Auto Enrolment – Potential employer opt out powers

Auto Enrolment – Potential employer opt out powers
Sam Woods
Written by Sam Woods
Friday, 05 July 2013 11:20

The Department of Work and Pensions is currently reviewing a policy whereby Employers can opt out staff who are otherwise considered eligible for auto enrolment if specific criteria is met.

Clause 34 would enable Employers to opt out employees with unique circumstances:

  • An Employee has handed in their notice but leaves after the Company staging date.
  • Retiring after the staging date but has ceased contribution before.
  • An employee who will lose tax breaks due to already accrued savings.

Current legislation only enables the employee the ability to opt out of auto enrolment and many employers will welcome a clause which restricts unnecessary contributions.

The DWP is actively reviewing these proposals and staging test scenarios and will publish further drafts in Autumn.

For more information about auto enrolment and payroll solutions designed for to ensure your compliance please get in touch




Sam Woods

Sam works within our Healthcare Team processing payrolls spanning the growing Care Sector. Sam is also one of our keen bloggers and helps on special projects like Real Time Information and internal systems to name only a few.

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