Some workers who would normally meet the Auto-Enrolment (AE) criteria may be exempt or excluded from AE if they are Directors of a company.
A director is only a worker for AE purposes if:
- they have a contract of employment with the organisation
- at least one other person (who can be another director) also has a contract of employment with the organisation
Therefore, if a director has a contract of employment and is not the only person working for the company under an employment contract, they have AE duties.
Depending on their age and earnings, the Directors may qualify for AE. However, even if the Director qualifies, the company keeps the right to choose whether to enrol the Director into the scheme or not. The director would retain the right to opt into the scheme.
See more details here.
If you have a worker that shouldn't be enrolled on a scheme due to being a Director, please enter that into Husky's system so that no contributions are made.