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What happens after I cancel a worker’s enrolment?

Sometimes it can take a while to realise that you’ve enrolled a worker in error or at the wrong time and you may have already made contributions for them. As the worker shouldn’t have had a NEST account, we’ll need to return the contributions to you once you’ve cancelled the worker’s enrolment.

It can take up to five working days to complete a worker’s enrolment cancellation. We’ll send a message to your NEST online mailbox telling you when the enrolments have been cancelled and the amount of money that’ll be refunded.

There’s no charge for cancelling a worker’s enrolment but the amount of the refund will depend on the value of the worker’s money at the time of the cancellation.

If an automatically enrolled or opt in worker’s enrolment is cancelled within the first six weeks then we’ll refund any contributions in full. We don’t invest any contributions received within the first six weeks of these enrolments to allow time for opting out.

For other enrolment types, you’ll receive a full refund for any money that has not yet been invested. If the money has been invested, your refund may be subject to market adjustments. This also applies to automatically enrolled and opt in workers if the enrolment is cancelled after six weeks.

Whether the value of the investments has gone up or down, you need to make sure your workers are refunded the full amount that was deducted from their pay.

You’ll also have to pay for any loss of investment due to market adjustments on the worker’s account. So if the worker’s pot drops in value, this also needs to be accounted for so that you’re refunding the full value of the contributions deducted from their pay.

Any contributions that the workers have contributed themselves through their online account will be refunded directly to them. For more information on how to cancel a worker’s enrolment please see How do I cancel a member's enrolment?

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