The prosecution of a national recruitment agency, its directors and senior staff has led to the UK’s largest fine and first custodial sentences for a case brought by The Pensions Regulator (TPR).
Derby-based Workchain, its directors and senior staff have all been ordered to pay more than £280,000 (US$365,070) for illegally opting temporary workers out of the company pension scheme. The owners and directors of the company, which was formerly known as Smart Recruitment, encouraged five senior staff to opt workers out of the scheme in order to avoid making pension contributions on their behalf.
The senior staff members phoned the National Employment Savings Trust (NEST), posing as the workers in order to obtain their account ID numbers. They then logged onto NEST’s online portal and opted them out of the pension scheme.
Judge Nirmal Shant QC told the defendants that their “co-ordinated effort” had been an “attempt to steal a march” on their competitors, which was an offence under the Computer Misuse Act 1990.
Darren Ryder, TPR’s director of automatic enrolment, indicated that the level of punishment handed down by the court showed that it viewed the offences as “very serious”.
“Automatic enrolment has led to almost 10 million more people saving towards their retirement,” he said. “Its success cannot be allowed to be undermined by such incredibly rare cases of unacceptable behaviour as that of Workchain."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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The prosecution of a national recruitment agency, its directors and senior staff has led to the UK’s largest fine and first custodial sentences for a case brought by The Pensions Regulator (TPR).
Derby-based Workchain, its directors and senior staff have all been ordered to pay more than £280,000 (US$365,070) for illegally opting temporary workers out of the company pension scheme. The owners and directors of the company, which was formerly known as Smart Recruitment, encouraged five senior staff to opt workers out of the scheme in order to avoid making pension contributions on their behalf.
The senior staff members phoned the National Employment Savings Trust (NEST), posing as the workers in order to obtain their account ID numbers. They then logged onto NEST’s online portal and opted them out of the pension scheme.
Judge Nirmal Shant QC told the defendants that their “co-ordinated effort” had been an “attempt to steal a march” on their competitors, which was an offence under the Computer Misuse Act 1990.
Darren Ryder, TPR’s director of automatic enrolment, indicated that the level of punishment handed down by the court showed that it viewed the offences as “very serious”.
“Automatic enrolment has led to almost 10 million more people saving towards their retirement,” he said. “Its success cannot be allowed to be undermined by such incredibly rare cases of unacceptable behaviour as that of Workchain."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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