My employee is retiring

How should I proceed when my employee is retiring or is at the final stretches of their career? Remember at least the following.

My employee wants to take job alternation leave

Job alternation leave is an arrangement concerning a longer leave which is agreed upon with the employer. As an employer, you undertake to hire an unemployed jobseeker who has registered with the TE Office for the duration of the leave.

The maximum age for a person taking job alternation leave is three years before their earliest possible retirement age. The maximum age does not apply to persons born before 1957.

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My employee is retiring on old-age pension

Agree with the employee on their last working day and terminate the employment relationship. It is advisable to end the employment relationship on the last day of the month, as pension payments start at the beginning of the month.

Remind the employee to apply for pension well in advance, at least one month before the end of the employment relationship. Submit a report on the termination of the employment relationship and payment of the final salary to the 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. If there are any questions, contact the employer’s pension insurance company.

Encourage your employee to continue their career

If your employee’s work ability has changed, retirement is not the only option. Reduced work ability may prevent them from continuing their current work, but they may still be able to perform some other tasks or continue working on a part-time basis.

Measures such as work arrangements made at the workplace, easier tasks, partial old-age pension, vocational rehabilitation or partial disability pension may help your employee to continue working.

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Gifts to employees

One of the ways an employer can show their appreciation for their employees is to remember them on birthdays, Christmas or when they reach milestones in service years. However, gifts and benefits are also of interest to the tax collector, so remember to read the Finnish Tax Administration’s instructions on gifts to employees.

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