Johnsons Shoes Company failed to provide the Regulator with a statement of compliance by the statutory deadline after their staging date had passed, and subsequently failed to comply with an enforcement notice. When the company still did not comply a fixed penalty was issued, followed by escalating penalties.
The company eventually provided the statement of compliance and paid the £400 fixed penalty. However, they refused to pay the escalating penalty which was increasing by £2,500 per day eventually reaching £40,000.
After the Regulator started legal action in the County Court Johnsons paid up. The Regulator released details of the case in order to bring to the attention of companies the fact that the Regulator will use all powers at its disposal to ensure compliance with auto-enrolment responsibilities.