The Pensions Ombudsman (TPO) has upheld a complaint against The Alliance Automotive Group for failing to pay contributions into a worker's pension despite deducting contributions from his pay.

The employer was ordered to pay the complainant, Mr R, £1,000 for the serious distress and inconvenience it had caused him.

Mr R complained that his employer failed to pay his contributions into the scheme between November 2018 and April 2019 despite deducting them from his pay.

On 26 April 2022, TPO asked the employer for a response, but none was received.

An opinion letter was sent to all parties upholding Mr R's complaint, including a £1,000 award for serious distress and inconvenience.

On 12 October 2022, the employer contacted TPO and said it disagreed with the opinion letter.

The employer confirmed to TPO that unpaid pension contributions and investment loss had been applied to Mr R's plan but not the £1,000 award.

The case was passed on to the adjudicator, who concluded that the employer was required to take further action as it had failed to remit the contributions due to the scheme.

Therefore, due to its maladministration, Mr L was not in the financial position he ought to be in.

It also said the award of £1,000 for the non-financial injustice was appropriate in the circumstances.

The employer disagreed with the adjudicator's decision, so the complaint was passed over to the deputy ombudsman, Camilla Barry, who agreed with the adjudicator's opinion.

In her decision, Barry stated: "The employer has now paid both the employee and employer contributions into the scheme, however the delay in doing so amounts to unjust enrichment.

"This was exacerbated by the employer failing to respond to TPO to bring Mr R's complaint to a resolution.

"To put matters right, the employer shall, within 28 days of this determination, pay Mr R £1,000 for the serious distress and inconvenience he has experienced."

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