The biggest change affecting employers is the introduction of auto-enrolment for new recruits, including agency workers. Employers whose pension arrangements meet certain standards will need to ensure that new joiners are automatically enrolled into their pension scheme, and given the chance to opt out. Others will need to ensure that workers are enrolled into the nationally run personal accounts scheme.

Organisations who continue to run their own qualifying pension scheme will need to "self-certify" on an annual basis, confirming that the scheme meets the minimum standards comparable to personal accounts.

Those currently paying employer contributions into pensions that are less than 3% of total annual earnings (including bonuses and overtime - but within a prescribed earnings band) could find themselves paying more towards pensions after 2012. According to figures quoted in Occupational Pensions (subscription required), the total cost of new contributions to be made by employers will be about £2.9 billion a year, or 0.7% of total labour costs.

Details of the planned personal accounts are in the XpertHR employment law reference manual (subscription required).