More than 25,000 businesses, including pubs, are flouting the law by not offering stakeholder pension schemes for their staff.
Since October 2001, all businesses employing five or more staff are required by law to make a pension available to employees. If they fail to do so they are liable to a fine of up to £50,000.
Although companies are not forced to contribute financially to employees' pensions, the government set up the scheme to encourage workers to save for the future. But it doesn't seem to be working.
Nick Edmans, communications manager at the Occupational Pensions Regulatory Authority (OPRA), which is responsible for implementing the scheme, said although not one company has yet been fined, it was following up all reports of non-compliance.
He said: "It has not been necessary to be heavy-handed or fine anyone yet because firms have always addressed the matter very quickly."
But insurance firm AXA found that a quarter of firms employing between 11 and 25 people did not have a pension scheme in place.
Its latest survey, which looked at businesses with a turnover of more than £1 million, also revealed that more than one in 10 firms that employ between 25 and 100 workers did not have a pension scheme.
And even some of the larger companies were also flouting the law. One in 20 firms employing more than 100 staff did not offer a stakeholder or occupational pension.
Steve Folkard, Head of Pensions Marketing at AXA, said: "This is a major issue requiring urgent action. It seems that companies of all sizes are unaware of their legal responsibility to provide access to a pension scheme for their staff."
Any employees who are concerned that they are not offered a stakeholder pension scheme should contact OPRA on 01273 627600.