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Pensions reform must reflect recruitment industry needs, says REC

The REC has today responded to the Work and Pensions Committee inquiry into automatic enrolment for workplace pensions, highlighting the particular challenges the latest pensions reforms pose for recruitment agencies placing temporary workers.

For the purposes of the new pensions legislation, recruitment agencies are considered 'employers', despite the very different role they play in the labour market.The REC has reinforced to the Committee that the recruitment industry operates in a unique way to help employers access skilled temporary workers, but that this niche role makes complying with new pensions rules particularly complex, and potentially very burdensome for this important sector.

Commenting, Gillian Econopouly, REC Head of Public Policy said:

"Although the 12-week qualifying period for auto-enrolment the REC helped to secure will go a long way to agencies cope, our submission today seeks to highlight areas that are still of great concern for the recruitment industry, not least the bureaucracy of auto-enrolling and then un-enrolling workers on a regular basis.

"It is essential that policymakers appreciate the administrative burden that auto-enrolment will have for agencies, detracting them from their day-to-day business of helping workers to find job opportunities, and employers to access talent."

She concluded:

"Whilst inputting into the policy-making process, we also continue to build strong working relationships with those who will be delivering and regulating the scheme; including The Pensions Regulator and pensions providers such as National Employment Savings Trust (NEST). Whatever the shape of the final legislation, the REC will provide members with the practical support they need to implement the changes."

The next REC Pensions Workshop will be held in late autumn. The REC will also keep members informed on this inquiry as its findings progress to the House of Commons, and the Government responds to the Committee's recommendations.

To view the REC’s submission, please click on the following link:-

http://www.rec.uk.com/_uploads/documents/rec-response-work-pensions-committee-inquiry.pdf