Registering an employee

What it means

Registering an employee means the employer notifying the insurers that an employment or other work relationship subject to contributions has begun. The Social Insurance Agency receives an individual registration form, and the employee’s health insurer a notice of change of payer.

The deadlines are strict. An employee must be registered with the Social Insurance Agency before starting work, meaning no later than the day before. A slightly longer statutory deadline applies to the health insurer. The duty also covers casual workers and people on work agreements.

Deregistration when employment ends is just as important. The employer does it within a statutory period after the end, and the registration and deregistration data feed into the insurance record from which benefits and pensions are later calculated.

How it works in practice

We send clients a simple starter procedure: the signed contract and personal details must reach us no later than the working day before the start so that we can file the registrations electronically. For urgent starts, such as cover for an absence, we handle registration on the morning of the same day.

For student work agreements and pensioners with a contribution exemption, the type of relationship and the exemption must be stated correctly on registration. A wrong registration means the monthly statement and payments will not match, and the insurer will assess a debt.

When employment ends we deregister the employee and at the same time check whether they are moving to a new employer or the labour office, so that their health insurance is not left without a payer. We give the employee the certificates they need for this.

What to watch out for

An employee who works without being registered with the Social Insurance Agency before starting is, in law, illegally employed, even with a signed contract. Fines are high and the company is put on a list that excludes it from grants and public procurement.

Late deregistration is also a problem. The employer then reports contributions for a former employee that it does not pay, and the insurer pursues them. For mass departures we therefore use a checklist so that nobody is forgotten.