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Recruitment Agency Found Guilty of Illegally Opting Workers Out of Pension Scheme

Posted 13th November 2018 in News For Workers

Derby-based recruitment agency Workchain’s directors and senior staff have been ordered to pay over £280k after being found guilty of plotting to illegally opt temporary workers out of the company’s pension scheme.


Directors Phil Tong and Adam Hinkley were found to have encouraged five senior staff at the recruitment agency to opt temporary workers out of the company pension scheme so that Workchain could avoid making pension payments on their behalf.


Workchain’s directors and five senior staff all pleaded guilty to computer misuse offences.


In a statement, the Pensions Regulator revealed that Derby Crown Court ordered Workchain to pay a £200k fine, and £60,930 costs. Additionally, Tong and Hinkley were each given a prison sentence of four months, suspended for two years, and ordered to complete 200 hours of community service.


A joint investigation into Workchain by the Pensions Regulator, the Employment Agency Standards Inspectorate, Derbyshire Constabulary and Nottingham Constabulary unearthed the activity after The National Employment Savings Trust (NEST) reported its concerns to the regulator in 2014.

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