As from October 2012, employers, including umbrella companies, will need to enrol their staff in a pensions scheme automatically.
Recruitment agencies will also have the same obligation after a temporary worker has been with them on assignment for 12 weeks.
In a bid to clear up some of the confusion surrounding the new rules, the REC and NEST will be hosting a free workshop for members of the REC on May 17th.
The REC’s head of policy, Gillian Econopouly, pointed out that the workshop will provide an excellent opportunity for members to understand auto-enrolment and make sure they can explain to candidates what the reforms mean.
She went on to say that the REC was delighted that the National Employment Savings Trust was participating in the event as a lot of agencies would be choosing the government backed pensions scheme as their provider of choice.
One of the major challenges that agencies face when the new legislation comes into force is that of worker churn. At any one time, about a million temps are working on assignments. However, the nature of the work means some temporary workers are constantly changing assignments, and in some cases, agencies.
The auto-enrolment qualifying period will help agencies cope, but it is thought that many temporary workers will want to opt-out after their agency has auto-enrolled them. The REC believes it will be a very time-consuming process for recruiters to be continually auto-enrolling and un-enrolling their workers. This bureaucracy will detract recruitment consultants from the day to day tasks of helping candidates to find opportunities, the REC has said in response to the Department of Works and Pensions consultation.
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Image: Pension dans la médina de Fès by jfgornet
