Employers

As a result of Automatic Enrolment, millions of people now have a workplace pension. Find out how this affects your business.

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Still unsure if I’m an employer

The following factors are indicators that you are an employer and duties may apply:

  • You have to find work for someone and can tell them what to do and how to do it, even if they are left alone to do the work.
  • You provide the necessary tools for the worker to do the job.
  • You pay someone on a regular basis for the time they work rather than when they have done a particular job.
  • The worker is entitled to benefits, such as sick pay, maternity pay, paternity leave, etc.
  • You have to find someone else to do the work if they can’t do it for some reason, for example they’re off sick. If they have to find someone else to do the work, for example a sub-contractor or a friend, this probably means they are self-employed.
  • It is likely that you also pay them directly through the PAYE system and provide them with wage slips.

(If someone is self-employed or they are hired and paid for through an agency, then you are not their employer and duties do not apply to you.)

Don’t ignore the Workplace Pension

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Here are a couple of examples for illustration purposes only

I employ a personal care assistant

A personal care assistant is someone who provides you with personal care and support in your home, usually because your circumstances mean you are less able to perform these tasks yourself. They might help you with cleaning, cooking, shopping or personal care such as washing and getting dressed. A personal care assistant can either be paid or unpaid. If you have a personal care assistant, you won’t be their employer if they aren’t paid for their work. This type of carer will often be a family member, friend or neighbour.

You may be their employer if you pay them directly for their work, even if you’ve been given money by your local authority (direct payments) to pay them. If they are hired and paid for through an agency, then the agency will be the employer and no duties will apply to you.

Don’t ignore the Workplace Pension

Visit The Pensions Regulator

Help within the home

A domestic worker is someone employed to work in your home and carry out household tasks such as cleaning, cooking, and washing or a nanny who helps with childcare.

If the person does paid work only for you, they are likely to be your employee. However, they could still be your employee even if they work for other people as well as you.

Other domestic workers, will be self-employed and responsible for their own tax and national insurance for example a gardener or an odd job man who runs their own business and usually has other clients.

Don’t ignore the Workplace Pension

Visit The Pensions Regulator