What is auto-enrolment?

Definition of auto-enrolment

Auto-enrolment, short for ‘automatic enrolment for workplace pensions’, is a UK government initiative that requires all employers to automatically enrol eligible employees into a workplace pension.

Under auto-enrolment the provision of a pension scheme is compulsory for all UK employers with workers aged between 22 and the state pension age, other than directors who don’t have contracts of employment.

A worker is defined as an individual who has a contract of employment or has a contract to perform work or services and is not undertaking the work as part of their own business operations. More information about how different types of worker are defined is available from the Pensions Regulator.

Does your payroll software handle auto-enrolment?

FreeAgent’s payroll includes full auto-enrolment functionality, which automatically flags eligible employees based on their age and earnings and highlights these employees on the Payroll Dashboard.