Employer Reference Numbers (ERN) sometimes known as PAYE reference numbers are individual codes assigned by the HMRC to all businesses who have employees. They are used for a number of scenarios but most commonly on company end of year tax returns or can be requested by employees for their own tax credits. They usually come in one of the following formats: 123/XX12345, or 123/X12345 (prior to 2001) and very occasionally other variations outside of this. You can find this located in various places such as Payslips and Tax forms or you can simply ask your accountant if you cannot find or have forgotten it. There are some scenarios where you will not have an ERN number such as a business with no employees or employees who are all paid below the threshold, however outside of these it is likely you will have been assigned one.

What has all of this got to do with insurance? From April 2012 it became compulsory for Insurers to request copies of ERN numbers for businesses and their subsidiaries if applicable. These are allocated against the Employers Liability Tracing Office (ELTO) a centralised database that includes ERN’s and information on Businesses Employer’s Liability policies and can be accessed by Insurers with the aim to make Employment Lability claims easier to process. Employers Liability cover is a legal requirement in the United Kingdom in order to protect employees and businesses alike in the event of a claim. You can find more information on this and some exemptions HERE. 

The gathering of ERN’s by insurers is beneficial to Insurers and Businesses alike as it streamlines the processing of claims for insurers allowing them to establish if and when an employee works for you and the validity of their claim. It also provides a historical database of Employers Liability cover should a claim occur at a future date a log of which insurer held the policy held the insurance at the time of the claim is kept.

For more information on Employers Liability cover and your requirements contact us today.