It is possible to postpone pension enrolment for the first 3 months of a worker’s employment. To do so, the employer must write to the employee stating that they intend to postpone pension enrolment. This letter must be sent to the employee within the first 6 weeks of their employment. Where an employee is on a fixed-term contract lasting less than 3 months, it may be possible to avoid pension enrolment altogether using this method.
Upon receiving the letter, the employee can either accept the postponement, or they are entitled to request immediate enrolment into the pension scheme. If an employee does request to be enrolled, then the employer must do so as soon as possible.
At the end of the postponement period, the employer should assess whether their employee meets the age and earnings criteria to be put into a pension scheme, as set out above. If they do, the employee must be immediately put into a pension scheme, and pension contributions must be paid. It is not possible to postpone the pension contributions of a new employee beyond the initial 3 month period. For more information on pension postponement, please refer to the government guidelines.