There are 3 types of postponement. These can be used separately or combined. They can’t be used back to back.
We only need to know about postponement choices if The People’s Pension is being used to assess the workforce.
Staging postponement – an employer can postpone assessing their workforce from their duties start date for up to 3 months.
New starter postponement – an employer can postpone assessing their new starters for up to 3 months.
Eligibility postponement – an employer can postpone enrolling someone who has become eligible for the first time, to cope with spikes in earnings. This makes allowances for those individuals who may only become an eligible employee every now and again and saves the administrative duties associated with frequently changing someone’s status.
For example, overtime earned one month could push an employee into the auto-enrolment threshold.
If eligibility postponement isn’t in place, the employee will automatically become eligible and will remain in this status.
If postponement is used, the employee doesn’t need to be assessed until the end of the postponement period. At which point if they’re no longer eligible, they’ll remain at their current assessed state.