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. For more information about identifying whether or not an individual is a worker check out this guide 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.

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