This article explains how clients can terminate or extend an independent contractor (IC) agreement, either immediately or by setting a future date.
In this Article
How to terminate a contractor agreement
How to extend an agreement's end date
How to terminate a contractor agreement
✅ 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.
How to extend an agreement's end date
Step 1 – Select contractor
Select the People icon on the homepage and in the All People tab, select the contractor to be terminated.
Step 2 - In the Contract card, click View Contract
Step 3 - Edit end date
Scroll down to the End of contract card.
If no end date has yet been specified, click the button Set end date. If you wish to extend the end date, click the button to edit the end date.
If there is more than one contract, select the one to be extended.
The new end date should be after the current one.
Please note, that if you follow this flow you will not be able amend the termination notice period.
Alternatively, you can click the Edit Contract button in the top-right corner, scroll down to End of Contract section, and edit the end date and notice period.
Step 4 - Adjust the final payment
This process is the same as the one shared above for when terminating the contract.
Step 5 - Submit the extension for approval by the contractor
Clients can choose whether to require an agreement signature and may add any additional details to share with the contractor.
The contractor will be notified of the extension and will have to review it and accept it or not.
How to cancel a scheduled contractor termination
If a contractor agreement end date (or termination) has already been scheduled and you wish to cancel, you can s
On the contractor's page, click the three vertical dots in the top right corner, then select Remove Termination. Review the information in the pop-up box and then click Confirm Termination.
Current agreements/contracts with an end date set up as part of this termination process will keep its end date until changed from the contract page.
Frequently Asked Questions
[ACCORDION] Can clients terminate a contract before the standard notice period is over?
Yes, clients can, but this is not considered best practice in the client-contractor professional relationship.
The notice period is written out in the contractor agreement and clients may be considered in breach of contract if they do not honor a written notice period.
However, it is still possible to perform this action on the Deel platform. If the client opts to terminate a contract early, we recommend that they inform any affected workers directly to avoid confusion. Deel does not handle work dispute resolution.
Clients can include an explanatory note in the Additional Details section of the termination flow that will be shared with the worker.
[ACCORDION] What does a calculated amount mean for a final 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] Can a contractor terminate their own contract on Deel without client approval?
The default setting on Deel is that Independent Contractors can terminate their own contracts on the Deel platform if they wish.
However, clients can turn off / disable that ability for contractors to terminate their own agreements via a toggle in Org Settings.
[ACCORDION] How long do contractors have access to their Deel account after the contract is terminated?
After the 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.
[ACCORDION] Can clients edit the contract termination details after submitting a termination request?
Clients can edit the details of their termination requests up until the request begins processing. Following this, no further changes can be made.
To edit the termination request:
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.