New government pension rules will mean that all employers need to register nannies, gardeners and carers in order to avoid fines.
By 2018, it will be a requirement that employees are registered by their employers, regardless of whether they are entitled to a workplace pension. This includes parents who hire a nanny, and elderly people who pay for a carer, even if they earn under the £10,000-a-year salary needed to qualify for a workplace pension.
Until recently, it was assumed that those who are paid less, for part-time work for instance, would be excluded. However, any employers who fail to register will now be considered to have unfulfilled their duties, and will risk being penalised by the regulators, first with an official warning. Following this, fines of £400 could be issued to smaller employers, with additional charges of £50 for each day their employees are not registered.
Employers urged to act on new rules
In order to create awareness, the government has created an advertising campaign, which is expected to air for the first time on Wednesday during the Coronation Street commercial break. There will also be giant billboards in London’s Piccadilly Circus, and adverts on buses, which hope to draw attention to the new laws.
The campaign focuses on a monster named ‘workie’, who gets ignored by employers, which pensions minister Baroness Ros Altmann personally helped design. The message is hoped to encourage small employers to learn about the changes, and will provide information about the ways employees can be registered.
Baroness Altmann told the Telegraph: “There are a lot of people who will need to register that they are employers but then also register to say they don’t have anyone to auto-enrol.”
A new website is set to be launched by the Department for Work and Pensions on Wednesday, which will make the registration process easier for smaller employers with members of private household staff.
Image Credit: Simon Cunningham (flickr.com)