1. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Stephen Rowntree Industry liaison manager April 2015 Automatic enrolment Employer duties and directors The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

2. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. A person is likely to be considered a ‘worker’ and subject to the automatic enrolment legislation if they are: i.aged 16 to 74 (inclusive) and work or ordinarily work in the UK and ii. either work under a contract of employment (an employee) or are a personal services worker, meaning they: a)have a contract to perform work or services personally* and b)are not undertaking the work as part of their own business. * ie they cannot send a substitute or sub-contract the work, unless they are unable to perform the work themselves (eg due to sickness)    Who is subject to this legislation?

3. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is a ‘personal services worker’? An individual (who is not a director) with a contract to perform work or services personally, may be a worker. The employer needs to judge whether or not they are undertaking the work as part of the individual’s own business. So, 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)? 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 therefore 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.

4. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Contracts Look carefully at any contractual arrangements and bear in mind that: terms of engagement/employment can be implied, rather than explicitly stated a contract does not have to be in writing, it can be a verbal contract some staff are considered workers even when not carrying out work, if there is an ‘enduring employment relationship’ (eg if they are paid a retainer), and if a worker has more than one contract with an employer, the employer should make a reasonable judgement as to whether to aggregate or separately assess them.

5. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 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   

6. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Type of work contract between individual and this company Employer duties apply to this individual? Sole director/employee 'A' (who is a director of this company with an employment contract) X Additional director 'B' (on a personal services contract ie is not on an employment contract) X Additional non-employee worker 'C' (a personal services worker who is not a director) √ Additional employee 'D' (whether a director or not) ‘A‘, ‘C' and ‘D‘ √ Examples

7. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What you should do now If your clients do receive a letter which includes their staging date and you believe that automatic enrolment duties don’t apply to them, you or the employer need to let us know, please do this by emailing  customersupport@autoenrol.tpr.gov.uk customersupport@autoenrol.tpr.gov.uk Once this has been received our customer support team will update our records to reflect that your client is not an employer and we will stop any further communications to them. Visit this page for more information where you can find a pre-populated email  www.tpr.gov.uk/employers/what-if-i-dont-have-any-staff.aspx www.tpr.gov.uk/employers/what-if-i-dont-have-any-staff.aspx If your clients circumstances change so that automatic enrolment duties do apply to them, they’ll need to inform us of this as soon as possible. This would happen if they took on a member of staff other than a director, or if at least two directors started working for them under contracts of employment. Please note that, if we discover that you or your client have provided false or misleading information in order to evade automatic enrolment duties, we will take this into account when deciding whether to take action against you in future.

8. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links Staging date tool: www.tpr.gov.uk/employers/tools/staging-date.aspx www.tpr.gov.uk/employers/tools/staging-date.aspx Planning tool: www.tpr.gov.uk/planner www.tpr.gov.uk/planner The essential guide to automatic enrolment: www.tpr.gov.uk/employers/e-brochure/index.html www.tpr.gov.uk/employers/e-brochure/index.html Our detailed guides for employers and pension professionals: www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx Information about declaration of compliance: www.tpr.gov.uk/declaration www.tpr.gov.uk/declaration Letter templates for employers: www.tpr.gov.uk/employers/letter-templates-for-employers.aspx www.tpr.gov.uk/employers/letter-templates-for-employers.aspx

9. DM 3053005 v2A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We are here to help! Contact us at: www.tpr.gov.uk/contact-us.aspx www.tpr.gov.uk/contact-us.aspx Subscribe to our news by email: https://forms.thepensionsregulator.gov.uk/subscribe.aspx https://forms.thepensionsregulator.gov.uk/subscribe.aspx Request a guest speaker: https://secure.tpr.gov.uk/speaker-request.aspx https://secure.tpr.gov.uk/speaker-request.aspx Connect with us on LinkedIn: www.linkedin.com/groups?gid=2675456 www.linkedin.com/groups?gid=2675456 Follow us on Twitter: https://twitter.com/TPRgovuk https://twitter.com/TPRgovuk Thank you The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.