This article explains how clients can terminate or extend an independent contractor (IC) agreement, either immediately or by setting a future date.
How to terminate a contractor agreement
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 – Click Schedule Termination
On the contractor's page, click the three vertical dots in the top right corner, then select Schedule Termination If there is more than one contract, select the one to be terminated.
Step 3 – Choose between ending the contract immediately or selecting a specific date.
Choose if the contract is to end on a specified future date, or terminate immediately.
We will inform the client if the end date is less than the standard notice period for contract terminations.
Step 4 – Select Reason for Ending Contract
The client must select a reason for ending the contract and provide an explanation.
Clients can also specify the termination impact and indicate whether the contractor is eligible for rehire.
The reason for ending the contract and the explanation for the reason above will not be shared with the contractor.
Step 5 – Adjust the final payments
Clients have the option to toggle on the final payment feature.
Clients can modify the monthly payment by selecting Full Amount, Calculated Amount, or Custom Amount to adjust the monthly rate. (See the FAQs for more details.)
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Full Amount
Displays the contractor's fixed monthly rate as the final payment. -
Calculated Amount
Allows clients to adjust the Calculation Type and Work Week used.- To edit, select the pencil icon beside the calculated rate.
- Optional: Toggle Calculation Type between "Working Days" and "Calendar Days."
- Optional: Toggle Working Week between "Monday to Friday" and "Sunday to Thursday."
- Select Update to save changes.
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Custom Amount
Enables clients to define a specific custom amount.
Under Final Payment, clients can select Add Item to include or remove additional items like expenses or bonuses. Clients must specify the adjustment type, amount, and description, and upload a receipt if required.
Note: If the employee has been provided with Company Owned or Deel Leased Equipment, an additional Manage Equipment step will be added to assist clients in initiating equipment return.
Step 6 – Termination letter
Clients have the option to include a termination letter to be sent to the contractor.
They can upload either a signed or unsigned version of the termination letter and set any necessary signature requirements.
If the employee has been provided with Company Owned or Deel Leased Equipment, an additional Manage Equipment step will be added to assist clients in initiating equipment return.
Step 7 - Review and submit
Clients can add any additional information to be shared with the contractor if they want.
Review the details sign and submit.
An email with updates will be shared with the contractor after submission and they will have to review and sign the new termination.
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.
FAQs
[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.