Over the next few years various changes will be made regarding pensions that employers need to be aware of.  The most significant is the requirement for employers to automatically enrol their staff into a workplace pension scheme.

The duty of employers to automatically enrol their staff into a workplace pension scheme is expected to come into force in stages. The stages are expected to begin on 1 October 2012 starting with the largest employers.

Employers with 3000 or more workers in their PAYE scheme are likely to have staging dates between 1 October 2012 and 1 July 2013.

The Government has announced that employers with fewer than 50 workers in their largest PAYE scheme will have the regime imposed upon them between August 2012 and February 2016.

Key dates for employers in 2012

The introduction of and amendments to employment legislation in 2012 will undoubtedly affect employers. It is important an employer is up to date with their employee rights so as to fulfil their duty as an employer correctly and in turn avoid legal action.

Maitland Walker has provided a brief timetable of key dates and information all employers need to be aware of.

1st February 2012: The maximum compensatory award for unfair dismissal cases will increase from £68,400 to £72,300 therefore increasing an employer’s liability. In addition, the upper cap on the basic award and redundancy payment will increase from £400 to £430 per week.

8th March 2012: Parental leave will increase from 3 months to 4 months. This remains unpaid.

1st April 2012: Statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week.

6th April 2012: The personal nil rate band for income tax will increase by £630 to £8,105 per annum. The threshold for higher rate tax payers will be reduced to £34,371.

6th April 2012: Statutory Sick Pay will increase from £81.60 to £85.85 per week.

6th April 2012: The lower limit for National Insurance Contributions increases from £102 to £107 per week.

6th April 2012: The maximum amount of costs that a Tribunal may award will increase from £10,000 to £20,000.  

6th April 2012: The required length of service to qualify for a claim of Unfair Dismissal will increase from 12 months to 24 months. The new 24 month period will only apply to employees whose employment begins on or after this date. 

1st October 2012: Employers will be required (dependent on the number of employees) to automatically enroll all eligible employees into a workplace pension or the National Employment Savings Trust (NEST) pension scheme.