she said.

“Many of them have been advised by pensions providers that automatic postponement is a best practice process to implement in order to buy time between the assessment of eligibility and the auto enrolment of employees.

“While it can be useful for smoothing out the potential for unnecessary auto-enrolment of short term workers, among other things, in fact the use of postponement is not a one size fits all solution.”

Large employers will begin auto-enrolling this year – but auto-enrolment employee safeguards come into force for all employers from next week as reported in Payroll World here

Discuss this article with other payroll professionals on LinkedIn here

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