Clients can migrate employees from one Global Payroll entity to another quickly and easily in Deel. The process has been simplified and allows clients to retain important details like banking information and compliance documents when they are still applicable.
In this article:
Migrate an Employee to Different Entity
Best Practices for Entity Transfer
FAQs
Migrate an Employee to a Different Entity
✅ Step 1 – Open the Contract
Select the People icon. Select an employee's name from the All People tab to access their record.
Select View Contract to open the contract.
✅ Step 2 – Scroll down to Legal Entity Details and select the Edit icon
✅ Step 3 – Enter Transfer Details
Select a Country to begin specifying the entity that the employee will be moved to.
After selecting the Country, relevant locality, and Team, select the Entity.
Only entities located in the country and locality selected will be available in the dropdown menu.
✅ Step 4 – Set the Contract Start Date
A new contract under the employee's new entity will be created to replace the existing contract. Set the Contract Start Date for when the entity change will occur.
✅ Step 5 – Review Entity Transfer Details. Select Transfer Employee
Scroll down to review and edit the employee Address, Compensation, Job Information, and Time Off. The changes made here will be applied to the new contract generated under the employee's new entity.
Select Transfer Employee to submit the changes.
✅ Step 6 – Select to Terminate Previous Contract
After selecting Transfer Employee, clients will see the pop-up below confirming the move was successful.
A new contract under the employee's new entity was created when the entity transfer was completed.
Select Terminate Contract to officially end the employee's previous contract.
Best Practices for Entity Transfer
Deel recommends the following best practices when transferring an employee to a different entity:
- Submit Entity Transfers ahead of the next Payroll Submission cut off date
- When terminating the previous contract, the employee’s Desired Contract End Date should match the Last Day of Work
- As part of the entity transfer process, select the type of termination as Voluntary, and include a note in the Additional Details section stating the employee is transferring to another entity
Please refer to this article for more information on completing Termination related Best Practices: How To Begin The Termination Process And Offboard A Global Payroll Direct Employee
FAQs
[ACCORDION] Do clients need to terminate the employee's contract before transferring them to a different entity?
No, clients won't need to terminate the contract before transferring the employee to another entity. After the entity transfer is complete, they will have the option to terminate the previous contract.
[ACCORDION] Do clients need to create a completely new contract to transfer an employee from one entity to another?
Clients won't need to manually create a new contract under the employee's new entity to transfer an employee to a different entity. The data from existing contracts will be available for review when clients select to change an employee's entity. If details of the contract are not changing, clients may leave them as they are, or opt to edit fields such as Country & Address, Compensation, Job Information, and Paid Time off (Vacation Days).
Once the entity transfer is complete, clients will have the option to terminate the previous contract so only the new contract under the new entity will be active.
[ACCORDION] Can clients move an employee to a different country when transferring entities?
Yes, clients can change the country on the employee's contract as a part of the entity transfer process, but it must match the country of the new entity that they are moving to. The system will limit the country options available based on the entity location selected under Transfer Details.
New entity's location is US:
As a result, employee's new address is restricted to US:
Note: When moving an employee to an entity in a different country, clients will be required to enter an updated address for the employee. When are moving an employee to an entity in the same country, editing the employee's address is optional.
[ACCORDION] Does an employee need to re-submit compliance documents when transferring to a different entity?
All signed compliance documents from the previous contract that are still applicable will transfer over to the new contract under the employee's new entity. Documents that are not applicable to the new contract will not be copied.
Note: If the employee is being transferred to a different county, there may be additional documents for the employee to fill that were not required before. The employee contract will be under "Onboarding" status until outstanding documents are complete. Employees will be prompted to complete these items in the Deel app in order to complete onboarding under the new entity and contract.
[ACCORDION] Will an employee need to re-submit their bank details after they are transferred to a different entity?
The banking details for the employee will be copied over into the new contract under their new entity. The employee will not be required to re-submit this information in order to change entities.
If the banking details need to be updated, the employee can edit them at any time via their employee app.
Note: If the client changes the employee's country, they may be required to provide additional compliance documentation related to banking such as a bank statement. This will vary based on country requirements.