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.

Scheduling a Termination Request

✅ Step 1 – Select the employee you want to terminate

Go to the People tab on your Homepage and select the employee.

From the employee’s profile or contract details page, select Schedule Termination.

✅ Step 2 - Fill in the Termination Details 

 In the contract ending page, Select the Ending type, add the reason for termination, and select the desired end date. 

✅ Step 3 - Click on Request

After filling in the termination details, click on Request.

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.

On-Demand Payroll Deadlines for Terminations

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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:

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