This article explains the Deel Contractor of Record (COR) service and how it provides clients an extra level protection against misclassification.
With Deel Contractor of Record (COR), we can legally hire contractors on the client's behalf and assume total liability in the event of misclassification claims.
What is Deel Contractor of Record?
Deel Contractor of Record allows Deel to hire contractors on the client's behalf.
Deel will handle pretty much everything- hiring, compliance, invoicing, and payment of contractors.
With Deel (COR), Deel will take on total liability in the event of a misclassification claim.
It's a higher level of protection, but the same great flexibility and level of service for clients and their contractors.
It provides clients with access to a global team without the risk of non-compliance or the hassle of managing HR or administrative tasks.
Deel COR may be the right solution when:
- Considering opening entities in many countries to avoid misclassification risks but will need an interim solution.
- Looking for a cost-effective alternative to using an Employee of Record model and prefer to outsource the risk
What are the advantages of Deel COR?
- No misclassification legal risk for clients: Deel is the hiring body, so we’re responsible for the classification of that contractor. Deel is fully liable should any misclassification cases arise.
- Worker classification: Deel uses our global expertise to determine who should be classified as a contractor and who should be an employee, allowing clients to outsource that decision.
- Access to a flexible, global workforce: COR provides the flexibility of hiring global contractors combined with outsourcing the risk of misclassification
Read more in our blog about the benefits of Deel COR or contact us to request a product demo so we can better understand the client's hiring goals. Our team of employment experts will review this information and decide whether they are eligible for Deel COR.
How To Create A Deel COR Contract
✅ Step 1 – Sign up for Deel COR
Clients may see an information banner about Deel COR on their home page. Click Learn More to see general details and pricing information for COR.
Clients must have a signed Master Service Agreement (MSA) with Deel in order to add COR coverage to their contracts. Click Get Started on the pop up to start creating a Master Services Agreement.
✅ Step 2 – Create and Review MSA
Choose the entity and the effective date. Then click Accept.
Next, under Signature Status, clients may sign the MSA themselves or select to Invite a Team Member to Sign on their behalf as a delegate.
[ACCORDION] Invite a Team Member to Sign
Enter the delegate's name and email address (required) and optionally include a message.
For added security, clients also also opt to check in the box to Require SMS Authentication before the delegate can access the MSA and sign.
Select Continue. After reviewing the delegate invitation details, select Send Invite.
The delegate will receive an email to review & sign on behalf of the contract creator.
[/ACCORDION]
✅ Step 3 – Review and Accept MSA
After the client accepts the MSA, Deel will review and countersign.
✅ Step 4 – Create a Deel COR contract
Now that the MSA has been signed, clients can create contractor agreements with Deel COR enabled.
The Master Service Agreement can always be reviewed under Organization Settings.
✅ Step 5 – Enable Deel COR on a new contract
Toggle on the option to enable Deel COR.
The management fee and the refundable deposit for the contract will be displayed on screen
Entities that have COR protection will say covered.