Farm businesses warned on seasonal worker pension duties

The Pensions Regulator has warned farm businesses that they may face a fine if they fail to comply with legal pension duties for seasonal workers.

Businesses should ensure that any temporary staff are set up to automatically enrol in pension schemes where legally required.

Guidance states that staff aged over 22 that earn more than £192 a week, or £833 a month, must be put into a pension scheme which employers must pay into.

See also: Migration advisers back extension to Seasonal Worker Scheme

An online campaign has been launched by the regulator featuring farm workers and fruit pickers to encourage businesses to check their legal duties.

Sarah Howitt Jones, interim joint director of automatic enrolment at The Pensions Regulator, said: “We want to ensure that every worker who is eligible under AE rules is enrolled into a workplace pension scheme and gets the pension they are due.

 “Even if your additional staff work for you for a few days or weeks, you must assess whether they are eligible to be enrolled into a pension scheme each time you pay them. And if they are, you must put them into a qualifying scheme and pay contributions.”

Ms Howitt Jones added: “We know the majority of employers in the farming industry are doing the right thing for their staff, but for those that don’t, we may take enforcement action to protect savers.”

Employers can delay putting staff into a pension scheme for up to three months through postponement, which pauses the duty to assess staff during this period.

Ms Howitt Jones added: “Temporary workers may have variable hours and pay, your assessment of who to put into a pension scheme may take more time and effort.”

Further guidance for businesses with staff working variable hours and on changing pay rates can be found on the regulators website.