Whistleblowing reports to the Pensions Regulator (TPR) have increased by 29% during the last year amid concerns many small employers are not complying with auto-enrolment (AE).
The watchdog's figures obtained by Clyde & Co showed the number of reports rose from 1,486 in the 2013/14 financial year to 1,968 in 2014/15, and then to 2,545 in 2015/16.
TPR also significantly stepped up its enforcement action over the past year. The number of actions used against employers rose from 1,947 in 2014/15 to 8,812 in of 2015/16, more than a four-fold increase.
Clyde & Co warned failure to comply with the AE regulations could lead to fines of up to £10,000 per day, depending on the size of the business.
Swindon Town FC was fined £23,000 in April after it failed to comply with TPR's AE regulation.
Clyde & Co's head of pensions Mark Howard said: "It is not surprising that we are seeing the number of whistleblowing and enforcement actions increase as the number of employers subject to auto-enrolment grows substantially.
"Swindon Town FC shows the regulator has teeth. Businesses cannot afford to take their eye off the ball or they could get hit with a fairly hefty escalating fine.
Howard warned the final stages of the auto-enrolment process are likely to be the most challenging, particularly for SMEs with little or no HR support.
"Auto-enrolment is not going to disappear and the paperwork can often take far longer than expected. SMEs should not bury their heads in the sand and hope the problem will go away - they need to identify staging dates, check if current pension plans are sufficient or what needs to be done to bring them up to standard and which employees may need to be enrolled," he added.
The technology to improve employees’ wellbeing is already here. But it is now in employers’ hands to make sure it is used to create successful corporate wellness programmes
Legislation formalising trustees’ ESG duties could be overly prescriptive and lay down too much pressure on schemes, the industry has told PP.
Here they are - the winners of the Workplace Savings and Benefits Awards 2020...
Despite an anticipated delay in the Pension Schemes Bill being debated in the House of Commons, Guy Opperman has confirmed he fully expects it to be law by the end of 2020.
Here they are. The finalist lists for the WSB Awards 2020.