Publicans face penalties over pensions
Publicans could face a £50,000 fine if they fail to set up a stakeholder pension scheme for their staff - and initial research suggests that only a handful of licensees are already complying.
The new legislation, which comes into full effect from the beginning of October, requires all licensees with five or more staff to set up a pension scheme as part of a Government plan to encourage more people to save for their retirement.
Although licensees do not have to make any contributions to the scheme, they are required to arrange for contributions to be deducted from staff wages and paid into an approved scheme or to obtain written statements from any members of staff who choose to opt out of the scheme.
But trade leaders are concerned that only a small number of licensees have acted to comply with the new requirements so far and fear many will run out of time.
Failure to comply by the October deadline could leave licensees open to fines of up to £50,000 and possible legal action by staff.
There is concern that these regulations will be another burden for already overworked licensees.
John Bristow, of the Guild of Master Victuallers, said that he was worried that it could put some pubs out of business.
"A lot of pubs just won't be able to pay the extra costs," Mr Bristow said.
A spokesperson for the Norfolk & Norwich Licensed Victuallers Association (LVA) also envisaged problems and said many licensees would be confused by the new regulations.
"This new legislation puts additional pressure on our members," a spokesperson said.
"They are all busy people running one or more pubs and it is not easy for them to know how to set up a pension scheme for their staff."
The LVA has teamed up with local solicitors Howes Percival to set up a pension package that members can sign their staff up to. The scheme was officially launched this month and it is hoped this will enable members to meet the new requirements well ahead of the October deadline.
Other trade associations, including the Federation of Licensed Victuallers Associations (FLVA), have sent out letters and information packs warning their members to act now so they have time to set up the scheme before the deadline.
On a more positive note, Tony Payne, chief executive of the FLVA, said the schemes could benefit licensees by attracting and keeping good quality staff in an industry which has a poor record on staff turnover.
Further information regarding stakeholder pensions is supplied by thePublican.com's legal expert David Clifton.
