Starting or leaving employment (P45)

Employee retirement or transfer

Employee retirement

Retiring on an employer-paid pension

An employer might have one registration number for both employees and pensioners. If so an employee who retires on a pension paid by the employer should not be treated as having left employment. A P45 should not be completed in this case.

The pension should be included on the Pay As You Earn (PAYE) and Pay Related Social Insurance (PRSI) record. This should be done as though it represented continuation of pay, and deduction or refund of tax should continue in the normal way. See also the PRSI guide regarding change of contribution class.

The employee might retire at an age when they may be entitled to make a claim for Jobseeker’s Benefit from the Department of Employment Affairs and Social Protection (DEASP). Such a claim is normally initiated by giving a P45 (Parts 2, 3 and 4) to the employee's local Social Welfare office.

In these circumstances the employer should give the retiring employee a letter setting out the facts of the situation. This letter should include the same information that would be entered on a P45. The employee should then give this letter to their local Social Welfare office.

Retiring on an employer-paid pension and dealt with under a separate registration number or paid by a separate body (trust fund or life assurance company)

A P45 should be completed in the ordinary way on cessation of employment. However, a convenient practice can be adopted whereby Parts 2, 3 and 4 of the P45 are given directly to the pension-paying employer.

The retiring employee could be entitled to social insurance benefit in circumstances similar to those set out above. If so the employer should give the retiring employee a letter setting out the facts of the situation.

Employee transfer

An employee might be transferred from one branch to another. Each branch might also be treated as a separate operating point with a unique registered number for PAYE or PRSI. If so the employer must complete a P45 for each transfer.