Taking on seasonal or temporary staff to cover busy periods can be a smart move for your business. But even if they’re only working with you for a short time, you might still have auto-enrolment duties when it comes to pensions.
Let’s break down what you need to do — and how to avoid getting caught out by the rules.
Auto-Enrolment: The Basics
If you employ anyone who meets the following criteria, you must automatically enrol them into a workplace pension scheme:
- Aged between 22 and State Pension age
- Earning more than £192 per week (or £833 per month)
These rules apply no matter how long someone works for you — even if it’s just a few weeks.
Postponement: A Handy Tool for Temporary Workers
If you hire staff on a short-term basis, their hours and pay might fluctuate — and they might not stick around long enough to make setting up pension contributions worthwhile.
That’s where postponement comes in.
It lets you delay assessing and enrolling eligible staff for up to three months from:
- The date they start work, or
- The date they meet the eligibility criteria (whichever is later)
During this time, you don’t need to enrol them — unless they ask you to.
But there’s a catch…
You must write to them within six weeks of the start of the postponement period, letting them know you’re using it.
What If They Work for Less Than Three Months?
If your new starter is only going to be around for a few weeks, you’ve got two options:
- Assess and enrol them each time they’re paid
(If they meet the age and earnings thresholds) - Use postponement to delay assessment for up to three months
If they leave before the three-month postponement ends, you don’t need to enrol them at all — but remember, they still have the right to opt in voluntarily during that time.
What If They Stay for More Than Three Months?
This is where postponement helps delay your responsibilities — but doesn’t remove them.
You can still use postponement for the first three months, but:
- Once that period ends, you must assess them
- If they meet the eligibility criteria at that point, you’ll need to enrol them straight away
And if they’re still not eligible? You can postpone again — for another three months — to delay assessing them further.
Just remember: eligible workers can always request to be enrolled early if they wish.
Keep an Eye on the Clock (and the Rules)
Auto-enrolment duties don’t disappear just because someone is temporary or seasonal. But postponement gives you breathing room to manage short-term staff without triggering unnecessary admin.
Just make sure:
- You use postponement within six weeks of the employee becoming eligible
- You send the correct communication to the worker
- You’re ready to assess and enrol if they stick around beyond three months
Need Help Managing Auto-Enrolment for Temporary Staff?
Whether you’re hiring a Christmas temp or a short-term contractor, we’ll help you stay compliant with your pension duties — without creating a paperwork headache.
Not sure when to enrol or postpone? We’ve got your back.
Get in touch with Jon or the team today and let’s make sure your payroll and pension setup is sorted.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
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