Since 2012 new pension rules have been phased in to require employers to provide automatic enrolment into a workplace pension for most of their employees. The rules are designed to encourage people to save more towards their retirement. Businesses must enrol eligible employees into a suitable workplace pension scheme as soon as they start work.
However, employees can choose to withdraw from the scheme if they want to. The rules also require at least a certain percentage of each participating employee's wages to be paid into the scheme, with employers having to contribute a certain proportion of this amount and participating employees having to make up the balance.
The overall minimum contribution amount and the percentage which employers must contribute will gradually increase up to 2019. From April 2019 at least 8% of each participating employee's 'qualifying earnings' must be paid into the scheme, with employers contributing at least 3%.
Every three years employers must re-enrol certain employees - for example eligible employees who left an employer's automatic enrolment pension scheme more than 12 months before the employer's re-enrolment date.
You can find out much more about auto-enrolment pension rules for employers on the Pensions Regulator website. The website includes an interactive calculator tool for employers to help them work out their minimum pension contributions for employees.
Information for employers about auto-enrolment pensions is also available on the Gov.uk website.