Key Facts
- •Café Piano Radcliffe on Trent Ltd (Appellant) appealed a £400 fixed penalty notice from The Pensions Regulator (Respondent) for non-compliance with an unpaid contributions notice (UCN).
- •The UCN, issued June 14, 2022, demanded payment of unpaid contributions for one employee (Employee A) due between October 1, 2021, and January 31, 2022.
- •The Appellant failed to meet the UCN's July 25, 2022 deadline, leading to the August 11, 2022, fixed penalty notice.
- •The Appellant claimed reasonable excuse due to Employee A's initial reluctance to participate in the pension scheme, reliance on incompetent accountants, and difficult financial circumstances.
- •The Regulator argued that automatic enrolment supersedes Employee A's initial reluctance and that employer compliance responsibility cannot be delegated away.
- •The Appellant's belated submission of payslips to an incorrect email address did not meet the UCN's evidence requirements.
Legal Principles
Employers have duties under the Pensions Act 2008 regarding automatic enrolment and contributions.
Pensions Act 2008
The Regulator can issue UCNs for unpaid contributions and fixed penalty notices for non-compliance.
Pensions Act 2008
Appeals against fixed penalty notices can be made to the Tribunal after a review request to the Regulator.
Pensions Act 2008
The Tribunal determines the appropriate action, considering 'reasonable excuse' for non-compliance.
Pensions Act 2008, Section 103(3); In the Matter of the Bonas Group Pension Scheme [2011] UKUT B 33 (TCC); Pensions Regulator v Strathmore Medical Practice [2018] UKUT 104 (AAC)
Automatic enrolment is mandatory; postponement or opt-out requires specific procedures.
Pensions Act 2008, sections 4 & 8; Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, sections 9 & 10
Employer responsibility for compliance cannot be avoided by delegating duties to a third party.
Case law precedent (implied)
Outcomes
Appeal dismissed; fixed penalty notice upheld.
The Appellant failed to demonstrate a reasonable excuse for non-compliance with the UCN. The Tribunal found that the employer's responsibility for compliance cannot be shifted to a third party, even if that third party (accountants) failed to act. Employee A's initial reluctance to contribute did not excuse the employer's failure to follow the proper procedures for postponement or opt-out.