What should an employer do if an employee indicates that they wish to retire?
An employee's decision to retire is in effect a resignation. There is no set procedure for an employer to follow if an employee indicates that they wish to retire, but it should consider holding a meeting with the employee to discuss, for example, plans for a handover to a successor and the possibility of a phased retirement. The employee should not be put under pressure to change their hours or alter their responsibilities in preparation for retirement, but the employer can agree to this if it is the employee's choice. The employer should provide the employee with details of their pension, if relevant, and advise them to consider taking independent financial advice.
The employer should inform the employee of the requirement to give notice of the decision in writing, when they have decided on a retirement date. When the employee gives notice, the employer should confirm in writing the employee's final date of employment and any other relevant arrangements, for example final payments and the return of company property.