From 1 July 2012 no employer can take any action, which is likely to encourage an employee to give up right to automatic enrolment. Obvious examples are offering someone a pay rise on the basis that they opt-out of automatic enrolment or withholding a promotion.
Employers have been urged to look to their recruitment polices and job adverts. In future, it will be illegal to offer a job on the basis that no pension is attached. Flexible benefits arrangements will also need careful scrutiny - to ensure that an offer to swop pension benefits for cash (or another alternative) can't be seen as an inducement to opt-out.
Zoe Lynch, partner, Sacker & Partners, said: "It's not, as many seem to worryingly believe, Somebody Else's Problem.?The biggest likely trip up is the new law on inducements which comes into force this Sunday on 1 July."
The fast approaching 1 October deadline isn't as soft as it's been widely reported, either. The Pensions Regulator - who has been given the task of enforcement - has announced fines of £10,000 a day for non-compliance.
Lynch added: "All firms will certainly be realising over the coming weeks that auto-enrolment is suddenly everyone's problem."
