If your care organisation uses agency staff to fill nursing, care or support roles, it’s important to understand how workplace pension rules apply to them.
Even though the employment agency is legally responsible for managing pension auto-enrolment, knowing the basics will help you choose ethical, compliant partners and protect the wellbeing of the staff delivering care under your name.
Here’s what you need to know.
Why this matters
Many agency care workers are on low pay and zero-hour contracts. They can easily miss out on workplace pension contributions if agencies don’t follow the rules properly.
Some agencies may try to cut costs by delaying enrolment or ignoring their duties altogether. This harms workers and puts your organisation at risk of reputational and operational issues.
Being informed helps you ask the right questions and work only with agencies who treat staff fairly.
What is auto-enrolment?
Auto-enrolment is a legal requirement for UK employers. It means all eligible workers must be automatically added to a workplace pension scheme and receive contributions from their employer.
A worker is eligible if they:
- Are aged between 22 and State Pension age
- Earn over £10,000 per year (pro-rata for part-time or casual roles)
Eligibility must be assessed regularly, especially for workers with variable hours or pay.
When does enrolment need to happen?
An agency must enrol a worker as soon as one of the following applies:
- Their first day of work
- The date they meet the age and earnings criteria
This is known as the automatic enrolment date.
Can enrolment be delayed?
Yes. Agencies can postpone enrolment for up to three months, starting from:
- The worker’s first day
- The date they become eligible
- The date the agency takes on staff for the first time
However, they must inform the worker in writing within six weeks. The notice must explain the postponement and the worker’s right to opt into the pension scheme during that time.
What the enrolment process should include
When enrolment goes ahead, the agency must:
- Assess eligibility using payroll data
- Provide the worker’s details to a pension provider
- Start making contributions
- Send the worker written information about their enrolment and how to opt out
Both the employer and worker contribute to the pension from the enrolment date.
What if the worker wants to opt out?
A worker can opt out within one calendar month of enrolment. They must do this directly through the pension provider.
If they opt out in time, the agency must:
- Stop contributions immediately
- Refund all pension contributions (from both worker and employer)
What happens after someone opts out?
Agencies still have responsibilities. Every three years, they must:
- Reassess and re-enrol eligible workers who opted out, left the scheme, or reduced contributions
- Send written notification to those re-enrolled
Agencies must also submit a re-declaration of compliance to The Pensions Regulator within five months of each three-year anniversary of their original enrolment date.
What you can do as a provider
Even if your organisation isn’t directly responsible for agency workers’ pensions, you can take steps to make sure your partners are following the rules.
Here’s what to check:
- Ask the agency for evidence of their pension provider and enrolment process
- Confirm how they track eligibility and use postponement
- Include pension compliance in supplier agreements or onboarding checks
- Speak to your internal HR or procurement team to make this part of your due diligence process
Final thoughts
Pension auto-enrolment gives care workers a chance to save for the future. Agencies who ignore these duties risk not only penalties but the wellbeing of the staff they place.
As a care provider, working only with compliant, responsible agencies helps protect your team, your values, and the people you care for.
For more guidance, visit The Pensions Regulator at www.thepensionsregulator.gov.