This article explains how Global Payroll clients can initiate terminations or resignations for their direct employees.
The process of termination, commonly referred to as offboarding, is different depending on the employment type.
Offboarding can be managed and reviewed using the Offboarding Tracker.
Before Beginning:
Please review Mutual Termination Agreements, which is a common practice that enables an employer to terminate an employee while minimizing the risk of litigation.
The process of requesting a termination for a Global Payroll direct employee is slightly different if the client does not have enabled Deel HR as their HRIS system.
Clients can terminate workers using an outside HRIS system if it is integrated with Deel. As long as the fields for termination have been mapped, the request will sync and be processed in Deel without the need for secondary validation.
If the client has not mapped or only partially mapped the termination fields, they will be notified that the termination request must be finalized in their Deel account.
In this article:
Terminating a Direct Employee With Deel HR-enabled
Terminating a Direct Employee Without Deel HR
How to Terminate a Direct Employee
✅ Step 1 – Select the employee to be terminated
Select the People icon on the homepage, from the All People tab, and click the employee's name to open the summary page.
✅ Step 2 – Schedule Termination
On the employee's overview page, click Schedule termination to begin the employee offboarding process.
✅ Step 3 - Add termination type and dates
Select one of the following options:
- Resignation – When the worker decides to leave the job voluntarily.
- Termination – When the employer ends the worker’s contract.
Then, select the Last Day of Work and the Desired Contract End Date:
- Last Day of Work: The final day the employee will actively perform their duties. Access is typically removed on this date.
- Contract End Date: The final legal day of employment. The employee will be paid through this date, even if they are no longer working.
Please note that Deel may adjust the requested contract end date after reviewing local labor laws.
In some cases, the client may be responsible for communicating the termination directly to the employee.
If backdating is allowed, clients will be able to view the logic and use the calendar to select a past date, up to the maximum period legally allowed for backdating.
✅ Step 4 – Add termination details
Select if the employee termination is a voluntary resignation, or involuntary.
Clients may add supporting documents if needed.
If the client selects an involuntary termination, they will be asked to provide a reason for the termination.
If the employee being terminated is a manager with direct reports, the client will be prompted to select a new manager for those reports.
✅ Step 5 – Finalize offboarding payments
Clients will see the time off balance for compensation as of the contract end date and must decide how to process the payout for the worker's remaining time off balance.
Clients can also add any additional offboarding payments, either as a Cash Value or Time Value:
- Cash Value: Enter a custom amount for the severance payment, in addition to any mandatory statutory severance.
- Time Value: Add severance based on time, measured in days, weeks, or months.
Note: If the client has Deel Time Off enabled, time off data will sync automatically.
The client can also upload a termination letter if required.
✅ Step 6 – Review and submit the termination request
Deel will review the request details and the desired contract end date.
We may adjust the requested contract end date after an internal review of local labor laws.
When the termination request is confirmed, the client will see a banner on the employee's contract summary page.
For terminations in Spain, employees must sign a Finiquito document in order to be de-registered from social security. Deel will send this document via Payroll Support in the platform. Please check the notifications regularly.
How to Terminate an Employee Without Deel HR
✅ Step 1 – Request termination of employee contract
Select the People icon on the homepage. From the All People tab, click the employee's name to open their summary page. Then, open the contract of the employee to be terminated.
Scroll all the way down to the Contract end section, and click Request Termination.
✅ Step 2 – Fill out the desired termination timeline
Select the dates for the last day of work and the desired contract end date.
- Last day of work: This is the last day that the employee will be performing their job. Usually, their access is removed on this day.
- Desired contract end date: The last legal day of employment. The employee will be paid until this date even if they are no longer performing their job.
Deel may adjust the requested contract end date due after an internal review of local labor laws.
The client personally is responsible for communicating the termination to the direct employee.
✅ Step 3 – Add termination details
Select if the employee termination is a voluntary resignation, or involuntary.
The client may add supporting documents if needed.
If the client selects an involuntary termination, they will be asked to provide a reason for the termination.
✅ Step 4 – Finalize offboarding payments
The client will see the number of vacation days the employee is entitled to annually.
Enter the number of time off days that the employee used for the year, up to the current date.
Clients can also add an additional severance pay, either as a Cash Value or Time Value.
- Cash Value: Enter the desired amount of money for the severance payment, which is in addition to the mandatory statutory severance payment.
- Time Value: Clients can add a time value severance measured in days, weeks, or months.
✅ Step 5 – Review and submit the termination request
Deel will review the request details and the desired contract end date.
We may adjust the requested contract end date after an internal review of payroll regulations.
When the termination request is confirmed, the client will see a banner on the employee's contract summary page.
For terminations in Spain, employees must sign a Finiquito document in order to be de-registered from social security. Deel will send this document via Payroll Support in the platform. Please check the notifications regularly.
Frequently Asked Questions
[ACCORDION] How can I cancel a confirmed termination on the platform?
In applicable countries, clients can cancel a confirmed termination directly from the platform.
Cancelling a termination allows you to:
- Correct any errors made in the original termination request by canceling an approved request
- Raising a new termination with the correct and updated details.
To cancel a confirmed termination please follow these steps:
✅ Step 1 - Go to the People icon on the home screen and Select the Offboarding tab.
✅ Step 2 - Select the applicable employee and Click "Cancel Termination" and confirm the action.
Alternatively, you can also cancel the confirmed termination of an employee by going to their contract details and selecting Manage Termination.
Once cancelled, the worker’s status will return to active.
You can immediately raise a new termination if needed, ensuring all information is accurate.