This article is for clients and explains how they can transition a contract.
A contract transition occurs when clients change an independent contractor (IC) contract to an employer of record (EOR) contract, provided the job scope is suitable for such a change.
How to Initiate a Contract Transition
✅ Step 1 - Select the Contract to be transitioned
From the homepage, select the People icon, followed by the All People tab, and click on the contractor’s name. Next, select Transition a Contract.
If the contractor has more than one active contract, select the ones to be transitioned to EOR.
✅ Step 2 - Start the Transition
Click Next to begin transitioning the IC to EOR. Please note that if the contractor has any equipment that cannot be transitioned, clients will need to collect the equipment and update the contract before proceeding with the transition.
✅ Step 3 - Provide the Contract Information
Clients will be asked to provide:
- Employee’s personal details – This information will be pre-filled using data from the existing contract. Please review and ensure it's correct.
- Job details – Some information here will also be pre-filled. Please review it and confirm its accuracy.
- Compensation and dates – The ability to transition a contract will depend on the job scope and compensation.
- Benefits and extras – Any existing benefits associated with the worker will be carried over to the new contract unless otherwise requested.
After all is added and confirmed, click Generate Quote.
The new contract details will be reviewed and follow-up will be provided within 24 hours.
✅ Step 4 - Quote acceptance
Clients will need to review and accept the scope of work. Additionally, they will have the option to sign the EOR MSA if required.
Workers transitioning from an existing contract will be required to complete the EOR onboarding process.
✅ Step 5 - Complete transition
Once all details are provided by the employee and agreements signed, click Complete Transition from the worker's contract overview.
✅ Step 6 - Terminate the old contract
To complete the transition and start the new EOR contract, the previous IC contract must be terminated. Clients will be asked to select an end date, adjust the final payment, and account for any extras or equipment.
The end date cannot extend beyond the start of the new EOR contract.
For COR, the termination date must be exactly one day before the new contract start date.
The final payment invoice will be generated in the final payment cycle