

The legal procedures employers must follow and how to submit an accident report form if an employee dies at work.
The death of an employee at work, or because of work, is one of the most difficult issues an employer will ever have to deal with.
If an employee dies while at work because of an accident, natural causes, or violence, first call the emergency services. Do not move the body before they arrive.
You must also report a work-related death immediately to the Health and Safety Executive for Northern Ireland (HSENI). You can report an incident[1] to the HSENI by calling the HSENI Helpline on Tel 0800 032 0121.
If an employee dies as a result of an accident at work within one year of the date of the accident, you must also notify HSENI about this in writing as soon as it becomes known.
An investigation will then be carried out to determine the circumstances leading to their death.
As an employer, you have a duty of care to your employees, ie a duty to protect their health, safety, and welfare by providing them with a safe working environment.
If an employee dies because you failed in your duty of care and it is found that you or your business have committed an offence you could be fined and/or sent to prison.
Most employers are required to have employer's liability insurance[2]. This provides insurance against claims for compensation and legal costs if an employee dies or becomes ill or injured as a result of working for you - see insure your business: people, life, and health[3].
Note that a representative of an employee who has died, usually the executor of their estate, can bring a case against an employer on behalf of the employee.
Payroll, pensions and managing workloads when an employee dies.
When an employee dies there are a number of practical issues you will need to sort out. You will have to deal with payroll and pension issues. You will also have to make temporary arrangements to cover their work.
You or your payroll department, if you have one, must calculate the final pay amount owed to the employee. You should make sure this is paid to the deceased employee's personal representative, usually the executor of the estate.
You will need to consider whether the employee was:
Payments made after an employee's death are still subject to the same tax rules as normal. However, Class 1 National Insurance contributions (NICs) - from both employer and employee - do not have to be made and a P45 does not need to be produced.
For more information on dealing with payroll after an employee dies, see employees joining, leaving or changing their circumstances.
A surviving spouse or other dependants may be entitled to receive a survivor's pension.
In some cases, a lump-sum payment may become available. This will often be paid to the surviving spouse, or to a person named on the employee's nomination form, or to the executor of the estate as decided by the scheme's trustees.
If the pension scheme is trust based, the trustee chair of the pension scheme will be able to provide further detail on any payments which need to be made to the deceased's dependants.
If the pension scheme is contract based (eg a group personal pension), you will need to approach the scheme provider. They will be able to advise on any death-in-service benefits that are due. Know your legal obligations on pensions.
You will have to make arrangements to cover the deceased employee's work. In the short term, you could:
You can then begin the process of recruiting staff.
Informing employees and external contacts of an employee's death, and considering bereavement counsellors to address emotional stress.
When an employee dies, you will need to inform other members of staff with sensitivity and compassion. The death of an employee can have an impact on the whole workforce. It can be especially difficult if the death is sudden, happens at work, or if multiple friends and family members are all employed by the same organisation. How you handle the death of an employee can have a long-lasting effect on the relations between the employer and the workforce. Be as honest as you can about the cause of death.
You might want to:
You also need to contact customers and suppliers - anyone who used to deal with the employee - to inform them of the death. How you do this will depend on the relationship you have with them. You may choose to email or post a letter, or you may decide to telephone.
Inform next of kin sensitively about any life assurance, death-in-service benefits, wages, and pension entitlements.
When an employee dies at work, you will need to deal with the next of kin very sensitively. A manager who knows the employee well may be the most appropriate person to break the news, or sometimes a colleague who knows the family well may volunteer.
At an appropriate time, you will need to inform the next of kin about their entitlement to:
See practical steps when an employee dies.
After establishing when the funeral is to take place, it is a good idea to ask the next of kin whether colleagues of the deceased are welcome to attend.
You may wish to send a letter of condolence to the family of the deceased. You might also want to organise a floral arrangement to send to the funeral, or arrange some other tribute, and allow employees to contribute towards this. You may wish to place a notice in the local press.
It might be appropriate to honour the person who died, with others at work. For example, you might consider:
What to do if the media take an interest in the death of an employee.
If an employee dies while they are at work, the media may hear about it and want to report the incident, particularly if the death was a result of an accident or violence.
How much media interest is created - and how you handle that interest - will depend on the nature of the incident.
If one person dies, it may only be reported in the local press. However, if there is a major accident and many people die including employees, public and/or fire and rescue personnel, the media coverage may be national or even international.
When it comes to your business answering calls from media organisations, it is best not to ignore them - bad media coverage could turn a human tragedy into a business disaster. However, staff should be instructed to refer any enquiries to a particular individual or department that is best equipped to deal with them. The image your business presents to the business community and public should be as positive, empathetic and understanding as possible whatever the circumstances.
You could release a verbal or written statement:
Alternatively, you could hold a press conference so that you and/or your legal representative and any other interested parties can answer media questions face to face.
If you have someone in your business with experience of public relations (PR) and/or dealing with the media, they should manage media relations. If you don't, you could engage a PR consultant to advise you on managing the media interest.
However you manage media relations, you should avoid making promises, accusations or suggestions - it's best to stick to the basic, confirmed facts.
The legal procedures employers must follow and how to submit an accident report form if an employee dies at work.
The death of an employee at work, or because of work, is one of the most difficult issues an employer will ever have to deal with.
If an employee dies while at work because of an accident, natural causes, or violence, first call the emergency services. Do not move the body before they arrive.
You must also report a work-related death immediately to the Health and Safety Executive for Northern Ireland (HSENI). You can report an incident to the HSENI by calling the HSENI Helpline on Tel 0800 032 0121.
If an employee dies as a result of an accident at work within one year of the date of the accident, you must also notify HSENI about this in writing as soon as it becomes known.
An investigation will then be carried out to determine the circumstances leading to their death.
As an employer, you have a duty of care to your employees, ie a duty to protect their health, safety, and welfare by providing them with a safe working environment.
If an employee dies because you failed in your duty of care and it is found that you or your business have committed an offence you could be fined and/or sent to prison.
Most employers are required to have employer's liability insurance. This provides insurance against claims for compensation and legal costs if an employee dies or becomes ill or injured as a result of working for you - see insure your business: people, life, and health.
Note that a representative of an employee who has died, usually the executor of their estate, can bring a case against an employer on behalf of the employee.
Payroll, pensions and managing workloads when an employee dies.
When an employee dies there are a number of practical issues you will need to sort out. You will have to deal with payroll and pension issues. You will also have to make temporary arrangements to cover their work.
You or your payroll department, if you have one, must calculate the final pay amount owed to the employee. You should make sure this is paid to the deceased employee's personal representative, usually the executor of the estate.
You will need to consider whether the employee was:
Payments made after an employee's death are still subject to the same tax rules as normal. However, Class 1 National Insurance contributions (NICs) - from both employer and employee - do not have to be made and a P45 does not need to be produced.
For more information on dealing with payroll after an employee dies, see employees joining, leaving or changing their circumstances.
A surviving spouse or other dependants may be entitled to receive a survivor's pension.
In some cases, a lump-sum payment may become available. This will often be paid to the surviving spouse, or to a person named on the employee's nomination form, or to the executor of the estate as decided by the scheme's trustees.
If the pension scheme is trust based, the trustee chair of the pension scheme will be able to provide further detail on any payments which need to be made to the deceased's dependants.
If the pension scheme is contract based (eg a group personal pension), you will need to approach the scheme provider. They will be able to advise on any death-in-service benefits that are due. Know your legal obligations on pensions.
You will have to make arrangements to cover the deceased employee's work. In the short term, you could:
You can then begin the process of recruiting staff.
Informing employees and external contacts of an employee's death, and considering bereavement counsellors to address emotional stress.
When an employee dies, you will need to inform other members of staff with sensitivity and compassion. The death of an employee can have an impact on the whole workforce. It can be especially difficult if the death is sudden, happens at work, or if multiple friends and family members are all employed by the same organisation. How you handle the death of an employee can have a long-lasting effect on the relations between the employer and the workforce. Be as honest as you can about the cause of death.
You might want to:
You also need to contact customers and suppliers - anyone who used to deal with the employee - to inform them of the death. How you do this will depend on the relationship you have with them. You may choose to email or post a letter, or you may decide to telephone.
Inform next of kin sensitively about any life assurance, death-in-service benefits, wages, and pension entitlements.
When an employee dies at work, you will need to deal with the next of kin very sensitively. A manager who knows the employee well may be the most appropriate person to break the news, or sometimes a colleague who knows the family well may volunteer.
At an appropriate time, you will need to inform the next of kin about their entitlement to:
See practical steps when an employee dies.
After establishing when the funeral is to take place, it is a good idea to ask the next of kin whether colleagues of the deceased are welcome to attend.
You may wish to send a letter of condolence to the family of the deceased. You might also want to organise a floral arrangement to send to the funeral, or arrange some other tribute, and allow employees to contribute towards this. You may wish to place a notice in the local press.
It might be appropriate to honour the person who died, with others at work. For example, you might consider:
What to do if the media take an interest in the death of an employee.
If an employee dies while they are at work, the media may hear about it and want to report the incident, particularly if the death was a result of an accident or violence.
How much media interest is created - and how you handle that interest - will depend on the nature of the incident.
If one person dies, it may only be reported in the local press. However, if there is a major accident and many people die including employees, public and/or fire and rescue personnel, the media coverage may be national or even international.
When it comes to your business answering calls from media organisations, it is best not to ignore them - bad media coverage could turn a human tragedy into a business disaster. However, staff should be instructed to refer any enquiries to a particular individual or department that is best equipped to deal with them. The image your business presents to the business community and public should be as positive, empathetic and understanding as possible whatever the circumstances.
You could release a verbal or written statement:
Alternatively, you could hold a press conference so that you and/or your legal representative and any other interested parties can answer media questions face to face.
If you have someone in your business with experience of public relations (PR) and/or dealing with the media, they should manage media relations. If you don't, you could engage a PR consultant to advise you on managing the media interest.
However you manage media relations, you should avoid making promises, accusations or suggestions - it's best to stick to the basic, confirmed facts.
The legal procedures employers must follow and how to submit an accident report form if an employee dies at work.
The death of an employee at work, or because of work, is one of the most difficult issues an employer will ever have to deal with.
If an employee dies while at work because of an accident, natural causes, or violence, first call the emergency services. Do not move the body before they arrive.
You must also report a work-related death immediately to the Health and Safety Executive for Northern Ireland (HSENI). You can report an incident to the HSENI by calling the HSENI Helpline on Tel 0800 032 0121.
If an employee dies as a result of an accident at work within one year of the date of the accident, you must also notify HSENI about this in writing as soon as it becomes known.
An investigation will then be carried out to determine the circumstances leading to their death.
As an employer, you have a duty of care to your employees, ie a duty to protect their health, safety, and welfare by providing them with a safe working environment.
If an employee dies because you failed in your duty of care and it is found that you or your business have committed an offence you could be fined and/or sent to prison.
Most employers are required to have employer's liability insurance. This provides insurance against claims for compensation and legal costs if an employee dies or becomes ill or injured as a result of working for you - see insure your business: people, life, and health.
Note that a representative of an employee who has died, usually the executor of their estate, can bring a case against an employer on behalf of the employee.
Payroll, pensions and managing workloads when an employee dies.
When an employee dies there are a number of practical issues you will need to sort out. You will have to deal with payroll and pension issues. You will also have to make temporary arrangements to cover their work.
You or your payroll department, if you have one, must calculate the final pay amount owed to the employee. You should make sure this is paid to the deceased employee's personal representative, usually the executor of the estate.
You will need to consider whether the employee was:
Payments made after an employee's death are still subject to the same tax rules as normal. However, Class 1 National Insurance contributions (NICs) - from both employer and employee - do not have to be made and a P45 does not need to be produced.
For more information on dealing with payroll after an employee dies, see employees joining, leaving or changing their circumstances.
A surviving spouse or other dependants may be entitled to receive a survivor's pension.
In some cases, a lump-sum payment may become available. This will often be paid to the surviving spouse, or to a person named on the employee's nomination form, or to the executor of the estate as decided by the scheme's trustees.
If the pension scheme is trust based, the trustee chair of the pension scheme will be able to provide further detail on any payments which need to be made to the deceased's dependants.
If the pension scheme is contract based (eg a group personal pension), you will need to approach the scheme provider. They will be able to advise on any death-in-service benefits that are due. Know your legal obligations on pensions.
You will have to make arrangements to cover the deceased employee's work. In the short term, you could:
You can then begin the process of recruiting staff.
Informing employees and external contacts of an employee's death, and considering bereavement counsellors to address emotional stress.
When an employee dies, you will need to inform other members of staff with sensitivity and compassion. The death of an employee can have an impact on the whole workforce. It can be especially difficult if the death is sudden, happens at work, or if multiple friends and family members are all employed by the same organisation. How you handle the death of an employee can have a long-lasting effect on the relations between the employer and the workforce. Be as honest as you can about the cause of death.
You might want to:
You also need to contact customers and suppliers - anyone who used to deal with the employee - to inform them of the death. How you do this will depend on the relationship you have with them. You may choose to email or post a letter, or you may decide to telephone.
Inform next of kin sensitively about any life assurance, death-in-service benefits, wages, and pension entitlements.
When an employee dies at work, you will need to deal with the next of kin very sensitively. A manager who knows the employee well may be the most appropriate person to break the news, or sometimes a colleague who knows the family well may volunteer.
At an appropriate time, you will need to inform the next of kin about their entitlement to:
See practical steps when an employee dies.
After establishing when the funeral is to take place, it is a good idea to ask the next of kin whether colleagues of the deceased are welcome to attend.
You may wish to send a letter of condolence to the family of the deceased. You might also want to organise a floral arrangement to send to the funeral, or arrange some other tribute, and allow employees to contribute towards this. You may wish to place a notice in the local press.
It might be appropriate to honour the person who died, with others at work. For example, you might consider:
What to do if the media take an interest in the death of an employee.
If an employee dies while they are at work, the media may hear about it and want to report the incident, particularly if the death was a result of an accident or violence.
How much media interest is created - and how you handle that interest - will depend on the nature of the incident.
If one person dies, it may only be reported in the local press. However, if there is a major accident and many people die including employees, public and/or fire and rescue personnel, the media coverage may be national or even international.
When it comes to your business answering calls from media organisations, it is best not to ignore them - bad media coverage could turn a human tragedy into a business disaster. However, staff should be instructed to refer any enquiries to a particular individual or department that is best equipped to deal with them. The image your business presents to the business community and public should be as positive, empathetic and understanding as possible whatever the circumstances.
You could release a verbal or written statement:
Alternatively, you could hold a press conference so that you and/or your legal representative and any other interested parties can answer media questions face to face.
If you have someone in your business with experience of public relations (PR) and/or dealing with the media, they should manage media relations. If you don't, you could engage a PR consultant to advise you on managing the media interest.
However you manage media relations, you should avoid making promises, accusations or suggestions - it's best to stick to the basic, confirmed facts.
How to deal with an employee who has handed in their resignation and the requirements around notice periods.
If an employee tells you that they are resigning or intend to resign, the first thing you need to do is find out why.
If the resignation is unexpected, find out why they want to resign. Is there anything you can do to make them change their mind?
Sometimes employees resign because they fall out with someone, eg their line manager. For advice on handling such situations, see resignations in the heat of the moment.
The resignation may be due to family commitments that mean the employee is unable to continue working the same hours for you. Are there changes you can make to working arrangements to accommodate this? See flexible working: the law and best practice.
If the employee is resigning to work for one of your competitors, consider whether it would be worth improving their remuneration/benefits package, working environment, or looking into their promotion prospects.
It is also important that you refer to the employment contract, written statement, or any other agreement you have with the employee to check what period of notice they are required to give.
If there is nothing on notice periods in any written agreement, the statutory notice period will apply, which, for employees with at least one month's service, is a minimum of one week. Employees can choose to give more notice than is required. If you then end their employment during the notice period they have given this may be considered a dismissal, not a resignation.
For more information, see how to issue the correct periods of notice.
Useful checklist to help employers manage the resignation process.
If you accept an employee's resignation, there are several things you need to do to make their departure as smooth as possible.
You should make sure of the following when an employee resigns.
Get written confirmation of the resignation and the date of resignation. This will help you avoid disputes over the exact date of the resignation and the start of any notice period.
Decide whether you wish the employee to work out their full notice period. You may find it more appropriate to pay the employee in lieu of all or part of the notice period if your contract provides for it or the employee agrees. However, if you do so, be sure that you are covered in respect of having another employee who can immediately take on the job.
Confirm the employee's notice period, usually part of their contract of employment. If it is not, statutory notice will apply. See how to issue the correct periods of notice.
Agree with the employee on the terms of an announcement to other staff concerning their departure, if appropriate.
Organise a handover period. This allows for a smooth handover to existing staff or the employee's replacement of key tasks and responsibilities.
Arrange an exit interview. This determines the reasons for the employee's resignation and can help you address wider issues if you are seeing an increase in staff turnover. See resignations: conducting exit interviews.
Retrieve security passes and all other property of your business, eg tools, uniforms, computers, and company cars.
Organise their final payment including all money owing, eg pay in lieu of working a notice period, money for unused holidays, overtime, and bonus payments. See calculate final pay when a worker leaves.
The person leaving may become a client or may be able to refer business to you. Equally, a disgruntled ex-employee can damage the reputation of your business if they leave on poor terms, eg having identified you as their previous employer and then writing about their experiences as your employee on their social media account. This may be the case where the employee has details on their profile which identifies them as having worked for you. Read Labour Relations Agency advice on social media and the employment relationship.
Organise a farewell gift or party, if appropriate. Acknowledgement of good service appreciated is valuable for maintaining staff morale and the promotion of a positive organisational culture.
Make a point of saying goodbye on the actual day the person leaves and thank them again for all their hard work.
Be careful about references - see when workers leave your employment.
Investigate the reasons staff may have for leaving your business so you can address them and reduce staff turnover.
When employees leave, it is a good idea to arrange an exit interview. You can then use their response to determine whether there are any underlying issues to be addressed.
However, getting employees to reveal the real reason they're leaving can be difficult.
For example, if they say that they have been offered more money by another employer, this doesn't necessarily explain why they started looking for a new job in the first place. It may be that the employee didn't get on with their manager or a team colleague, or that they think they were unfairly overlooked for promotion.
If, during the interview, the employee starts making accusations against a colleague, don't act too hastily. You must ensure there is a fair investigation.
Some useful questions you could ask include:
The employee's answers may be influenced by their need for a reference.
Ideally, someone other than the leaver's manager should try to find out why they're leaving. They may have difficulty telling their manager about problems with their job or department.
You should also look out for reasons that might lead to employees claiming constructive dismissal or discrimination. These wrongs could be corrected before the employee leaves but beware not to suggest any reasons or say anything that could later be used against you. See dismissing employees and how to prevent discrimination and value diversity.
How to find out whether or not an employee means to resign following an argument.
Sometimes an employee may say that they are resigning after an argument with their manager or another colleague. In such situations, they might not really have meant to resign.
If this is the case, it may be risky to act as though the contract has ended because the employee could later claim unfair or constructive dismissal. See dismissing employees.
If an employee seems to have resigned or has walked out after an argument:
You should also be careful not to say things in the heat of the moment that could be misinterpreted as a dismissal.
It is a good idea to train managers in handling conflict. This can help resolve any workplace problems straight away, rather than allowing them to escalate to the point where formal procedures need to be applied. See managing conflict.
Resignations when an employee believes you have breached a fundamental term of their employment contract.
An employee may be entitled to resign if you fundamentally breach a term of their employment contract. This is known as constructive dismissal.
Breaches of contract that may give rise to unfair constructive dismissal claims might include anything that makes it impossible or intolerable for the employee to continue doing the job.
Some examples of breaches of the employment contract include:
For this reason, you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details, see how to change an employee's terms of employment.
If you don't get the employee's agreement, they could raise a grievance with you. When dealing with such a grievance, you should follow a fair and reasonable procedure. Ideally, your procedure should follow the good practice principles set out in the Labour Relations Agency (LRA) code of practice on disciplinary and grievance procedures.
Situations where an employee may and may not be able to claim constructive dismissal following a TUPE transfer.
Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), if a business - or a part of a business - is transferred to another business, in most cases the employees of the old employer will automatically transfer to the new employer on their existing terms and conditions.
However, an employee can't be transferred to a new employer against their will and may object to the transfer before it takes place.
In this case, if they refuse to have their contract transferred to the new employer, the employee is regarded as having resigned with effect from the transfer date. As a result, there is generally:
However, if the transfer results in a significant and unfavourable change to an employee's working conditions - eg their new place of work is in a different more inconvenient location from their old one or there are substantial changes to their role/duties - they could resign and claim unfair constructive dismissal. However, it will ultimately be a matter for the Industrial Tribunal to determine in light of the circumstances of each case.
For more information on business transfers, see responsibilities to employees if you buy or sell a business.
How to deal with an employee who has handed in their resignation and the requirements around notice periods.
If an employee tells you that they are resigning or intend to resign, the first thing you need to do is find out why.
If the resignation is unexpected, find out why they want to resign. Is there anything you can do to make them change their mind?
Sometimes employees resign because they fall out with someone, eg their line manager. For advice on handling such situations, see resignations in the heat of the moment.
The resignation may be due to family commitments that mean the employee is unable to continue working the same hours for you. Are there changes you can make to working arrangements to accommodate this? See flexible working: the law and best practice.
If the employee is resigning to work for one of your competitors, consider whether it would be worth improving their remuneration/benefits package, working environment, or looking into their promotion prospects.
It is also important that you refer to the employment contract, written statement, or any other agreement you have with the employee to check what period of notice they are required to give.
If there is nothing on notice periods in any written agreement, the statutory notice period will apply, which, for employees with at least one month's service, is a minimum of one week. Employees can choose to give more notice than is required. If you then end their employment during the notice period they have given this may be considered a dismissal, not a resignation.
For more information, see how to issue the correct periods of notice.
Useful checklist to help employers manage the resignation process.
If you accept an employee's resignation, there are several things you need to do to make their departure as smooth as possible.
You should make sure of the following when an employee resigns.
Get written confirmation of the resignation and the date of resignation. This will help you avoid disputes over the exact date of the resignation and the start of any notice period.
Decide whether you wish the employee to work out their full notice period. You may find it more appropriate to pay the employee in lieu of all or part of the notice period if your contract provides for it or the employee agrees. However, if you do so, be sure that you are covered in respect of having another employee who can immediately take on the job.
Confirm the employee's notice period, usually part of their contract of employment. If it is not, statutory notice will apply. See how to issue the correct periods of notice.
Agree with the employee on the terms of an announcement to other staff concerning their departure, if appropriate.
Organise a handover period. This allows for a smooth handover to existing staff or the employee's replacement of key tasks and responsibilities.
Arrange an exit interview. This determines the reasons for the employee's resignation and can help you address wider issues if you are seeing an increase in staff turnover. See resignations: conducting exit interviews.
Retrieve security passes and all other property of your business, eg tools, uniforms, computers, and company cars.
Organise their final payment including all money owing, eg pay in lieu of working a notice period, money for unused holidays, overtime, and bonus payments. See calculate final pay when a worker leaves.
The person leaving may become a client or may be able to refer business to you. Equally, a disgruntled ex-employee can damage the reputation of your business if they leave on poor terms, eg having identified you as their previous employer and then writing about their experiences as your employee on their social media account. This may be the case where the employee has details on their profile which identifies them as having worked for you. Read Labour Relations Agency advice on social media and the employment relationship.
Organise a farewell gift or party, if appropriate. Acknowledgement of good service appreciated is valuable for maintaining staff morale and the promotion of a positive organisational culture.
Make a point of saying goodbye on the actual day the person leaves and thank them again for all their hard work.
Be careful about references - see when workers leave your employment.
Investigate the reasons staff may have for leaving your business so you can address them and reduce staff turnover.
When employees leave, it is a good idea to arrange an exit interview. You can then use their response to determine whether there are any underlying issues to be addressed.
However, getting employees to reveal the real reason they're leaving can be difficult.
For example, if they say that they have been offered more money by another employer, this doesn't necessarily explain why they started looking for a new job in the first place. It may be that the employee didn't get on with their manager or a team colleague, or that they think they were unfairly overlooked for promotion.
If, during the interview, the employee starts making accusations against a colleague, don't act too hastily. You must ensure there is a fair investigation.
Some useful questions you could ask include:
The employee's answers may be influenced by their need for a reference.
Ideally, someone other than the leaver's manager should try to find out why they're leaving. They may have difficulty telling their manager about problems with their job or department.
You should also look out for reasons that might lead to employees claiming constructive dismissal or discrimination. These wrongs could be corrected before the employee leaves but beware not to suggest any reasons or say anything that could later be used against you. See dismissing employees and how to prevent discrimination and value diversity.
How to find out whether or not an employee means to resign following an argument.
Sometimes an employee may say that they are resigning after an argument with their manager or another colleague. In such situations, they might not really have meant to resign.
If this is the case, it may be risky to act as though the contract has ended because the employee could later claim unfair or constructive dismissal. See dismissing employees.
If an employee seems to have resigned or has walked out after an argument:
You should also be careful not to say things in the heat of the moment that could be misinterpreted as a dismissal.
It is a good idea to train managers in handling conflict. This can help resolve any workplace problems straight away, rather than allowing them to escalate to the point where formal procedures need to be applied. See managing conflict.
Resignations when an employee believes you have breached a fundamental term of their employment contract.
An employee may be entitled to resign if you fundamentally breach a term of their employment contract. This is known as constructive dismissal.
Breaches of contract that may give rise to unfair constructive dismissal claims might include anything that makes it impossible or intolerable for the employee to continue doing the job.
Some examples of breaches of the employment contract include:
For this reason, you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details, see how to change an employee's terms of employment.
If you don't get the employee's agreement, they could raise a grievance with you. When dealing with such a grievance, you should follow a fair and reasonable procedure. Ideally, your procedure should follow the good practice principles set out in the Labour Relations Agency (LRA) code of practice on disciplinary and grievance procedures.
Situations where an employee may and may not be able to claim constructive dismissal following a TUPE transfer.
Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), if a business - or a part of a business - is transferred to another business, in most cases the employees of the old employer will automatically transfer to the new employer on their existing terms and conditions.
However, an employee can't be transferred to a new employer against their will and may object to the transfer before it takes place.
In this case, if they refuse to have their contract transferred to the new employer, the employee is regarded as having resigned with effect from the transfer date. As a result, there is generally:
However, if the transfer results in a significant and unfavourable change to an employee's working conditions - eg their new place of work is in a different more inconvenient location from their old one or there are substantial changes to their role/duties - they could resign and claim unfair constructive dismissal. However, it will ultimately be a matter for the Industrial Tribunal to determine in light of the circumstances of each case.
For more information on business transfers, see responsibilities to employees if you buy or sell a business.
How to deal with an employee who has handed in their resignation and the requirements around notice periods.
If an employee tells you that they are resigning or intend to resign, the first thing you need to do is find out why.
If the resignation is unexpected, find out why they want to resign. Is there anything you can do to make them change their mind?
Sometimes employees resign because they fall out with someone, eg their line manager. For advice on handling such situations, see resignations in the heat of the moment.
The resignation may be due to family commitments that mean the employee is unable to continue working the same hours for you. Are there changes you can make to working arrangements to accommodate this? See flexible working: the law and best practice.
If the employee is resigning to work for one of your competitors, consider whether it would be worth improving their remuneration/benefits package, working environment, or looking into their promotion prospects.
It is also important that you refer to the employment contract, written statement, or any other agreement you have with the employee to check what period of notice they are required to give.
If there is nothing on notice periods in any written agreement, the statutory notice period will apply, which, for employees with at least one month's service, is a minimum of one week. Employees can choose to give more notice than is required. If you then end their employment during the notice period they have given this may be considered a dismissal, not a resignation.
For more information, see how to issue the correct periods of notice.
Useful checklist to help employers manage the resignation process.
If you accept an employee's resignation, there are several things you need to do to make their departure as smooth as possible.
You should make sure of the following when an employee resigns.
Get written confirmation of the resignation and the date of resignation. This will help you avoid disputes over the exact date of the resignation and the start of any notice period.
Decide whether you wish the employee to work out their full notice period. You may find it more appropriate to pay the employee in lieu of all or part of the notice period if your contract provides for it or the employee agrees. However, if you do so, be sure that you are covered in respect of having another employee who can immediately take on the job.
Confirm the employee's notice period, usually part of their contract of employment. If it is not, statutory notice will apply. See how to issue the correct periods of notice.
Agree with the employee on the terms of an announcement to other staff concerning their departure, if appropriate.
Organise a handover period. This allows for a smooth handover to existing staff or the employee's replacement of key tasks and responsibilities.
Arrange an exit interview. This determines the reasons for the employee's resignation and can help you address wider issues if you are seeing an increase in staff turnover. See resignations: conducting exit interviews.
Retrieve security passes and all other property of your business, eg tools, uniforms, computers, and company cars.
Organise their final payment including all money owing, eg pay in lieu of working a notice period, money for unused holidays, overtime, and bonus payments. See calculate final pay when a worker leaves.
The person leaving may become a client or may be able to refer business to you. Equally, a disgruntled ex-employee can damage the reputation of your business if they leave on poor terms, eg having identified you as their previous employer and then writing about their experiences as your employee on their social media account. This may be the case where the employee has details on their profile which identifies them as having worked for you. Read Labour Relations Agency advice on social media and the employment relationship.
Organise a farewell gift or party, if appropriate. Acknowledgement of good service appreciated is valuable for maintaining staff morale and the promotion of a positive organisational culture.
Make a point of saying goodbye on the actual day the person leaves and thank them again for all their hard work.
Be careful about references - see when workers leave your employment.
Investigate the reasons staff may have for leaving your business so you can address them and reduce staff turnover.
When employees leave, it is a good idea to arrange an exit interview. You can then use their response to determine whether there are any underlying issues to be addressed.
However, getting employees to reveal the real reason they're leaving can be difficult.
For example, if they say that they have been offered more money by another employer, this doesn't necessarily explain why they started looking for a new job in the first place. It may be that the employee didn't get on with their manager or a team colleague, or that they think they were unfairly overlooked for promotion.
If, during the interview, the employee starts making accusations against a colleague, don't act too hastily. You must ensure there is a fair investigation.
Some useful questions you could ask include:
The employee's answers may be influenced by their need for a reference.
Ideally, someone other than the leaver's manager should try to find out why they're leaving. They may have difficulty telling their manager about problems with their job or department.
You should also look out for reasons that might lead to employees claiming constructive dismissal or discrimination. These wrongs could be corrected before the employee leaves but beware not to suggest any reasons or say anything that could later be used against you. See dismissing employees and how to prevent discrimination and value diversity.
How to find out whether or not an employee means to resign following an argument.
Sometimes an employee may say that they are resigning after an argument with their manager or another colleague. In such situations, they might not really have meant to resign.
If this is the case, it may be risky to act as though the contract has ended because the employee could later claim unfair or constructive dismissal. See dismissing employees.
If an employee seems to have resigned or has walked out after an argument:
You should also be careful not to say things in the heat of the moment that could be misinterpreted as a dismissal.
It is a good idea to train managers in handling conflict. This can help resolve any workplace problems straight away, rather than allowing them to escalate to the point where formal procedures need to be applied. See managing conflict.
Resignations when an employee believes you have breached a fundamental term of their employment contract.
An employee may be entitled to resign if you fundamentally breach a term of their employment contract. This is known as constructive dismissal.
Breaches of contract that may give rise to unfair constructive dismissal claims might include anything that makes it impossible or intolerable for the employee to continue doing the job.
Some examples of breaches of the employment contract include:
For this reason, you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details, see how to change an employee's terms of employment.
If you don't get the employee's agreement, they could raise a grievance with you. When dealing with such a grievance, you should follow a fair and reasonable procedure. Ideally, your procedure should follow the good practice principles set out in the Labour Relations Agency (LRA) code of practice on disciplinary and grievance procedures.
Situations where an employee may and may not be able to claim constructive dismissal following a TUPE transfer.
Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), if a business - or a part of a business - is transferred to another business, in most cases the employees of the old employer will automatically transfer to the new employer on their existing terms and conditions.
However, an employee can't be transferred to a new employer against their will and may object to the transfer before it takes place.
In this case, if they refuse to have their contract transferred to the new employer, the employee is regarded as having resigned with effect from the transfer date. As a result, there is generally:
However, if the transfer results in a significant and unfavourable change to an employee's working conditions - eg their new place of work is in a different more inconvenient location from their old one or there are substantial changes to their role/duties - they could resign and claim unfair constructive dismissal. However, it will ultimately be a matter for the Industrial Tribunal to determine in light of the circumstances of each case.
For more information on business transfers, see responsibilities to employees if you buy or sell a business.
How to deal with an employee who has handed in their resignation and the requirements around notice periods.
If an employee tells you that they are resigning or intend to resign, the first thing you need to do is find out why.
If the resignation is unexpected, find out why they want to resign. Is there anything you can do to make them change their mind?
Sometimes employees resign because they fall out with someone, eg their line manager. For advice on handling such situations, see resignations in the heat of the moment.
The resignation may be due to family commitments that mean the employee is unable to continue working the same hours for you. Are there changes you can make to working arrangements to accommodate this? See flexible working: the law and best practice.
If the employee is resigning to work for one of your competitors, consider whether it would be worth improving their remuneration/benefits package, working environment, or looking into their promotion prospects.
It is also important that you refer to the employment contract, written statement, or any other agreement you have with the employee to check what period of notice they are required to give.
If there is nothing on notice periods in any written agreement, the statutory notice period will apply, which, for employees with at least one month's service, is a minimum of one week. Employees can choose to give more notice than is required. If you then end their employment during the notice period they have given this may be considered a dismissal, not a resignation.
For more information, see how to issue the correct periods of notice.
Useful checklist to help employers manage the resignation process.
If you accept an employee's resignation, there are several things you need to do to make their departure as smooth as possible.
You should make sure of the following when an employee resigns.
Get written confirmation of the resignation and the date of resignation. This will help you avoid disputes over the exact date of the resignation and the start of any notice period.
Decide whether you wish the employee to work out their full notice period. You may find it more appropriate to pay the employee in lieu of all or part of the notice period if your contract provides for it or the employee agrees. However, if you do so, be sure that you are covered in respect of having another employee who can immediately take on the job.
Confirm the employee's notice period, usually part of their contract of employment. If it is not, statutory notice will apply. See how to issue the correct periods of notice.
Agree with the employee on the terms of an announcement to other staff concerning their departure, if appropriate.
Organise a handover period. This allows for a smooth handover to existing staff or the employee's replacement of key tasks and responsibilities.
Arrange an exit interview. This determines the reasons for the employee's resignation and can help you address wider issues if you are seeing an increase in staff turnover. See resignations: conducting exit interviews.
Retrieve security passes and all other property of your business, eg tools, uniforms, computers, and company cars.
Organise their final payment including all money owing, eg pay in lieu of working a notice period, money for unused holidays, overtime, and bonus payments. See calculate final pay when a worker leaves.
The person leaving may become a client or may be able to refer business to you. Equally, a disgruntled ex-employee can damage the reputation of your business if they leave on poor terms, eg having identified you as their previous employer and then writing about their experiences as your employee on their social media account. This may be the case where the employee has details on their profile which identifies them as having worked for you. Read Labour Relations Agency advice on social media and the employment relationship.
Organise a farewell gift or party, if appropriate. Acknowledgement of good service appreciated is valuable for maintaining staff morale and the promotion of a positive organisational culture.
Make a point of saying goodbye on the actual day the person leaves and thank them again for all their hard work.
Be careful about references - see when workers leave your employment.
Investigate the reasons staff may have for leaving your business so you can address them and reduce staff turnover.
When employees leave, it is a good idea to arrange an exit interview. You can then use their response to determine whether there are any underlying issues to be addressed.
However, getting employees to reveal the real reason they're leaving can be difficult.
For example, if they say that they have been offered more money by another employer, this doesn't necessarily explain why they started looking for a new job in the first place. It may be that the employee didn't get on with their manager or a team colleague, or that they think they were unfairly overlooked for promotion.
If, during the interview, the employee starts making accusations against a colleague, don't act too hastily. You must ensure there is a fair investigation.
Some useful questions you could ask include:
The employee's answers may be influenced by their need for a reference.
Ideally, someone other than the leaver's manager should try to find out why they're leaving. They may have difficulty telling their manager about problems with their job or department.
You should also look out for reasons that might lead to employees claiming constructive dismissal or discrimination. These wrongs could be corrected before the employee leaves but beware not to suggest any reasons or say anything that could later be used against you. See dismissing employees and how to prevent discrimination and value diversity.
How to find out whether or not an employee means to resign following an argument.
Sometimes an employee may say that they are resigning after an argument with their manager or another colleague. In such situations, they might not really have meant to resign.
If this is the case, it may be risky to act as though the contract has ended because the employee could later claim unfair or constructive dismissal. See dismissing employees.
If an employee seems to have resigned or has walked out after an argument:
You should also be careful not to say things in the heat of the moment that could be misinterpreted as a dismissal.
It is a good idea to train managers in handling conflict. This can help resolve any workplace problems straight away, rather than allowing them to escalate to the point where formal procedures need to be applied. See managing conflict.
Resignations when an employee believes you have breached a fundamental term of their employment contract.
An employee may be entitled to resign if you fundamentally breach a term of their employment contract. This is known as constructive dismissal.
Breaches of contract that may give rise to unfair constructive dismissal claims might include anything that makes it impossible or intolerable for the employee to continue doing the job.
Some examples of breaches of the employment contract include:
For this reason, you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details, see how to change an employee's terms of employment.
If you don't get the employee's agreement, they could raise a grievance with you. When dealing with such a grievance, you should follow a fair and reasonable procedure. Ideally, your procedure should follow the good practice principles set out in the Labour Relations Agency (LRA) code of practice on disciplinary and grievance procedures.
Situations where an employee may and may not be able to claim constructive dismissal following a TUPE transfer.
Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), if a business - or a part of a business - is transferred to another business, in most cases the employees of the old employer will automatically transfer to the new employer on their existing terms and conditions.
However, an employee can't be transferred to a new employer against their will and may object to the transfer before it takes place.
In this case, if they refuse to have their contract transferred to the new employer, the employee is regarded as having resigned with effect from the transfer date. As a result, there is generally:
However, if the transfer results in a significant and unfavourable change to an employee's working conditions - eg their new place of work is in a different more inconvenient location from their old one or there are substantial changes to their role/duties - they could resign and claim unfair constructive dismissal. However, it will ultimately be a matter for the Industrial Tribunal to determine in light of the circumstances of each case.
For more information on business transfers, see responsibilities to employees if you buy or sell a business.
How to deal with an employee who has handed in their resignation and the requirements around notice periods.
If an employee tells you that they are resigning or intend to resign, the first thing you need to do is find out why.
If the resignation is unexpected, find out why they want to resign. Is there anything you can do to make them change their mind?
Sometimes employees resign because they fall out with someone, eg their line manager. For advice on handling such situations, see resignations in the heat of the moment.
The resignation may be due to family commitments that mean the employee is unable to continue working the same hours for you. Are there changes you can make to working arrangements to accommodate this? See flexible working: the law and best practice.
If the employee is resigning to work for one of your competitors, consider whether it would be worth improving their remuneration/benefits package, working environment, or looking into their promotion prospects.
It is also important that you refer to the employment contract, written statement, or any other agreement you have with the employee to check what period of notice they are required to give.
If there is nothing on notice periods in any written agreement, the statutory notice period will apply, which, for employees with at least one month's service, is a minimum of one week. Employees can choose to give more notice than is required. If you then end their employment during the notice period they have given this may be considered a dismissal, not a resignation.
For more information, see how to issue the correct periods of notice.
Useful checklist to help employers manage the resignation process.
If you accept an employee's resignation, there are several things you need to do to make their departure as smooth as possible.
You should make sure of the following when an employee resigns.
Get written confirmation of the resignation and the date of resignation. This will help you avoid disputes over the exact date of the resignation and the start of any notice period.
Decide whether you wish the employee to work out their full notice period. You may find it more appropriate to pay the employee in lieu of all or part of the notice period if your contract provides for it or the employee agrees. However, if you do so, be sure that you are covered in respect of having another employee who can immediately take on the job.
Confirm the employee's notice period, usually part of their contract of employment. If it is not, statutory notice will apply. See how to issue the correct periods of notice.
Agree with the employee on the terms of an announcement to other staff concerning their departure, if appropriate.
Organise a handover period. This allows for a smooth handover to existing staff or the employee's replacement of key tasks and responsibilities.
Arrange an exit interview. This determines the reasons for the employee's resignation and can help you address wider issues if you are seeing an increase in staff turnover. See resignations: conducting exit interviews.
Retrieve security passes and all other property of your business, eg tools, uniforms, computers, and company cars.
Organise their final payment including all money owing, eg pay in lieu of working a notice period, money for unused holidays, overtime, and bonus payments. See calculate final pay when a worker leaves.
The person leaving may become a client or may be able to refer business to you. Equally, a disgruntled ex-employee can damage the reputation of your business if they leave on poor terms, eg having identified you as their previous employer and then writing about their experiences as your employee on their social media account. This may be the case where the employee has details on their profile which identifies them as having worked for you. Read Labour Relations Agency advice on social media and the employment relationship.
Organise a farewell gift or party, if appropriate. Acknowledgement of good service appreciated is valuable for maintaining staff morale and the promotion of a positive organisational culture.
Make a point of saying goodbye on the actual day the person leaves and thank them again for all their hard work.
Be careful about references - see when workers leave your employment.
Investigate the reasons staff may have for leaving your business so you can address them and reduce staff turnover.
When employees leave, it is a good idea to arrange an exit interview. You can then use their response to determine whether there are any underlying issues to be addressed.
However, getting employees to reveal the real reason they're leaving can be difficult.
For example, if they say that they have been offered more money by another employer, this doesn't necessarily explain why they started looking for a new job in the first place. It may be that the employee didn't get on with their manager or a team colleague, or that they think they were unfairly overlooked for promotion.
If, during the interview, the employee starts making accusations against a colleague, don't act too hastily. You must ensure there is a fair investigation.
Some useful questions you could ask include:
The employee's answers may be influenced by their need for a reference.
Ideally, someone other than the leaver's manager should try to find out why they're leaving. They may have difficulty telling their manager about problems with their job or department.
You should also look out for reasons that might lead to employees claiming constructive dismissal or discrimination. These wrongs could be corrected before the employee leaves but beware not to suggest any reasons or say anything that could later be used against you. See dismissing employees and how to prevent discrimination and value diversity.
How to find out whether or not an employee means to resign following an argument.
Sometimes an employee may say that they are resigning after an argument with their manager or another colleague. In such situations, they might not really have meant to resign.
If this is the case, it may be risky to act as though the contract has ended because the employee could later claim unfair or constructive dismissal. See dismissing employees.
If an employee seems to have resigned or has walked out after an argument:
You should also be careful not to say things in the heat of the moment that could be misinterpreted as a dismissal.
It is a good idea to train managers in handling conflict. This can help resolve any workplace problems straight away, rather than allowing them to escalate to the point where formal procedures need to be applied. See managing conflict.
Resignations when an employee believes you have breached a fundamental term of their employment contract.
An employee may be entitled to resign if you fundamentally breach a term of their employment contract. This is known as constructive dismissal.
Breaches of contract that may give rise to unfair constructive dismissal claims might include anything that makes it impossible or intolerable for the employee to continue doing the job.
Some examples of breaches of the employment contract include:
For this reason, you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details, see how to change an employee's terms of employment.
If you don't get the employee's agreement, they could raise a grievance with you. When dealing with such a grievance, you should follow a fair and reasonable procedure. Ideally, your procedure should follow the good practice principles set out in the Labour Relations Agency (LRA) code of practice on disciplinary and grievance procedures.
Situations where an employee may and may not be able to claim constructive dismissal following a TUPE transfer.
Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), if a business - or a part of a business - is transferred to another business, in most cases the employees of the old employer will automatically transfer to the new employer on their existing terms and conditions.
However, an employee can't be transferred to a new employer against their will and may object to the transfer before it takes place.
In this case, if they refuse to have their contract transferred to the new employer, the employee is regarded as having resigned with effect from the transfer date. As a result, there is generally:
However, if the transfer results in a significant and unfavourable change to an employee's working conditions - eg their new place of work is in a different more inconvenient location from their old one or there are substantial changes to their role/duties - they could resign and claim unfair constructive dismissal. However, it will ultimately be a matter for the Industrial Tribunal to determine in light of the circumstances of each case.
For more information on business transfers, see responsibilities to employees if you buy or sell a business.
The procedures to follow when an employee retires.
Employees can generally retire when they want to.
To help with your workforce planning, if you don't already do so, you should consider setting up regular individual informal workplace discussions with all employees.
Then, when you are having such discussions with older employees, you may get the opportunity to raise the issue of their future plans, which may include plans to retire.
However, any direct question such as "are you planning to retire in the near future?" is best avoided. If the employee indicates they wish to retire, there is no problem in you talking to them about the date of their retirement and any working arrangements leading up to it.
You can only operate a compulsory retirement age if you can objectively justify it. Justification of direct age discrimination must be based on 'social policy objectives' such as those related to employment policy, the labour market or vocational training. This means that the aims must be of a 'public interest nature' rather than purely individual reasons particular to one employer's situation.
The first thing you would need to do is ask yourself why you need a compulsory retirement age. Set out your reasons clearly on paper.
You should then ask the following questions:
As well as establishing a legitimate aim an employer would also need to demonstrate that the compulsory retirement age is a proportionate means of achieving that aim.
The test of objective justification is not an easy one to pass and it would be necessary to provide evidence if challenged at a tribunal (or under the Labour Relations Agency Arbitration Scheme which can now be used as an alternative forum for resolving disputes); assertions alone would not be enough.
Read further guidance on early retirement.
Read further guidance on working after the State Pension age.
If you do operate a compulsory retirement age that you can objectively justify, you must follow at least the minimum statutory disciplinary and dismissal procedure. This means:
You can also still dismiss an employee of any age on, for example, the grounds of:
Read more on dismissing employees.
Whatever date the employee retires, during the employee's final few weeks of work, you will also need to:
Even though an employee can generally choose when to retire, preparing for retirement may still be a difficult time emotionally for them.
Therefore, you should consider helping them in the run-up to their retirement - see providing support for a retiring employee.
Remember that you may also need to retrieve company property, eg security pass, company car, and laptop computer.
Help your employees receive the appropriate state pension or workplace pension to which they are entitled.
When employees retire, make sure they receive any workplace pension(s) that they are due.
When employees reach their state pension age, they will need to make a claim for the state pension or consider the option to defer it.
Currently, the state pension age for men and women is 66 years old. This will increase to 67 years old between 2026 and 2028. Under current law, the state pension age is due to increase to 68 years old between 2044 and 2046. Following a recent review, the government has announced plans to bring this timetable forward. Proposed changes to the state pension age would increase it to age 68 years old between 2037 and 2039 - it would require approval by Parliament before that proposal is agreed.
]Check your state pension age.
It would be helpful to confirm that they have received a claim pack from The Northern Ireland Pension Centre, which will normally write to invite a claim around four months before a person reaches state pension age. A claim pack will be unavailable prior to the four-month period.
They will not get their state pension automatically and have to claim it. They should get a letter no later than two months before they reach state pension age, telling them what to do. If they have not received an invitation letter, but are within three months of reaching their state pension age, they can still make a claim. State pension can be claimed online, by telephone, or by post. The quickest way to get their state pension is to apply online.
There's a different way to claim state pension from abroad, including the Channel Islands.
If your employee hasn't received a claim pack or wants more information on the state pension, including how to defer it, they should contact The Pension Service. Northern Ireland Pension Centre contact details.
If you run a workplace scheme and your employee is a member of it, write to the trustees or managers of the scheme to let them know their retirement date. The trustees or managers will then:
You will need to provide final earnings and contribution information to the scheme so that there is no delay in processing your employee's retirement from the scheme.
If your scheme is a money purchase arrangement run by a pension provider, eg an insurance company, the employee should be advised that they have the right to buy an annuity from a provider other than the one running the pension scheme. This is an alternative to receiving a pension from your scheme.
The options for money purchase funds and provider duties have changed. Individuals now have flexible options for using their pension pot, in addition to the option to select an annuity. Individuals should be advised that they may be able to transfer to a different provider if your current scheme doesn't offer their preferred option. Even if your scheme offers the option they want, they should always shop around to ensure that they are making the most of their money.
Find free and impartial pension guidance from MoneyHelper's Pension Wise service.
If any employee thinks they may have lost track of an old pension from a previous workplace, they may find it helpful to contact the Pension Tracing Service.
Your employees may also benefit from regulated financial advice. Read MoneyHelper's guidance on choosing a financial adviser and use their retirement adviser directory, or use the Personal Finance Society's tool to find an adviser.
You may wish to consider providing this advice as an employee benefit. An Income Tax exemption is available to cover the first £500 worth of relevant pension advice provided to an employee. For further details see pensions advice provided by an employer: exemption from charge.
How employers can help an employee when they are retiring.
Even though employees can generally choose when to retire, preparing for retirement may still be a difficult time emotionally and financially for them.
There are several ways in which you can help an employee make the transition from employment to retirement, including:
The procedures to follow when an employee retires.
Employees can generally retire when they want to.
To help with your workforce planning, if you don't already do so, you should consider setting up regular individual informal workplace discussions with all employees.
Then, when you are having such discussions with older employees, you may get the opportunity to raise the issue of their future plans, which may include plans to retire.
However, any direct question such as "are you planning to retire in the near future?" is best avoided. If the employee indicates they wish to retire, there is no problem in you talking to them about the date of their retirement and any working arrangements leading up to it.
You can only operate a compulsory retirement age if you can objectively justify it. Justification of direct age discrimination must be based on 'social policy objectives' such as those related to employment policy, the labour market or vocational training. This means that the aims must be of a 'public interest nature' rather than purely individual reasons particular to one employer's situation.
The first thing you would need to do is ask yourself why you need a compulsory retirement age. Set out your reasons clearly on paper.
You should then ask the following questions:
As well as establishing a legitimate aim an employer would also need to demonstrate that the compulsory retirement age is a proportionate means of achieving that aim.
The test of objective justification is not an easy one to pass and it would be necessary to provide evidence if challenged at a tribunal (or under the Labour Relations Agency Arbitration Scheme which can now be used as an alternative forum for resolving disputes); assertions alone would not be enough.
Read further guidance on early retirement.
Read further guidance on working after the State Pension age.
If you do operate a compulsory retirement age that you can objectively justify, you must follow at least the minimum statutory disciplinary and dismissal procedure. This means:
You can also still dismiss an employee of any age on, for example, the grounds of:
Read more on dismissing employees.
Whatever date the employee retires, during the employee's final few weeks of work, you will also need to:
Even though an employee can generally choose when to retire, preparing for retirement may still be a difficult time emotionally for them.
Therefore, you should consider helping them in the run-up to their retirement - see providing support for a retiring employee.
Remember that you may also need to retrieve company property, eg security pass, company car, and laptop computer.
Help your employees receive the appropriate state pension or workplace pension to which they are entitled.
When employees retire, make sure they receive any workplace pension(s) that they are due.
When employees reach their state pension age, they will need to make a claim for the state pension or consider the option to defer it.
Currently, the state pension age for men and women is 66 years old. This will increase to 67 years old between 2026 and 2028. Under current law, the state pension age is due to increase to 68 years old between 2044 and 2046. Following a recent review, the government has announced plans to bring this timetable forward. Proposed changes to the state pension age would increase it to age 68 years old between 2037 and 2039 - it would require approval by Parliament before that proposal is agreed.
]Check your state pension age.
It would be helpful to confirm that they have received a claim pack from The Northern Ireland Pension Centre, which will normally write to invite a claim around four months before a person reaches state pension age. A claim pack will be unavailable prior to the four-month period.
They will not get their state pension automatically and have to claim it. They should get a letter no later than two months before they reach state pension age, telling them what to do. If they have not received an invitation letter, but are within three months of reaching their state pension age, they can still make a claim. State pension can be claimed online, by telephone, or by post. The quickest way to get their state pension is to apply online.
There's a different way to claim state pension from abroad, including the Channel Islands.
If your employee hasn't received a claim pack or wants more information on the state pension, including how to defer it, they should contact The Pension Service. Northern Ireland Pension Centre contact details.
If you run a workplace scheme and your employee is a member of it, write to the trustees or managers of the scheme to let them know their retirement date. The trustees or managers will then:
You will need to provide final earnings and contribution information to the scheme so that there is no delay in processing your employee's retirement from the scheme.
If your scheme is a money purchase arrangement run by a pension provider, eg an insurance company, the employee should be advised that they have the right to buy an annuity from a provider other than the one running the pension scheme. This is an alternative to receiving a pension from your scheme.
The options for money purchase funds and provider duties have changed. Individuals now have flexible options for using their pension pot, in addition to the option to select an annuity. Individuals should be advised that they may be able to transfer to a different provider if your current scheme doesn't offer their preferred option. Even if your scheme offers the option they want, they should always shop around to ensure that they are making the most of their money.
Find free and impartial pension guidance from MoneyHelper's Pension Wise service.
If any employee thinks they may have lost track of an old pension from a previous workplace, they may find it helpful to contact the Pension Tracing Service.
Your employees may also benefit from regulated financial advice. Read MoneyHelper's guidance on choosing a financial adviser and use their retirement adviser directory, or use the Personal Finance Society's tool to find an adviser.
You may wish to consider providing this advice as an employee benefit. An Income Tax exemption is available to cover the first £500 worth of relevant pension advice provided to an employee. For further details see pensions advice provided by an employer: exemption from charge.
How employers can help an employee when they are retiring.
Even though employees can generally choose when to retire, preparing for retirement may still be a difficult time emotionally and financially for them.
There are several ways in which you can help an employee make the transition from employment to retirement, including: