Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Pensions auto-enrolment comes into force for largest employers

01 October 2012 #Employment

New laws have come into force on 1 October 2012, that require UK employers to automatically enrol eligible workers into a pension scheme and make mandatory minimum contributions on their behalf. The reforms are being implemented gradually, with only large employers that employ 120,000 or more staff having to comply from today, and those employing 50,000-119,999 staff having to comply by 1 November 2012. By October 2013, employers employing more than 800 employees will be subject to auto-enrolment. Smaller employers will have later staging dates depending on employee numbers. Full details of the staging date timeline can be accessed here.

In summary, from the date the duties apply, employers must arrange for all eligible “jobholders” that include permanent and temporary employees and agency workers, to be automatically enrolled into a qualifying pension scheme, which can be an existing occupational or personal pension scheme provided it meets certain requirements. Alternatively, employers can enrol jobholders into the National Employment Savings Trust (NEST), a government-established scheme. Employers will also be obliged to pay mandatory minimum contributions into the pension scheme or, when dealing with a final salary scheme, offer a minimum level of benefits.

For more information on the scope of the duties for employers and which staff will be eligible, please see the Auto-Enrolment Factsheet. For the issues employers need to consider in the lead up to the new pensions regime see our checklist.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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