Mon, 21 Jul 2014A total of 25 UK-based recruitment firms have breached pensions auto-enrolment legislation, according to information obtained in a Freedom of Information Act request made by umbrella firm Parasol.

As reported in 'Backlog barriers' in July's Recruiter, The Pensions Regulator recorded the breaches between 1 October 2012 – when the legislation was first introduced – and 30 April this year.

Warning letters were issued in 16 cases, while the remaining nine were dealt with through “informal action”, designed to educate and enable the employers to comply with their duties. No details were given of the specific cases but poor record keeping, a lack of communication and encouraging or coercing workers to opt out of a pension scheme can all constitute as being in breach of the legislation.

Derek Kelly, managing director at Parasol, says: “These figures should act as a stark reminder to the recruitment industry that it is being watched like a hawk over auto-enrolment. Although no fines have been imposed to date, it’s likely that the regulator’s patience may wear thin as time progresses – and that future breaches could result in financial penalties.”