Workplace Pensions & Auto-Enrolment Duties: What Every UK Employer Must Know

Why Auto-Enrolment Matters for Employers

Since the introduction of auto-enrolment, every UK employer has a legal duty to put eligible staff into a workplace pension and contribute to it.

While designed to improve retirement savings, the rules place a significant compliance burden on directors and payroll managers. Failing to meet these obligations can result in fines from The Pensions Regulator (TPR) and serious reputational damage.

This guide explains the legal requirements, contribution levels, re-enrolment duties, and penalties that employers must understand to stay compliant.

Legal Auto-Enrolment Requirements for Employers

All employers must:

• Automatically enrol eligible employees aged 22 to State Pension Age earning over £10,000 a year into a workplace pension.

• Provide written communication to staff about their rights.

• Register compliance with The Pensions Regulator within five months of their duties start date.

Exemptions exist for some directors and staff categories, but employers must document why an employee is not auto-enrolled.

Contribution Levels: Employer & Employee Duties

Auto-enrolment requires minimum pension contributions based on an employee’s qualifying earnings (£6,240 – £50,270 in 2025/26).

• Employer minimum: 3%

• Employee minimum: 5%

• Total minimum: 8%

Employers can choose to contribute more, but never less. Contributions must be paid on time and reported accurately.

Re-Enrolment Duties Every 3 Years

Every three years, employers must:

• Re-assess staff who opted out or ceased membership.

• Re-enrol any eligible staff automatically.

• Re-declare compliance with The Pensions Regulator within five months of the re-enrolment date.

Missing this step is a common pitfall that can trigger regulatory action.

The Fines for Non-Compliance

The Pensions Regulator has robust powers to enforce compliance. Penalties include:

• Compliance Notice / Improvement Notice – first warning.

• Fixed Penalty Notice – £400 fine for failing to meet duties.

• Escalating Penalty Notice – daily fines of £50 to £10,000 per day, depending on the size of the business.

• Civil Penalties – up to £5,000 for individuals and £50,000 for organisations in serious cases.

Repeat or deliberate failures can also lead to court action.

How Wexley Ensures Compliance & Efficiency

At Wexley & Associates, we help directors and payroll teams:

• Set up and maintain compliant workplace pension schemes.

• Ensure contributions are paid accurately and on time.

• Manage the re-enrolment process every three years.

• Avoid fines and scrutiny from The Pensions Regulator.

Our proactive approach means clients stay fully compliant while focusing on running their business.

Call to Action: Stay Ahead of Auto-Enrolment Duties

Workplace pensions are no longer optional — they are a legal requirement with significant financial consequences if mishandled. With expert guidance, you can protect your business, employees, and reputation.

Contact Wexley & Associates today to keep your pension duties fully compliant.

References

• The Pensions Regulator: Auto-Enrolment Duties

• GOV.UK: Workplace Pensions and Employers’ Duties

• Related Wex Insider article: Payroll in Limited Companies: PAYE, NIC & Benefits Explained