Bus operator which failed to enrol workers faces regulatory penalties
The bus company which failed to enrol its employees into a workplace pension has faced further sanctions.
The case spotlights the importance of staying within the law when it comes to automatic enrolment.
Stotts Tours (Oldham) Ltd was called before the Traffic Commissioner in April 2018, where its director said he had “buried his head in the sand” regarding workplace pensions and failed to discuss it with his co-directors.
It was the first company to be prosecuted for failing to comply with the law on workplace pensions.
Stotts Tours (Oldham) will now have its operating license reduced from 40 to 31 vehicles indefinitely and a formal warning will be recorded on its transport license.
Traffic Commissioner for the North West of England, Simon Evans, said the bus operator had “so clearly failed” in its duties to workers.
“That Stotts became the first company to be prosecuted casts a shadow on the industry,” he said.
“My dismay is compounded because this case goes beyond a simple failure to comply with the law – since staff of companies such as Stotts are the very people whose interests an operator ought to be guarding and through the provision of pension schemes investing in their future.”
It has now been shown that the business has a pension scheme in place, staff had been auto-enrolled and back payments of employer contributions had been made.