Thursday 11th May 2017

Auto enrolment 42k fine

Johnsons Shoes Company fined a total of £42k for failing to set up a pension for their employees by their staging date.

Following several attempts by The Pensions Regulator to communicate with the company to enable them to meet their duties, they decided to take enforcement action. A Fixed Penalty Notice was issued, but Johnsons refused to pay. The company’s excuse that pressures of work were to blame was not considered reasonable by The Pensions Regualtor, as they had been sent several reminders over a period of 12 months. 

An Escalating Penalty Notice was issued, a daily fine of £2,500 which eventually amounted to £40,000. Johnsons refused to pay the fines, so The Pensions Regulator lodged a County Court claim which led to an additional £2,000 court fee for Johnsons.

Ultimately, Johnsons complied with their auto enrolment duties, including backdating all contributions they should have made from the original staging date, but also ended up with £42,000 of fines to pay.