First UK Firm Fined for Pension Law Breach.

Date: 15/02/18

First UK Firm Fined for Pension Law Breach.


An Oldham bus company has become the first firm to be prosecuted for breaking the law by denying their staff the pensions they are entitled to. The Pensions Regulator ruled that Stott’s Tours should have begun pension contributions for its staff in June 2015, but had failed to comply with the Pensions Act 2008. As a result, the firm has been ordered to pay more than £39,000 in backdated contributions, fines and legal costs. 

The Pensions Act 2008 rules that every employer in the UK, where appropriate, must contribute towards a pension scheme for their staff. This auto enrolment has been phased in since 2012 and ensures that, unless already signed up to a workplace pension, some of a worker’s salary is automatically diverted to a pensions saving pot. The employer also makes a contribution and tax relief from the government is added to the total amount. Individual members of staff do have the right to opt out of the scheme, therefore not contributing from their salary but also losing the employer’s and government contributions.

The current total minimum contribution is set at 2% of earnings. 0.8% of this comes from the worker, 1% from the employer and 0.2% in tax relief. This is set to rise to 5% of earnings as of April this year, and then to 8% from April 2019.

It is so important that companies comply with this legislations as automatic enrolment is not optional, it is a legal obligation. For advice on this and related payroll services, please call us on 01524 67111 and we will be only too happy to help.


Lorraine Wilkinson

Author: Lorraine Wilkinson

​Lorraine joined Scott & Wilkinson in 2001 bringing with her over 20 years payroll experience. As payroll manager, she oversees the smooth running of the firms payroll bureau which includes all aspects of day to day payroll. Lorraine is...

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