Key Facts
- •Catford Supermarket Ltd (Employer) challenged a fixed penalty notice (FPN) and an escalating penalty notice (EPN) issued by the Pensions Regulator.
- •The FPN (£400) was issued under s 40 of the Pensions Act 2008 for failing to comply with a Compliance Notice.
- •The EPN was issued under s 41 of the Pensions Act 2008 for continued non-compliance, with a daily penalty of £500.
- •The Employer's duties start date was 1 January 2023; the declaration of compliance deadline was 31 May 2023.
- •The Employer failed to submit the declaration, leading to the issuance of the notices.
- •The Employer claimed non-receipt of initial letters and unawareness of the compliance requirement.
- •The Regulator argued proper service and no reasonable excuse for non-compliance.
Legal Principles
Pensions Act 2008 imposes obligations on employers for automatic enrolment, with the Regulator having enforcement powers.
Pensions Act 2008
Employers must provide a Declaration of Compliance within five months of their duties start date.
The Employer’s Duties (Registration and Compliance) Regulations 2010
A person issued with a penalty notice can refer the matter to the Tribunal after a review; the Tribunal decides the appropriate action.
s.44 of the 2008 Act
There is a rebuttable presumption of service when notices are sent to the correct registered address.
Case law (implied)
Lack of awareness of legal obligations is not a reasonable excuse for non-compliance.
Case law (implied)
The Tribunal has no power to reduce prescribed penalties.
Pensions Act 2008 (implied)
Outcomes
The Tribunal dismissed the Employer's references and confirmed both the FPN and EPN.
The notices were properly served; the Employer failed to provide a reasonable excuse for non-compliance; the Tribunal lacks the power to reduce the penalties.