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.
In this article:
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.
How to Terminate a Direct Employee
✅ Step 1 – Select the employee to be terminated
Select the People Icon, and from the All People tab click on the employee who you want to terminate.
From that employee's profile overview page, select the three-dot action menu and click Schedule termination.
Clients must choose whether the offboarding is an employee resignation or a termination.
We won’t communicate with the employee until the termination details are finalized.
Please do not notify the employee until we have confirmed the termination request details.
✅ Step 2 – End the worker’s contract or profile in a way that fits your business needs
Select one of the available options:
End Contract Only – Ends the contract but keeps the worker’s profile active. The worker remains visible in the org chart and People list.
Terminate Worker and Contract – Ends both the contract and removes the worker completely from the organization.
Change Worker Type – Transitions the worker to a new worker type (e.g., contractor → employee). Deel will guide you through this process.
✅ Step 3 - Add termination details
Add termination details
Enter the following information:
- Last Day of Work – The final day the employee actively performs duties. Access is removed on this date.
- Time Zone.
- Termination Impact.
- Eligibility for Rehire.
Tip: If unsure about the last day of work, check with Deel Payroll or Legal for compliance requirements.
✅ Step 4 - Transfer responsibilities
After scheduling the termination, review the Responsibility Transfer step.
If the worker manages other employees, reassign their direct reports to ensure workflows continue without disruption.
Choose one of the following options:
Assign a new direct manager.
Assign a transition lead temporarily.
Reassign each direct report individually.
Then click Continue.
⚠️ Note: Reassigning responsibilities immediately prevents issues with time off approvals, expense approvals, and other workflows.
✅ Step 5 - Complete contract ending process
You can now finalize the termination so both the profile and contract are correctly closed.
On the confirmation screen, click Initiate Contract Ending. (This step is mandatory if you chose to terminate both profile and contract.)
Review the Last Day of Work and contract end 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.
You can now complete the contract termination form:
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Enter final payroll details such as
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Time-Off Balance Payout
Deel automatically syncs balances if Deel Time Off is enabled.
Clients can skip at this stage and update balances later during final payroll.
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Additional Offboarding Payments
Cash Value: Enter a custom severance amount, in addition to statutory severance.
Time Value: Add severance based on days, weeks, or months.
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Post-Termination Payouts
Click Add under Post-termination Payout to schedule recurring or one-time payments after the contract ends.
Payments can later be edited or deleted under the worker’s agreement page.
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Termination Letter
Clients may upload a termination letter, if required.
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✅ 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.
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.