This article explains how to initiate termination or resignation for a PEO Employee, commonly known as "offboarding".

Before you begin:

Please review our article on Mutual Termination Agreements, which is a common practice that enables an employer to terminate an employee while minimizing the risk of litigation.

The termination payout requirements vary for each US state. If the on-demand payroll is caused by a termination in a state where the termination payout deadline is lower than 3 business days, make sure to communicate the termination to Deel at least 72 hours in advance, otherwise it won't be possible to meet the payout deadline.

For detailed information about the payout deadline for every state, see On-Demand Payroll Deadlines for Terminations.

Offboarding a PEO employee

✅ Step 1 – Schedule a termination request

Select the (1) People Icon, the (2) All People tab, and then click the employee who you want to terminate.

From that employee's profile overview page, select the (3) three-dot action menu and click Schedule termination.

✅ Step 2 - Fill in the Termination Details 

Select the termination type (either resignation or termination) and provide a complete explanation of the reason for ending the employment.

Fill out all other details, including your desired end contract date. Please note that your confirmed contract end date may differ from the desired end date due to labor laws and Deel's terms of service.

✅ Step 3 - Add severance agreement details

Select 'the employee will receive severance' only if the employee will receive severance upon termination.

Severance can be provided either in cash value or in time value (hours, days, weeks, or months). 

Please also add any other additional considerations you wish Deel to review and consider when processing the termination request.

✅ Step 4 - Submit request

After filling in the termination details, click on Finish.

Our team will then review the termination request and will notify the client of the next steps.

Once the termination request is approved, the employee’s contract details page will reflect that their contract is ending.

A signed copy of a severance agreement can be uploaded if it has been completed by both parties ahead of the end contract date.

On-Demand Payroll Deadlines for Terminations

[ACCORDION] Expand to see the details…

The deadline to payout the final wage to an employee varies by state and it's determined by whether the employee resigned or was terminated by the company. This table lists such deadlines by state:

[/ACCORDION]