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Employee Benefits News

Latest News
03 Jun 2013

Survey Shows Some Small Businesses Plan To Avoid Auto Enrolment

Some small firms in Britain may try to avoid implementing automatic enrolment into workplace pension schemes, the Institute of Directors has alerted. Recent research it conducted into small businesses preparedness for the process showed that some companies have planned not to comply with regulations.

Small businesses are not required to provide workplace pensions to their workers until 2017, but some of them are already considering how to dodge their duties, Money Marketing reported. The majority of the 1,327 respondents were generally positive about the changes to the UK retirement system and approved of the government´s attempt to boost savings rates. However, a number of interviewed members of the Institute of Directors admitted that they would not be offering pensions.

One of the interviewees even said that the move is designed to ‘steal more money´, while another one stated that there was no way his organisation would be forced to do what it did not want to. Both these respondents represented firms with fewer than 50 employees, the Institute of Directors explained.

The authors of the research noted that in previous polls there were no intentions of non-compliance expressed, which could be a sign of a worrying development. Apparently, as deadlines for compliance come closer, small employers are getting more intimidated by the task and are tending to adopt a hostile approach towards the reforms, Money Marketing said.

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