First auto enrolment prosecution costs company £60,000

Stott Tours pleaded guilty to 16 offences of wilfully failing to comply with The Pensions Act 2008, the first such prosecution by The Pensions Regulator. The bus company will have to pay more than £60,000, consisting of backdated pension payments and fines. Stott Tours should have placed 36 staff into a workplace pension and the payments should have begun in June 2015. It was decided that the failure to comply with the laws was deliberate and merited the criminal prosecution of Stott Tours and Alan Stott, Managing Director.

Darren Ryder, The Pension Regulator’s Director of automatic enrolment, said:

“Compliance with automatic enrolment remains very high and so it’s extremely disappointing that a tiny minority of employers continue to flout the law by denying their staff the pensions they are entitled to.

This case shows the cost to employers that failing to comply with automatic enrolment can bring – a bill of tens of thousands of pounds, a criminal conviction and a damaged reputation.”

Aspire Comment

This case is the first example of The Pensions Regulator enforcing its powers regarding auto enrolment. It shows that there are serious penalties for failing to comply with the Pensions Act 2008. If you require advice on auto enrolment please contact us at  enquire@aspirepartnership.co.uk or call us on 0121 445 6178.