New UK automatic pension enrolment regime: implications for international assignments into the GCC
Type
E-journal
Date
26 Jul 2013
Jurisdiction
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, UK
Taxonomy
Rights & Duties of Employees & Employers, Personal & Occupational Pensions
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
Starting from October 2012, all employers in the UK are being required by law to make arrangements for their workers to be automatically enrolled into a pension scheme. For the first time, employers will be required to make contributions towards their workers' pension savings. The workers covered will in many cases include workers who have been sent by their UK employers on secondments or other placements outside the UK to GCC countries.
Within the GCC context, this requirement raises issues with respect to end of service gratuity which is a statutory benefit in the six GCC member states. It is a benefit designed to be in lieu of pension for foreign employees and in certain circumstances may be replaced by a pension or savings scheme (usually expected to be locally based).
The automatic enrolment legislation