With the EOR business model, Deel is the legal employer of employees on your behalf.
To ensure we provide the best possible experience for you and your employees, we charge a deposit for each EOR hired.
The deposit is always invoiced and refunded in the currency of the location of the EOR. FX fees will apply if payment and refunds aren't processed in the designated currency.
How are Deposits Calculated?
The standard deposit is between 1 - 1.5 all monthly charges, including employee salary, employer costs, fixed allowances, and management fees.
Amendments to the EOR contract and transferring an EOR also affect how the deposit is calculated.
The deposit amount will be held against your account and refunded once the final invoice is paid when the EOR contract is terminated, or the EOR resigns.
Note: in some countries where there is an increased risk of financial repercussions from terminations, deposit amounts may be higher.
When Would Deel Require A Larger Deposit?
In some circumstances Deel may increase the deposit in order to accommodate certain requests, including contract amendments or as the result of Deel policies.
[ACCORDION]Request to remove the probation
A 2 month deposit is charged for this request. This applies to both monthly and bi-monthly payroll countries.
[ACCORDION]Offering a particular PTO amount above the legal minimum
A 2 month deposit is charged for this request.
[ACCORDION]Increasing notice period beyond 1 month
For this request, each month added will equal an additional month's deposit.
For example: if the notice period is 3 months then the deposit charged will be 3 months.
[ACCORDION]Transferring an EOR with some of their accrued benefits (PTO, seniority, or severance)
A 2 month deposit is charged for this request.
[ACCORDION]Adding an incentive plan or a variable compensation above $100k
For this request, we will review and determine the amount to be paid for the deposit.
Note: for Israel, France and the Netherlands, a deposit for the full amount of the IC and VC is needed.
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Deposit Refunds
We will refund the deposit once EOR resigns or their contract is terminated. For resignations, we require a signed resignation letter from the employee and the final invoice payment.
We do not use the deposit to clear the final invoice and return the difference, therefore, you are required to pay any outstanding invoices including the final invoice before the deposit is refunded.
The final invoice includes:
- Final salary
- Any unused vacation
- Any severance pay the EOR was legally entitled to, or that you wish to pay out
- Any outstanding Deel fees
We will refund the deposit in the same currency as the bank account provided. If the deposit is held in a different currency from the account provided, we will process a currency exchange at the applicable FX rate at the time of the refund. Please ensure you provide a bank account in the same currency as the deposit.
A deposit refund, whether termination or resignation, can take up to 30 business days.
Please also see About EOR Deposit Refunds for more details and frequently asked questions.