A radical overhaul of UK pensions begins today. Over the next six years recruitment agencies will be required to auto-enrol both their own employees (if they aren’t already in a company scheme) and eligible agency workers.

The date for implementing the legislation is based on the combined numbers of employees and agency workers, with the largest agencies required to take action first. For example, both Randstad and Meridian Business Support have a staging date of March 2013.

Under the legislation, a recruiter will be able to delay automatic enrolment for three months, but only if it follows the correct procedures.

Workers will be able to opt out, however there are strict anti-avoidance provisions to prevent staffing companies encouraging workers to opt out.

Jeanette Barrowcliffe, finance director at Meridian Business Support, tells Recruiter: “The legislation is complex. It takes up as much management time as AWR trying to understand the legislation.”