Delegation to third party was not reasonable excuse for failure to pay pension contributions under auto-enrolment (Café Piano v The Pensions Regulator)
- Delegation to third party was not reasonable excuse for failure to pay pension contributions under auto-enrolment (Café Piano v The Pensions Regulator)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Pensions analysis: The First-tier Tribunal (FTT) (General Regulatory Chamber) has ruled that an employer did not have reasonable excuse for failing to comply with an Unpaid Contributions Notice (UCN) in respect of pension contributions that should have been paid to employee A. The Pensions Regulator (the Regulator) had sent the appellant a UCN which required it to pay the missing pension contributions as well as to provide evidence of compliance. The appellant failed to complete the steps set out in the UCN by the deadline specified in the notice and the Regulator therefore proceeded to issue a fixed penalty notice. The key issue the Tribunal needed to determine was whether the appellant had a reasonable excuse for failing to comply with the UCN. The appellant relied on three key arguments, including that employee A was unsure whether to commit to employment. The Tribunal ruled that employee A should have received pension contributions under automatic enrolment from the start of his employment. Written by Rowena Wisniewska Sethi.
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