This article explains how clients can terminate independent contractor (IC) agreements, either immediately or by setting a future 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 – Open the Contract to be terminated
Select View Contract to open the contract.
✅ Step 3 – Select Set End Date on the contract
Scroll down to the End Contract Section on the right. Select Set End Date to initiate contract termination.
✅ Step 4 – Set the Ending Type and End 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 5 – Select Reason for Ending Contract
The client must select a reason for ending the contract and provide a detailed explanation.
Note: The Reason for Ending the Contract and Explanation for the Reason Above will not be shared with the contractor. If clients want to include an explanatory note that will be shared with the worker, a message can be written in the secondary Additional Details box.
Optional: Enter any Additional Details to be included. Click to Browse, or Drag & Drop to attach Additional Documents.
✅ Step 6 – Adjust final payments
Clients can edit the monthly payment to add a Full Amount, Calculated Amount, or a Custom Amount to the monthly rate. (See the FAQs for more details.)
Select a Fixed Rate Amount
Any changes made to the Fixed Rate Amount selection will immediately update the Final Payment amounts in the section below.
If clients have selected Calculated Amount, they can adjust the Calculation Type and Work Week used in the calculation.
Select the Pencil Icon to Edit the Calculated Rate
Optional: Toggle the Calculation Type between "Working Days" and "Calendar Days".
Optional: Toggle the Working Week between "Monday to Friday" and "Sunday to Thursday"
Select Update to save changes. Select Cancel to return to Final Payment Adjustments.
Under Final Payment, clients can select Add Item to add or remove extra items like expenses or bonuses. Clients must select the type of adjustment, the amount, description, and upload a receipt if needed.
Click Next to continue.
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 7 – Review summary and Submit
Review the end of the contract date and payment details. Click Submit to continue.
Note: An email with updates will be shared with the contractor after submission.
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 honour 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] Will the contractor be notified of the explanation for terminating the contract?
No, we will not share the client's mandatory reason for ending the contract or the additional explanation provided.
If clients want to include an explanatory note that will be shared with the worker, they can write this message in the Additional Details section.
[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 are able to 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. Please reach out to Deel support anytime for assistance updating the email address on the Deel account.
[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.
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