The Pensions Regulator (TPR) has warned that employers that are struggling to meet their auto-enrolment duties should alert the organisation sooner rather than later.

TPR's warning was set out in its first auto-enrolment section 89 report, which highlights key lessons to help employers avoid non-compliance.

The report outlines the problems that were experienced by Dunelm Soft Furnishing Ltd and the action by the regulator to help Dunelm get back on track towards compliance.

Dunelm's auto-enrolment staging date was in April 2013 and the company was due to complete registration by 31 July 2013, however this was not done until 15th August 2013, which prompted TPR to take action.

A TPR inspection revealed that the company failed to enrol members of the four-weekly payroll on time and certain members of the monthly payroll on time due to problems with its payroll system and staffing issues, resulting in the company not paying across a significant level of contributions to the pension provider.

Following the inspection, Dunelm paid approximately £35,000 in contributions for the four-weekly payroll and around £108,000 for the monthly payroll.

TPR said that the company was "open, forthcoming and fully co-operative with the regulator in their endeavour to meet their employer duties" and Dunelm is now compliant with its auto-enrolment duties.

As a result of this inspection, TPR said that an employer who is experiencing challenges in meeting their auto-enrolment duties should contact the organisation to discuss the situation; sound corporate governance is "essential" to ensure that registration is completed accurately and on time; payroll systems should be tested well in advance of the staging date; and a smooth handover and consistency should be maintained in the event of key staff changes.

TPR executive director for auto-enrolment Charles Counsell said: "TPR focuses on a pro-compliance culture and employers and workers understand the 'we're all in' message - 99.9% of employers who have completed registration have done so without the need for us to use our powers.

"This section 89 report shows however, that we will use the powers we have been given to take enforcement action where it is appropriate to do so.
"I am pleased to see that the employer in this case is now compliant with their duties. I would urge all employers to take heed from the lessons learned here so that they avoid the same pitfalls."

As of 23 April 2014, TPR has issued 15 compliance notices.

First published 24.04.2014

monique_simpson@wilmington.co.uk