Employers faced with the burden of implementing an auto-enrolment scheme for their employees will welcome the change in stance by the Department of Work and Pensions (DWP). This now means that employers will have more time to notify their employees about a waiting period and their right to opt in to the company scheme.

 

 

The change from one week after the company staging date to one month will bring a sigh of relief to businesses that are still struggling with the concept of auto-enrolment. Small businesses in particular could have found the original one week deadline challenging and greatly at risk of missing this.

There has been no change in the time period within which employers must notify workers of the right to opt out of a company scheme and this remains as one month beginning from the auto-enrolment date.

• Employers have one month to provide information about the waiting period and the right to opt in.
• The waiting period may be for a period of up to three months and the employee is then auto-enrolled on the last day of the waiting period.
• Then employers have one month from the auto-enrolment date to issue their company scheme enrolment information. This should also include information about the right to opt out of the scheme if the employee so chooses.
• Employees have one month from the date of active membership to make up their mind on whether to stay or leave the scheme. If they do wish to opt out then they must provide the employer with an ‘opt out’ notice.