Seasonal Worker's Pension Rights

Understanding your duties as an employer regarding seasonal worker's pension rights is essential to ensure compliance with the law and to support your staff. Whether you're hiring temporary workers for harvest, holiday retail, or other short-term roles, you must be aware of when and how to provide access to a pension scheme. This guide sets out clear, practical information to help you navigate your responsibilities.

Who Do I Need to Put into a Pension Scheme?

Employers are legally required to assess all staff, including seasonal and temporary workers, to determine who must be placed into a pension scheme. This includes any family members employed by the business.

You must enrol staff into a pension scheme if they:

• Are aged between 22 and the State Pension age
• Earn over £192 per week or £833 per month

Once eligible, these staff must be automatically enrolled into a qualifying pension scheme, and you must contribute to it on their behalf.

For tailored guidance, use The Pensions Regulator’s seasonal and temporary staff tool.

When to Enrol and Pay Contributions for Staff with Irregular Hours or Flexible Incomes

Following the start of your duties, you must assess and enrol any staff whose earnings exceed the automatic enrolment threshold of £192 a week or £833 per month (if paid monthly). This includes workers with fluctuating hours or incomes.

Once enrolled, you are required to make regular contributions to their pension scheme. However, if an employee’s earnings fall below £120 per week or £520 per month, you may pause contributions—provided the pension scheme's rules allow it. Always verify the scheme’s terms to ensure compliance.

What Is Available to Help

Postponement

If you expect a worker to be with you for less than three months, you may use postponement to delay the assessment and enrolment process. This means you do not need to put them into a pension scheme immediately.

You must inform each staff member in writing within six weeks of the start of postponement, explaining how it affects them. During the postponement period, you are not required to enrol staff unless they request to opt in.

Use Payroll Software That Supports Automatic Enrolment

Appropriate payroll software is a vital tool for managing seasonal or temporary workers. Software with built-in automatic enrolment functionality can:

• Assess staff at each pay cycle
• Calculate pension contributions
• Support postponement if needed

Ensure any software used is compatible with your chosen pension scheme and meets the specific needs of your business.

Outsource Payroll to Help Assess Staff

If managing pensions for seasonal staff is complex or time-consuming, consider outsourcing your payroll. Professional payroll providers can handle assessment, enrolment, and contribution payments efficiently, ensuring you stay compliant without administrative burden.

Contact The Pensions Regulator

If you believe you might miss a deadline or are uncertain about your responsibilities, contact The Pensions Regulator as soon as possible. They can offer support to help you meet your duties.

Failure to act may result in enforcement action. Make sure you understand and complete all necessary steps to assess and enrol your seasonal staff correctly.

Conclusion

Navigating seasonal worker's pension rights can be complex, particularly when dealing with short-term or irregular employment. For guidance and support with pensions for seasonal workers, get in touch with DhPayroll. Ensuring compliance not only fulfils your legal obligations but also supports the financial future of your employees.