Fourth, leading HR and payroll software partner to the hospitality industry, is urging publicans to be fully aware of their pension responsibilities to staff, following recent research that revealed a large number do not have their own pension.
Legal obligations to employees
According to a recent trade survey of licensees, over half of those interviewed said they didn’t have a pension (51%) and, of those, two-thirds said they had no plans to contribute towards one in the future.
Ben Hood, Fourth’s CEO, said: “The results of the survey are worrying. If licensees are unlikely to save for their own future, then they could be less aware of their legal obligations to provide a pension for their employees.”
Workplace pensions schemes
Over the next four years, every employer in the UK – no matter how big or small – must assess their entire workforce and offer workers a workplace pension scheme.
The government-led campaign, known as auto-enrolment or workplace pension schemes, means that larger businesses are already participating and businesses with fewer than 50 employees must start the scheme next summer. The smallest enterprises (four employers or fewer) must introduce such pensions by June 2017.
Fourth is already working closely with pub companies to understand their legal auto-enrolment obligations, including Fuller’s, Orchid, Stonegate, Thwaites, and Whiting & Hammond, as well as other hospitality businesses including Jamie’s Italian, Pizza Express, Tragus, Travelodge, and Yo Sushi.
Risk of prosecution and fines
Hood continues: “Employees with fluctuating hours, as prevalent in the pub industry, will all be included, so continually monitoring employees’ age, wages, needs and requirements has never been more important. It is crucial that licensees and other hospitality businesses ensure they are aware of their legal duties, or risk facing prosecution and fines of up to £10,000 a day, per employee.
“Technology has a clear, key role to play, with smart payroll systems available which streamline and automate the checks and extensive calculations required each pay period, avoiding the excruciating and time-consuming headache of manual processing.”
Pubs due to start the process
Automatic pension enrolment began in October 2012, and requires all businesses to assess their workforce each pay period and enrol certain employees (eligible UK job holders aged between 22 and state pension age and earning more than £9,440) into a workplace pension scheme, unless the worker is already in a qualifying scheme.
A slice of an employee’s pay packet will be automatically diverted to a savings pot for their pension. Employers are obliged to pay in as well, with the government adding an extra percentage through tax relief. Small and micro employers (1-49 employees), the category that most pubs will fall under, are due to start the process between July 2015 and June 2017.
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About Fourth
Fourth is the world’s leading provider of cloud-based cost control solutions to the hospitality industry – solutions that give customers complete control of their spending in all the key business areas including labour, inventory, purchase-to-pay, HR and payroll.
It works with over 1,000 hospitality groups including Carluccio’s, Center Parcs, D&D, Fuller’s, Gondola, Hyatt, Jamie’s Italian, Le Meridien, Merlin Entertainment, Soho House, Spirit Pub Company, SSP, Stonegate, Tragus, Travelodge and Wagamama