Postponement and how it’s used transcript
Postponement is where the employer can choose to delay the assessment process at their duties start date, for new age starters or for those who meet the eligible job holder criteria.
Postponement can last from one day up to three months. At the end of postponement, the member of staff has to be assessed.
If the person meets the eligible job holder criteria at the end of postponement they must be enrolled.
If the person does not meet the eligible job holder criteria at the end of the current postponement period, then the next time they do meet the eligible job holder criteria the employer can apply postponement again.
But remember, if at the end of postponement, the person meets the eligible drop holder criteria they must be enrolled and cannot be postponed again.
A person will meet the eligible drop holder criteria if they are aged between 22 and understate pension age and their qualifying earnings are above the earnings trigger which for monthly paid staff is £833 and for weekly is £192.
It is important that you establish with your client the postponement rules they wish to apply and operate them accordingly.
For more information on postponement please see the guidance on our website.