This article is for clients and explains how they can terminate Contractor of Record (COR) contractor agreements on the Deel platform.
In this Article
COR Mutual Termination Agreement
How to terminate a COR
✅ 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.
COR Mutual Termination Agreement
Once the client submits their termination request, Deel will notify the worker via email. The worker will be asked to review the termination details on platform.
If the contract end date does not adhere to the notice period, the worker will have the option to either accept early termination by signing the Mutual Termination Agreement or Reject the early termination of their contract.
If the worker agrees to the early termination date, they will digitally sign the Mutual Termination Agreement via the Deel platform. If they select Reject, the termination will proceed with a revised end date. Deel will automatically set the contract to end on the soonest date that adheres to the notice period. The client and worker will be notified of this change automatically via email. Following this, the termination will proceed as normal.
Frequently Asked Questions
[ACCORDION] Can clients terminate a COR contract before the notice period is over?
A COR contract can only be terminated before the notice period laid out in the contract if the client and worker both agree to the an early termination date.
If the client enters a contract end date that does not honor the agreed upon notice period, the worker will be notified via email. The worker then has the option to accept early termination by signing the Mutual Termination Agreement or to reject early termination.
If the worker rejects early termination, Deel will update the termination to take effect on the soonest date that honors the notice period. Following this, the termination will proceed as normal.
[ACCORDION] Will the contractor be notified of the client's explanation for terminating the COR contract?
No, we will not share the client's required reason for ending the COR contract or the additional explanation provided.
[ACCORDION] What does a calculated amount mean for a final COR contractor payment?
A calculated amount is a final payment that is calculated from the number of working days between the contract end date and the start of the payment cycle.
[ACCORDION] How long do contractors have access to their Deel account after the COR contract is terminated?
After the COR contract is terminated, contractors will retain access to their Deel account indefinitely. Deel user accounts are not tied to employment - they remain available even after a worker's contract, EOR employment relationship, etc have ended. This ensures that users still have access to their work records and important documents (tax information, payslips, invoices, etc).
It's completely free to keep the Deel account, and contractors can continue to use it for future contracts and employment opportunities. It is important that contractors set their account email to a personal address so that they don't lose access to their account after a contract ends. Please reach out to Deel Support anytime for assistance updating the email address on the Deel account.
[ACCORDION] Can clients edit the COR contract termination details after submitting a termination request?
Clients can edit the details of their termination requests up until Deel’s internal payroll team takes action on the request. Once Deel’s payroll team begins processing the request, no further changes can be made.
Go to the employee's Contract Agreement page
Select View Details under Termination Requested
Select Edit to change the details of the request
Make the necessary changes and select Submit to update the termination request.
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