The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Hospitality to be hit by new pension legislation

21 April 2008 by

Hospitality employers are likely to be hardest hit by changes to pension legislation being introduced by the Government, experts have warned.

Under the new Pensions Bill, employers will have to contribute 3% of employees' wages into a personal account unless the individual opts out or is given access to an adequate workplace pension scheme.

The personal accounts system, coming into effect in 2012, will require employers to set up and pay into a retirement pot for every worker above the age of 22 who earns more than £5,000 per year.

But firms in the hospitality sector often employ a large number of casual workers, who currently don't have pension arrangements meaning costs could go up "significantly", according to Tony Bacon, senior consultant at actuaries Lane Clark & Peacock.

"If you have a low take-up to your pension scheme, and your competitor has a high take-up then you will be losing a competitive edge," he told Caterer sister title Personnel Today.

The majority of organisations have been surprised by how much the new law will cost them, according to Bacon.

"In the leisure industry, many people just work for three months at a time," he said.

"There are huge administrative issues in setting up pensions, as well as the cost of paying in."

Hospitality workers face shorter lifespan after retirement >>

Unions protest at new TUPE rules >>

A round-up of pensions stories from Personnel Today >>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking