The government has proposed to exempt employees who work both in the UK and European Economic Area (EEA) member states from auto-enrolment.
Employers should not have to auto-enrol workers who are subject to the EEA's labour laws into workplace pension schemes from October 2012, the government said.
It would be too difficult for employers to find a scheme which complies with both UK and EEA law in order to be suitable for dual status workers, the Department for Work and Pensions (DWP) said.
The cost of auto-enrolling dual status workers would be "disproportionate" compared to the cost of enrolling non-dual status workers, according to the DWP.
The DWP's two proposed options for an exemption both require employers to identify dual status workers and exclude them from auto-enrolment.
The government estimated there are about 9,000 dual status workers employed in the UK earning on average £42,000 per year who would be eligible for auto-enrolment according to current legislation.
Of these, 2,000 would opt out of auto-enrolment, leaving a potential 7,000 affected by the rule change.
Pensions minister Steve Webb said: "This [consultation] addresses an issue which could potentially place an unnecessary burden on employers to find a pension scheme into which they can automatically enrol dual-status workers; those who are simultaneously jobholders and qualifying persons."
The consultation will end on 2 April 2012.
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