Employee retirement

When your employee retires, your employment relationship ends. Read what you should remember as an employer before the retirement of an employee.

An employee is retiring on old-age pension

When your employee notifies that they will retire on old-age pension, agree together on their last working day. Also remember to terminate the employment relationship. It is advisable to end the employment relationship on the last day of the month, because pension payments always start at the beginning of the month.

Remind your employee to apply for pension well in advance, approximately one month before their last working day. Submit a report on the cancellation of the employment relationship and payment of the final salary to the Tax Administration's Incomes Register well in advance.

Your employee may also choose another alternative than old-age pension, such as partial old-age pension or years-of-service pension. In questions related to these, you should contact the employer's pension insurance company.

More information

Encourage your employee to continue their career 

If your employee’s work ability changes, retirement is not the only option. Your employee's reduced work ability may prevent them from performing their current work, but they may be able to do other work or to continue in their current work on a part-time basis.

There are many ways to help your employee to continue in working life. For example, you can

  • rearrange tasks,
  • lighten tasks,
  • provide vocational rehabilitation, or
  • continue the employment relationship through different forms of pension, such as partial disability pension or partial early old-age pension.
Read more