Good pension news for renewables workers

In the past, those affected were mainly oil and gas rig workers. But as the UK increases its commitment to green energy, these traditions are likely to permeate into the growing renewables sector, writes Neil Carrington, director of Bon Accord Employment Services, an Aberdeen based company focused on niche aspects of human resource and payroll support.

Due to the history and complexity of the legislation for people who live in one place and work in another, seafarers and offshore employees have often lacked the rights that their onshore counterparts have.

But now, the National Union of Rail, Maritime and Transport Workers (RMT) claims to have significantly boosted conditions. From April 2012, seafarers and offshore workers will be automatically enrolled in the Pensions Act 2008, legislation that already applies to land based workers. Employers will now be obliged to enrol sea based staff in a minimum statutory pension scheme.

But celebrations may be premature. Consultations are still ongoing, as they should be. It is not yet clear who will be part of the new regulations. For example, whether only UK Continental Shelf workers will be included, or if it will stretch to workers in the Irish Sea, EC waters, Norway and the Faroes. In addition, it could be difficult to make a division between UK offshore workers and those who work onshore but rotate in and out of the country. Likewise, mariners working primarily overseas face exclusion from new privileges.

For the growing proportion of workers in the renewables sector, it’s good news. The proximity of most installations to UK soil will secure their enrolment in the scheme.

In contrast, the remote location of most oil and gas rigs makes the eligibility for this industry far more complex. The new legislation means that non-UK citizens working in Britain can demand pension contributions from their UK employers. This also means that an employee with no existing right to do so could make a claim to a UK Employment Tribunal about a perceived pensions grievance.

UK employers do not yet know enough and are apprehensive about the risks. They must start asking questions to ensure their organisation is in the best, and most informed, position possible. April might seem like a long way off but action must be taken now. Prevention is always better than cure.