All employers within the Automotive sector are or will become obliged to enrol all eligible workers into a work-based pension scheme. To date all larger car manufacturers and dealerships have automatically enrolled these workers and each organisation has encountered various issues that they have had to overcome. The positive news is that with an element of planning and determination these hurdles have been overcome and for many employees in the Automotive sector pensions saving is now an accepted practice.

The key lessons for organisations in the Automotive sector who will auto enrol from October 2014, taken from those employers who have already gone through the process are:

  • to give yourself plenty of time to prepare for auto enrolment – a minimum of six months is recommended
  • not to assume that your existing pension scheme or your pension provider will meet your requirements for the purpose of the auto enrolment legislation
  • that you do not have to enrol all employees, however, checking those who do not qualify may prove difficult
  • decide early if you need assistance and seek professional help if you do
  • take care in considering whether individuals providing services such as valeting or car delivery rather than employees must be included as workers
  • ensure that your payroll system is compatible with the demands of automatic enrolment
  • communicate the changes to your employees sooner than later.