Key Facts
- •Allen Shaw (Employer) challenged a Fixed Penalty Notice (FPN) of £400 issued by the Pensions Regulator for non-compliance with a Compliance Notice.
- •The FPN was issued under s 40 of the Pensions Act 2008 for failure to provide a Declaration of Compliance by the deadline.
- •Employer's duties start date was 3 April 2023, with deadlines repeatedly extended.
- •Employer submitted the Declaration of Compliance on 24 November 2023, after the FPN was issued.
- •Employer claimed non-receipt of prior correspondence, lack of awareness of obligations, and financial hardship.
- •Regulator argued that the grounds did not constitute a reasonable excuse for non-compliance.
Legal Principles
Pensions Act 2008 imposes obligations on employers regarding automatic enrolment; the Regulator can issue Compliance Notices and FPNs for non-compliance.
Pensions Act 2008, s 40 and s 44
Employers must provide a Declaration of Compliance within five months of their duties start date; failure to do so may result in a Compliance Notice and subsequently an FPN.
The Employer’s Duties (Registration and Compliance) Regulations 2010
A person issued with an FPN can refer the matter to the Tribunal after applying for a review with the Regulator; the Tribunal decides on the appropriate action.
Pensions Act 2008, s 44
The Tribunal considers whether there was a reasonable excuse for non-compliance when determining the appropriateness of the FPN.
Tribunal Procedure (First-tier Tribunal) (General Regulatory Chamber) Rules 2009
The statutory presumptions of service apply; the burden is on the appellant to rebut these presumptions.
Interpretation Act 1978, s 7; Pensions Act 2004, s 303
Outcomes
The reference is dismissed; the FPN is confirmed.
The Employer failed to provide a reasonable excuse for non-compliance with the Compliance Notice; the Tribunal found that the Compliance Notice was likely received, and the non-compliance was not justified by the Employer's claims.