1. Automatic enrolment Auto-enrolment and small businesses
ICB Inspire Tour
Jeremy Leslie-Smith Industry liaison manager
February 2016
The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. 1

2. Topics Why is automatic enrolment being introduced?
The employer duties explained
Compliance & enforcement update
Questions

3. 7 million people are under-saving
Why is automatic enrolment being introduced?
7 million people are under-saving
As a society we are living longer, healthier lives.
There are currently four people of working age for every pensioner  by 2050 there will be just two.
Millions of people are under-saving for their retirement.
Only 1 in 3 private sector workers were in a pension scheme in  and the trend has been downwards for the last 40 years.
The reforms being introduced now will help millions of individuals to save more (or save for the first time) for their retirement.

4. Overview of legal duties and safeguards
Automatic enrolment legislation gives employers a duty to:
automatically enrol all staff who are eligible (‘eligible jobholders’)
other staff who have the right to ask to opt in or join a pension
communicate to their staff
manage opt outs and promptly refund contributions
every three years, automatically re-enrol staff who are eligible
complete a declaration of compliance with the regulator
keep records
maintain payments of pension contributions
The employee safeguards mean that employers:
must not induce staff to opt out or cease membership of a pension, and
must not indicate, when recruiting new staff, that the decision to employ them will be influenced by whether or not they intend to opt out.

5. Customising the steps for different employers

6. Small/micro employers
Staging
The employer duties apply to each employer from their staging date:
the duties apply to all of the employer’s workers from that date.
An employer’s staging date will be based on the PAYE scheme or schemes that were being used on 1 April 2012.
After 1 April 2012, any change to the PAYE schemes being used will have no effect on the staging date.
However, new employers* will go last, from May 2017.
Do not assume your clients know their staging date - check this on our website
Oct 2012
May 2017
April 2014
June 2015
Large employers
Medium employers
Small/micro employers
New* employers
Feb 2018
*Employers that did not exist (or were not using a PAYE) as at 1 April 2012. 6

7. Staging profile Very large volumes staging from January 2016
(excludes those without
eligible jobholders and
employers with no workers)
Very large volumes staging from January 2016
We estimate* that almost a million employers yet to stage will have full automatic enrolment duties
* Based on age and earnings data from HMRC

8. Who is subject to automatic enrolment?
A person is likely to be subject to the automatic enrolment legislation if they are:
aged 16 to 74 (inclusive), and
work or ordinarily work in the UK*, and
it does not matter if they are full or part-time, permanent or temporary.
There may be other people who will also be included:
overseas workers, who are considered ordinarily working in the UK.
Workers will include:
employees, and
people who are not employees (excluding directors) who are personal services workers.
* the Channel Isles and the Isle of Man are outside the UK

9. Are they a personal services worker?
The employer needs to judge whether or not an individual (who is not a director) with a contract to perform work or services personally* is undertaking the work as part of their own business.
Does the employer:
have control over an individual’s method of work (eg hours worked)?
provide any employee benefits?
bear all the significant financial risks in carrying out the work (eg the worker is not financially responsible for their faulty work)?
consider the individual to be part of their own organisation?
provide what is required for the individual to carry out the work (eg tools)?
 If most or all of the above are true, then it would be reasonable to consider that they are not undertaking the work as part of their own business – and they are a personal services worker.
The list above is not exhaustive and an employer must take into account all relevant considerations and make a reasonable judgement.
* ie they cannot freely send a substitute or sub-contract the work, unless they are unable to perform the work themselves (eg due to sickness) 9

10.  Who is excluded? Exclusions from automatic enrolment duties include:
some office-holders who are not considered workers, (eg non-executive director, trustee or elected member), but they are only excluded for the activities they carry out as an office holder
serving members of the military are not workers
a company with only one employee, if that employee is also a director of that company (but only for the work they carry out for that company).
From 1 April 2015, new exceptions were introduced covering workers*:
in their notice period
who have previously ceased active membership of a qualifying pension
with HMRC tax protected status for their pension savings
who have received a pension winding-up lump sum payment.
*see additional slides for more detail 10

11.    Is a director a worker?
A director of a company is not classed as a worker, unless
the individual works for the company under a contract of employment
and
there is at least one other person working for the company under a contract of employment
A director who is not working under an employment contract is never classed as a worker
The exemptions can apply to more than one director working for the same company    11

12. Example of sole employee/director exemption
Type of work contract between
the individual and this company
Employer duties apply to this individual?
Sole director/employee - Peter
(who is a director of this company with an employment contract) X
Additional director - Sarah
(not on an employment contract)
Additional director - George
Additional director - Linda
(has a written contract of employment)
√ (Peter* and Linda)
*Now there are two directors with contracts of employment duties apply to both Peter and Linda. This would be the same even if Linda was not a director and was just an employee - Peter’s exemption would stop when she joined.

13. Who is the worker’s employer?
For a worker who works under a contract of employment (an employee) or who is a personal services worker directly contracted to perform work for the company who pays them:
 the employer will be the legal entity named in the contract
Otherwise:
for a worker who is supplied by an agent to a third party, to perform work personally, under a contract or arrangement between the agent and the third party, then:
the agent or third party will be the agency worker’s employer, depending on which is responsible for paying the worker
or, if it cannot be determined who is responsible for paying the worker, then whichever actually pays the worker will be considered as their employer. 13

14. Worker categories -Eligible Jobholder Under £5,668† pa
Qualifying earnings
Age range
16-21
22-SPA*
SPA*-74
Under £5,668† pa
Between £5,668 pa and up to £9,440† pa
Non-Non-Eligible Jobholder
Non-Eligible Jobholder
Eligible Jobholder
More than £9,440† pa
Non-Eligible
Jobholder
Non-eligible jobholders can opt in to an automatic enrolment pension scheme
Up to £5,824** pa
Entitled worker
Can request to join a pension scheme
Over £5,824 pa and up to £10,000** pa
NonNon-eligible jobholder
-Eligible Jobholder
More than £10,000** pa
Non-eligible
jobholder
Eligible
jobholder
Non-eligible
jobholder
Employer must automatically enrol eligible jobholders into an automatic enrolment pension scheme
* SPA = State Pension Age
** Figures for 2015/16

15. Thresholds v pay reference periods (PRP) 2015-16
Pay reference period/cycle †
Lower
level of qualifying earnings
Earnings trigger for automatic enrolment
Upper level of qualifying earnings
Annual
£5,824 pa
£10,000 pa
£42, pa
Bi-annual
£2,912.00
£4,998.00
£21,193.00
1 quarter
£1,456.00
£2,499.00
£10,597.00
1 month
£486.00
£833.00
£3,532.00
4 weeks
£448.00
£768.00
£3,261.00
Fortnight
£224.00
£384.00
£1,631.00
1 week
£112.00
£192.00
£815.00
† For other PRP durations, multiply the number of weeks in the PRP by the weekly amount (eg £192.00) or number of months by the monthly amount (eg £833.00) etc - or pro-rata if not an exact multiple of any of the above.
N.B. The Secretary of State will review these figures each tax year.

16. Assessing your staff
Employers will need to assess all their staff on their staging date
unless they choose to use ‘postponement’ (described in later slides).
Their qualifying earnings must be used to assess their category (ie eligible jobholder, non-eligible jobholder or entitled worker).
Qualifying earnings is any component of pay that could be considered one of these pay elements (an employer should use their reasonable judgement):
salary/wages, commission, bonuses, overtime and some statutory payments (excluding expenses and dividends).
Eligible jobholders must be automatically enrolled into a suitable scheme
but any active member of a ‘qualifying’ pension scheme with that employer will not need to be automatically enrolled.
After the staging date, employers will have to:
assess all new staff who join them
assess some staff every pay period (see slide on ‘Monitoring eligibility’)
assess some staff again every three years (see slide on ‘Re-enrolment’).

17. Postponement does not change or delay the staging date
Postponement suspends the duty of automatic enrolment and the need to assess and can be used:
at the employer’s staging date for any or all existing staff
on the first day of employment for any new joiner after the staging date, and
on the date a member of staff meets the criteria to be an eligible jobholder.
Only one postponement per member of staff can be made at a given time.
Each worker can be postponed from one day up to maximum of three months.
The employer must notify any postponed member of staff within six weeks and a day of the start of postponement.
The member of staff has the right to opt in or join during postponement.
Employer must assess on the last day of postponement and:
automatically enrol eligible jobholders, and
for those staff not eligible, monitor them each future pay period.

18. Monitoring eligibility for automatic enrolment
After the staging date, employers will have to assess, every pay period, any worker who:
is not an active member of a qualifying pension scheme, and
is not under postponement or the transitional period, and
has not previously been automatically enrolled (or assessed as an eligible jobholder whilst an active member of a qualifying schemeϮ).
Workers assessed as an eligible jobholder would then need to be automatically enrolled (or postponed).
Those workers that do not fall into the above category should be left until the next cyclical re-enrolment date (see slide on cyclical re-enrolment).
Ϯ A worker who has simultaneously been an eligible jobholder and an active member of a qualifying scheme since the later of:
the employer’s staging date; or
the date they started work for the employer; or
the last day of postponement.

19. Pensionable earnings
Pensionable earnings can be based on qualifying earnings OR another definition (eg basic pay).
When qualifying earnings are used to determine pensionable pay:
pension contributions are determined by the rules of the scheme, and
will be based on banded earnings between the lower earnings threshold and upper earnings limit (currently £5,824*pa and £42,385*pa).
If pensionable earnings are not based on qualifying earnings, the employer can self certify if the scheme meets certain minimum criteria:
‘Set 1’ - if basic pay from £1 is pensionable, or
‘Set 2’ - if at least 85% of total pay (scheme average) is pensionable, or
‘Set 3’ - if 100% of total pay is pensionable.
* Pro-rata of annual amount used in each Pay Reference Period. These figures are for The Secretary of State will review this amount each tax year.

20. DC scheme minimum contributions
Phase 1
Phase 2
Phase 3
Oct 2012
May 2017
April 2014
June 2015
Large employers
Medium employers
Small/micro employers
New employers
Min DC 8% total*
Min DC 5% total*
*% of qualifying earnings
Min DC 3% employer*
Minimum DC 2% total contribution*
Min DC 2% employer*
Minimum DC 1% employer contribution*
April 6th †
April 6th 2019 †
Feb 2018
† Subject to parliamentary approval 20

21. Automatic enrolment scheme
What pension schemes can be used?
Must be used for automatic enrolment and ‘opt ins’
Workers already active members of a qualifying scheme do not need to be automatically enrolled
Automatic enrolment scheme
Employers will need to contribute to the pension scheme
Qualifying scheme
must be tax registered:
and meet minimum criteria
Employers may also use a qualifying scheme or an automatic enrolment scheme for entitled workers
Scheme for entitled workers
scheme is registered
must be registered in the UK or EEA*
must have no barrier to automatic enrolment
must be a qualifying scheme
Employers are not required to make an employer contribution
*European Economic Area states

22. Can clients use an existing pension scheme?
If clients have an existing scheme, it may not be suitable for automatic enrolment.
To be a qualifying scheme:
the contributions due must be at or above the minimum criteria
if it is a personal or GPP contract-based scheme, it is likely to need a jobholder agreement for each active member.
If it is not a qualifying scheme, it may be possible to change the scheme rules to make it qualifying.
Active members of a pension which is not qualifying would need to be assessed and, if eligible, automatically enrolled into another pension.
If they want to use a qualifying scheme to automatically enrol their workers:
the pension must have no barrier to automatic enrolment (eg default fund).
The existing pension provider may not allow it to be made a qualifying scheme or an automatic enrolment scheme - check with the pension provider.
I know only about 23% of small and micros have one already but think we should cover it

23. Choosing a new pension - how to find one
The government scheme
National Employment Savings Trust (NEST) is a pension scheme that all employers can use to meet their duties.
Schemes with master trust assurance
the master trust assurance framework provides an independent review against an industry-wide benchmark of quality
these features in our DC code represent the standards of governance and administration that we expect trustees to attain
we list those schemes that have said they’re open to all small employers looking for a scheme provider for automatic enrolment
Schemes listed by other industry bodies
Pensions and Lifetime Savings Association (PLSA) Pension Quality Mark
The Association of British Insurers (ABI) list of GPP providers

24. Opting in and joining
Entitled workers can request to join a scheme at any time, including during postponement.
Jobholders can opt in at any time, including during postponement.
However, workers will not necessarily know whether they are jobholders or entitled workers and this could vary over time.
All requests (whether an opt in or join request) are treated the same way.
On receipt of any request to opt in or join a pension from a worker, employers need to:
assess the worker, to see if they are a jobholder or entitled worker, then
enrol jobholders into an automatic enrolment scheme, and
enrol entitled workers into a scheme of the employer’s choice.
A jobholder must not be required to carry out any further action to achieve active membership (eg the pension scheme should have a default fund).

25. Opting out
Workers automatically enrolled (or who have opted in) may opt out.
Employer must inform staff of their right to opt out and how to opt out.
The employer must not give out or send out opt out forms:
requests to opt out must be handled by the scheme provider, and
completed forms would normally be sent to the employer.
A one calendar month opt out window starts on the later of two dates:
once the worker is an active member of the pension scheme, or
when the employer gives a notice of enrolment letter/ to the worker.
The worker will get a full refund of all contributions.
Early opt outs (before the opt out window starts) - are not allowed.
After the opt out window has closed, the worker may still request to cease membership of the pension scheme (under the scheme rules).
A worker who has opted out does not need to be assessed again until the employer’s next re-enrolment date (occurs approx every 3 years).

26. Communicating to workers
Employers will need to communicate to their workers informing them of their rights:
enrolment
when using postponement
and to explain a worker’s right to opt in or join a scheme.
The deadline for most communications is within 6 weeks*.
Communications must be sent directly to the individual (eg by letter, , HR web portal).
We have provided example ‘template’ letters, which may be customised.
* Postponement 6 weeks from the day after the assessment date

27. Cyclical re-enrolment
Cyclical re-enrolment occurs around every 3 years. Employer should choose a re-enrolment date which can be any day, up to 3 months before or after the third anniversary of their staging date, or previous re-enrolment date (eg an employer who staged on 1 Oct 2012 may choose any day between 1 July and 31 Dec 2015).
On the re-enrolment date, workers will need to be assessed and (if an eligible jobholder) automatically re-enrolled † if these conditions apply:
they are not already an active member of a qualifying scheme; and
they are not being monitored every pay period (ie they have previously been automatically enrolled or assessed as an eligible jobholder whilst an active member of a qualifying scheme); and
they opted-out or ceased membership of a qualifying scheme more than 12 months ago - or
if they opted-out or ceased membership of a qualifying scheme within the previous 12 months - and the employer wishes to automatically re- enrol them (ie the employer can choose whether to do this or not).
Postponement cannot be used at re-enrolment.
† Exceptions may be applied under April regulations (eg if in notice period or have tax protection)

28. Record-keeping
Employers must keep records about their workers and the pension scheme used to comply with the employer duties (pension providers and trustees will also have duties to keep records).
An employer can use electronic or paper filing systems to keep or store any records, as long as these records can be produced in a legible way.
Most records must be kept for six years. Those that relate to opting out must be kept for four years.
The records must be provided to The Pensions Regulator, on request.
We can conduct an inspection, if we have reasonable grounds to do so (for example, this may be as a result of a whistleblower alert).

29. Declaration of compliance
After staging, employers must complete a declaration of compliance
and it must be completed within five months of the staging date and
within two months after every re-enrolment date
Employers may receive a penalty fine if they do not complete their declaration on time.
Employers will need to provide certain details, for example:
which pension schemes were used to comply with the duties, and
the number of eligible jobholders automatically enrolled into each scheme.
All postponements applied at the staging date must have come to an end before the declaration can be completed.
You can start the online process early and partially complete your declaration.

30. Automatic enrolment Compliance and enforcement
Industry liaison team
December 2015
The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. 30

31. What’s happened so far …
As at the end of November 2015
73,281 employers have completed their declaration of compliance,
covering over 21m workers, of which:
9.4m (45%) were already in a qualifying scheme;
5.7m people (27%) were automatically enrolled;
427k (2%) workers had the transitional period applied;
and 5.4m (26%) were ‘none of the above’.

32. Use of powers Some of our powers used (to 30 September 2015):
44 information notices
18 statutory inspection notices
2,248 compliance notices
145 unpaid contribution notices
582 fixed penalty notices
7 escalating penalty notices
In the next 12 months over 500,000 employers will go through automatic enrolment. We expect to see a rise in the number of times we need to use our powers, so our message to employers remains clear: start getting your plans in place early or you risk being fined.
3,782 cases closed by
30 September 2015

33. Remedying a breach
What if an employer makes a mistake and fails to carry out their duties?
Tell the Regulator about the breach. TPR’s approach is an employer:
should take reasonable steps to put the worker back in the position they would have been in if compliance had occurred on time, and
should not profit from their mistake
That means the employer should:
enrol them, backdated to the original date, and
ensure backdated employer pension contributions are paid, and
ensure backdated employee pension contributions are collected
If TPR decides to take formal action against the employer and the worker should
have been enrolled more than 3 months ago, TPR has the power to:
require the employer to pay both their own and employee contributions, and
require interest to be added to outstanding contributions

34. Any questions?

35. Useful tools
Planning:
Nominate a contact:
Staging date tools:
finding out a staging date
bringing staging date forward
getting bulk staging dates (minimum of 500 PAYE schemes)

36. Useful tools
Find a letter code online:
Tell us if you are not an employer:
Bulk declaration of compliance (file upload):
Work out pension contributions:
Pay your fine online:

37. Useful links
Event presentations:
The essential guide to automatic enrolment:
Our detailed guides for employers and pension professionals:
Information about declaration of compliance:
Letter templates for employers:
To register for the automatic enrolment (‘3 coins’) logo - under registration, choose “I require pension automatic enrolment files”
Frequently asked automatic enrolment questions:

38. Useful links More information about pensions:
Schemes with master trust assurance*:
The Association of British Insurers (ABI) list of GPP providers: pension/Automatic-enrolment/Providers
Pensions and Lifetime Savings Association (PLSA) Pension Quality Mark:
National Employment Savings Trust:
A quick guide to selecting a pension scheme:
* the voluntary master trust assurance framework was developed by the Institute of Chartered Accountants of England and Wales (ICAEW) in association with TPR to enable master trusts to obtain independent assurance that their scheme governance and administration meet an industry-wide benchmark of quality.

39. Useful links More information about pensions and automatic enrolment:
Financial Advisers:
Friends of Automatic Enrolment:
The Pensions Regulator:

40. Useful links - webinars and videos
Director exemptions explained:
Automatic enrolment - common challenges november-2015.aspx
Automatic enrolment - what’s my role as a business adviser? adviser.aspx
Automatic enrolment - for business advisers.
Automatic enrolment - question time.
Automatic enrolment - declaration of compliance compliance.aspx
Automatic enrolment - are you ready?

41. Thank you We are here to help!
Request a guest speaker:
Contact us at:
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The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

42. Additional slides 42

43. Staging dates for new employers (post 1 April 2012)
PAYE income is first payable in respect of any worker
Staging date
From 1 April 2012 up to and including 31 March 2013
1 May 2017
From 1 April 2013 up to and including 31 March 2014
1 July 2017
From 1 April 2014 up to and including 31 March 2015
1 August 2017
From 1 April 2015 up to and including 31 December 2015
1 October 2017
From 1 January 2016 up to and including 30 September 2016
1 November 2017
From 1 October 2016 up to and including 30 June 2017
1 January 2018
From 1 July 2017 up to and including 30 September 2017
1 February 2018

44. Tax relief: two mechanisms
Many small employers and their advisers may not realise that there are two ways that the tax relief on staff members’ pension contribution can be applied:
Net Pay Arrangement
Relief at Source (‘not Net Pay Arrangement’)
Many pension schemes only support one tax relief method, although some pension providers allow the employer to choose either method.
It is vital to understand which system your clients are going to use, to avoid miscalculating the contributions and tax due.
For more information look at the ‘tax relief’ section at:

45. Relief at Source (‘not Net Pay Arrangement’)
For this tax relief mechanism:
only 80% of the calculated contribution is deducted because ...
... the member’s pension contribution will be taken after tax has been deducted, and
the pension provider claims 20% tax back from HM Revenue & Customs (HMRC) and adds it to their pension pot.
Higher rate taxpayers will have to complete an HMRC Self Assessment tax return in order to reclaim the rest of the tax paid on their contributions.
Staff who earn no more than their income tax personal allowance (£10,600 a year in 2015/16) do not pay tax, but they would still get the 20% tax relief (even though they haven’t paid any income tax on their contributions).
We suggest that employers with staff who do not pay income tax, choose a pension which operates Relief at source.
Group Personal Pensions, the government scheme (NEST) and some master trust pensions usually calculate tax relief this way.

46. Net Pay Arrangement For this tax relief mechanism:
no tax is payable on the member of staff’s pension contributions, so the employer deducts 100% of the contributions due, and
pays them to the pension provider (ie gross of tax).
If the member earns below their income tax allowance (personal allowance is £10,600 in 2015/16), the member will not get any tax relief benefit.
Higher rate taxpayers may prefer this method, as they would immediately get full tax relief through payroll without having to complete an HMRC Self Assessment tax return.
Contract based pensions, such as Group Personal Pensions (GPPs) may not use this mechanism.
Some, but not all, master trust pensions calculate tax relief this way.

47. Tax relief example
A weekly paid member of staff, has a basic salary of £10,400 per annum and:
is a member of a pension scheme where only basic pay is pensionable, and
is paying a 1% member pension contribution (ie 1% of £200 per week)
[the employer will also pay a contribution, but this is not affected so is not shown].
Under Net pay arrangement:
the full £2.00 per week is deducted from their gross pay and paid into their pension pot and
as the individual earns under the HMRC personal tax allowance threshold, they don’t pay income tax and are not able to claim any money from HMRC,
so the cost to the employee of the £2.00 member’s contribution is £2.00.  
Alternatively, under Relief at source:
the pension provider claims £0.40 tax relief (20% of £2.00) from HMRC,
the balance (£ £0.40) is deducted from the employee’s net pay,
so a total of £2.00 per week member’s contribution is paid into the pension
and the employee has only paid £1.60 (for a £2.00 member’s contribution).

48. Exception - staff in notice period
If notice is given or received by a member of staff (eg resignation or dismissal):
before, or up to 6 weeks after, the automatic enrolment/re-enrolment date then the employer does not have to enrol them.
During their notice period that member of staff does not have a right to opt in or join a pension.
If notice is withdrawn, then the enrolment duty will be effective from this date.

49. Exception - workers with HMRC tax protection
Where an employer has ‘reasonable grounds to believe’ (eg the worker shows them documentary evidence) that a worker has HMRC tax protected status for their pension savings (eg Primary, Enhanced or Fixed protection):
the employer may choose not to automatically enrol/re-enrol them.
The worker would still have the right to opt in/join.

50. Exception - workers who have ceased active membership - i
If a worker is assessed and triggers automatic enrolment (for the first time) and they had previously contractually joined a qualifying pension scheme* (even if before the employer’s staging date), then:
if they ceased membership 12 months or less before the assessment date – then the employer may choose whether or not to automatically enrol them (if the employer chooses not to automatically enrol them, the employer should leave them until the cyclical re-enrolment date); or
if they ceased membership over 12 months before the assessment date – then they should not be automatically enrolled, but should be left until the cyclical re-enrolment date.
Workers who have previously been automatically enrolled and opted out or ceased membership of that scheme, should not be assessed until the cyclical re- enrolment date.
This means an employer could choose not to assess any worker who has previously been an active member of a qualifying scheme - until the cyclical re-enrolment date.
* or a pension scheme that would have been a qualifying
scheme if the worker had been a jobholder when they ceased

51. Exception - workers who have ceased active membership - ii
On the cyclical re-enrolment date, the employer should identify workers:
who previously contractually joined a qualifying pension scheme* (even if before the employer’s staging date) or
who have previously been automatically enrolled into a qualifying pension scheme
and either opted out or ceased membership of that scheme.
These workers should be assessed on the cyclical re-enrolment date and, if an eligible jobholder, automatically re-enrolled - unless:
they ceased membership/opted-out within 12 months (ie 12 months or less) of the cyclical re-enrolment date - in which case, the employer may choose whether or not to automatically re-enrol them.
If the employer chooses not to automatically re-enrol them, the employer will have no duty to re-enrol them until the following cyclical re-enrolment date.
* or a pension scheme that would have been a qualifying
scheme if the worker had been a jobholder when they ceased

52. Exception - workers with winding-up lump sums
For a worker who has:
ceased membership of a defined contribution (DC) scheme, and
been paid a Winding-Up Lump Sum (WULS), and
ceased employment, and
is subsequently re-employed by the same employer...
then:
if they have an automatic enrolment / re-enrolment date which falls up to 12 months after the payment of the WULS,
the employer may choose whether to enrol them or leave them until the next cyclical re-enrolment (and the re-employed worker does not have the right to opt in or join during the 12 months after a WULS payment)
or, if they have an automatic enrolment date which falls more then 12 months after the payment of the WULS,
then they will have no duty to re-enrol them until the next cyclical re-enrolment date

53. DC self certification during phasing period
† Subject to parliamentary approval
Up to 5 April 2018 †
6 April 2018 to 5 April †
From 6 April 2019 †
Pensionable Salary (Basis of % Contributions)
Set 1
(Tier 1)
2% Employer / 3% Total
3% Employer / 6% Total
4% Employer / 9% Total
Scheme Definition
(if >= basic pay from £1)
Set 2
(Tier 2)
1% Employer / 2% Total
2% Employer / 5% Total
3% Employer / 8% Total
85% of Total Pay (scheme average)
Set 3
(Tier 3)
3% Employer / 7% Total
100% of Total Pay
For further details see the DWP guidance document: schemes-guidance.pdf  

54. Using an existing contract-based pension scheme
For a pension scheme to be a ‘qualifying scheme’:
it needs to be tax registered
it needs to satisfy the minimum criteria (ie be at or above the legal min employer and total contributions, eg 1% and 2% before 6 April 2018 † )
and, for a contract-based pension, the employer and pension provider must have a signed agreement, where the employer commits to pay at least the legal minimum employer contributions, and
unless the employer agrees to pay at least the legal minimum total contribution (eg 2% before 6 April 2018† ) - there must be a jobholder agreement for each active member (an agreement by the member to pay the difference between the employer contributions and the legal minimum total contribution).
Additional criteria apply for an automatic enrolment pension (which must also be a qualifying scheme).
† Subject to parliamentary approval

55. Summary of deadlines Action/Communication Deadline
Letter to workers who are not already in a qualifying pension scheme at staging
6 weeks after staging
Joining window, enrolment notifications and transitional period notices
6 weeks from the assessment date (eg before midnight of Tuesday 12 May, if assessed Wednesday 1 April).
opt out window
1 month from when both:
the enrolment notification is given, and
active membership is achieved.
Postponement notices
6 weeks from the day after the assessment date (eg before midnight Wednesday 13 May, if assessed on Wednesday 1 April).
Complete declaration of compliance after staging
5 months after staging
Complete declaration of compliance after re-enrolment
2 months after re-enrolment
Normal contribution payments to scheme provider
22nd day of the month following the month of deduction (19th day for non-electronic payments).
New member contribution payments to scheme provider (for all deductions made in first 3 months of membership)
22nd day (for electronic payments) of the first month, following a three month period starting the day active membership is effective (19th day for non-electronic payments) eg enrolments
2 January to 1 February = e-payment deadline is 22 May.

56. What to communicate to workers
Non-eligible jobholders and entitled workers not already in a qualifying pension scheme must be provided with information* telling them about their right to opt in or join a pension scheme.
For eligible jobholders being automatically enrolled (and non-eligible jobholders being enrolled after opting in) they must be provided* with:
information about their enrolment
what it means for them, including the contributions, and
their right to opt out.
Workers subject to a postponement need to be given key information* such as the length of the postponement period and their rights to opt in or join.
* See Useful links for template letters

57. Eddie is not an employee but is he a worker?
Eddie is a self employed graphic designer who regularly works for Acme Workshops Ltd, but works for other clients too. Eddie’s contract with Acme does not permit him to send a replacement. Eddie designs all of Acme’s flyers and magazine ads and also designs and updates their website. Eddie generally works from home, but sometimes he works in Acme’s offices. He uses his own equipment to print the flyers and if something goes wrong with the printing he produces a replacement batch at his own expense. When he is given a project to do, Acme set a deadline, but leave it up to him to plan when, where and how the work will be done. Eddie invoices Acme at the end of each project that he works on. Question - Should Acme Workshops consider Eddie to be their worker?

58. Eddie is not an employee but is he a worker?
Eddie is not an employee but is he a worker?
Eddie is a self employed graphic designer who regularly works for Acme Workshops Ltd, but works for other clients too. Eddie’s contract with Acme does not permit him to send a replacement. Eddie designs all of Acme’s flyers and magazine ads and also designs and updates their website. Eddie generally works from home, but sometimes he works in Acme’s offices. He uses his own equipment to print the flyers and if something goes wrong with the printing he produces a replacement batch at his own expense. When he is given a project to do, Acme set a deadline, but leave it up to him to plan when, where and how the work will be done. Eddie invoices Acme at the end of each project that he works on. Eddie cannot reasonably be considered a worker, as: i) he markets his services to other clients, ii) he uses his own equipment iii) he works unsupervised and iv) he guarantees the quality of his work.

59. Karen is not an employee but is she a worker?
Karen is a self employed IT professional who works full time for Acme Workshops Ltd, supporting their in house payroll system. She works in a team alongside Acme’s own employees and, when she meets external contacts, uses business cards identifying her as a member of Acme’s staff. Although Karen usually works in Acme’s offices, she can work from home if she gets permission in advance. Whether she’s in the office or at home she uses a laptop and software provided by Acme. Karen is paid at the end of each month based on the number of days she has worked. She bears no financial responsibility if she misses a deadline or makes a mistake in her work. - Should Acme Workshops consider Karen to be their worker?

60. Karen is not an employee but is she a worker?
Karen is not an employee but is she a worker?
Karen is a self employed IT professional who works full time for Acme Workshops Ltd, supporting their in house payroll system. She works in a team alongside Acme’s own employees and, when she meets external contacts, uses business cards identifying her as a member of Acme’s staff. Although Karen usually works in Acme’s offices, she can work from home if she gets permission in advance. Whether she’s in the office or at home she uses a laptop and software provided by Acme. Karen is paid at the end of each month based on the number of days she has worked. She bears no financial responsibility if she misses a deadline or makes a mistake in her work. Karen can reasonably be considered a worker, because: i) she is integrated into Acme’s operation ii) she is subject to a degree of control by Acme iii) she uses their equipment and supplies, and iv) she does not guarantee her work.