A contract transition occurs when clients change an independent contractor (IC) contract to an employer of record (EOR) contract or Direct Employee Global Payroll.

How to Transition a Contractor to EOR

An EOR employee is legally employed by the EOR organization (Deel), which acts as the official employer. The EOR handles all legal, compliance, and administrative aspects of the employment relationship on behalf of the client company.

✅ 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 to open up their profile overview page.

Next, select the three-dot actions menu and choose Change Worker Type.

If the contractor has more than one active contract, please check you are selecting the correct agreement to transition into an EOR employment contract

✅ Step 2 - Start the Transition

Select the worker type EOR Employee and click Next to begin the change. 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 worker type change from the worker's contract overview.

✅ Step 6 - Terminate the old contract

To complete the transition to the new EOR contract, the existing IC contract must first be terminated. Clients will be prompted to select an end date, adjust the final payment, and account for any additional expenses or equipment. This process can begin once the worker has signed the new EOR contract.

Note

The end date cannot be extended 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.

How to Transition a Contractor to Global Payroll

A Global Payroll employee, also known as a Direct Employee - Payroll is an employee hired and paid through Deel's Global Payroll service. These employees are employed directly by the company utilizing this service.

Note

To transition an independent contractor to Global Payroll, the client must have an entity with Global Payroll activated.

✅ Step 1 - Select the Contract to be transitioned

Select the People icon from the homepage, followed by the All People tab, and click on the contractor’s name. Next, click on the three vertical dots and select Change Worker Type.

If the contractor has more than one active contract, select the ones to be transitioned.

✅ Step 2 - Start the Transition

Select the worker type Direct Employee Payroll and click Next to begin transitioning.

Please keep in mind 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 Contractor’s 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 – Will have to be filled with the required information.
• Compensation and dates – Also have been pre-filled with information from the previous contract, but they can be edited.
• Benefits and extras – Any existing benefits associated with the worker will be carried over to the new contract unless otherwise requested.

Note

For a transition to Global Payroll, the employee must be invited to the Employee App. Ensure that the Invite Employee to the Employee App option is checked.

By clicking Continue, the worker type change will be initiated, and the worker will be notified to complete the necessary onboarding steps, which include signing the contractor release agreement. Signing this agreement is a critical step in transitioning from contractor to employee.

✅ Step 4 - Set an end date for the contract

Once the employee has signed the agreement, the client can complete the worker type change via the worker's profile by clicking Complete worker type change and setting an end date to the contract.