Temporary Workers and Pension Auto-Enrolments: What Employers Need to Know
- Brian Pusser
- Aug 16
- 2 min read
As warmer months arrive, many businesses gear up to employ seasonal or temporary staff. While this meets current demand, it’s vital not to overlook your workplace pension obligations—even for short-term hires.
Temporary Workers Have the Same Rights as Permanent Staff
Under UK law, employees—including temporary workers—must be assessed for pension auto-enrolment each pay cycle. If they meet age and earnings criteria, they’re entitled to join the workplace pension, just like any permanent employee
Failing to assess eligible staff can lead to enforcement by The Pensions Regulator or HMRC, starting with a warning that can escalate to penalties: an initial fine of £400, followed by daily charges ranging from £50 to £10,000
How the Postponement Option Can Help
The UK pension system does allow a breathing space: you can postpone assessing and enrolling employees—including temporary or seasonal workers—for up to three months from their eligibility start date (The Pensions Regulator).
To apply this:
You must notify each affected employee, in writing, within six weeks from the postponement start (The Pensions Regulator).
During postponement, employees can opt in to the scheme—if they do, you must enrol them immediately.
At the end of the postponement period, reassess them: if still eligible, you must enrol and contribute without further delay (The Pensions Regulator).
This tool is especially useful when you know a worker is only needed for a short span, helping you stay compliant without unnecessary administrative burden.
Who Needs to Be Enrolled?
Not every temporary worker qualifies—eligibility hinges on age and earnings:
Workers aged between 22 and State Pension age, earning above £192/week or £833/month, must be enrolled (The Pensions Regulator).
If workers are under 22 but earn over £10,000/year, they can request to be enrolled; you're then legally required to enrol them even though they’re not auto-eligible
Leveraging Payroll Software to Stay Compliant
Modern payroll software often includes features for automatic enrolment and postponement. It can assess eligibility every pay run, generate the required letters, and monitor opt-outs or enrolments—simplifying your compliance (The Pensions Regulator).
Background: Why These Rules Exist
The obligation stems from the Pensions Act 2008, which introduced automatic enrolment to boost retirement savings and reduce future reliance on state pensions
Postponement was a practical enhancement, enabling employers to manage short-term staffing without overcomplicating payroll, while still preserving employee rights.
Summary Table: Key Obligations
Scenario | Employer’s Duty |
Temporary worker employed | Assess each pay period for pension eligibility. Enrol if eligible. |
Worker works under 3 months | Optional: Postpone assessment with proper written notice. |
Workers request enrolment during postponement | Must enrol immediately. |
End of postponement & still eligible | Must enrol and contribute from that date. |
Key Takeaways for Employers
Never skip assessments, even for a brief hire.
Use postponement smartly—only if you’re certain the worker’s duration ≤3 months.
Always communicate in writing, and keep records.
Use reliable payroll software, especially during seasonal peaks.
Penalties are real—don’t ignore your pension duties, even temporarily.
Need help implementing this or setting up a compliant system? Reach out, and we’ll ensure your off-season hiring remains smooth and compliant.
