A contractor is a person who is self-employed and works with clients on a project basis. Clients can create three different types of contractor contracts on Deel:

Fixed Rate - The contractor receives consistent payments for ongoing work.
Pay As You Go - Payment is based on tasks completed, hours worked, or days worked.
Milestone - Payment is released based on the completion of specific deliverables or goals.

This article explains how clients can create those contracts and the requirements for each of them.

Creating a Contractor Contract

If you are importing a large number of contractors onto Deel, you can use our Bulk Upload feature.

Step 1 – Select Add People

From the homepage, select the People icon, and from the People tab, click Add People.

Step 2 – Select worker type

Select the Contractor option.

Step 3 - Choose how you want to start the contract

When creating a contract, you can choose to either start from a blank template and build the contract from scratch or use a pre-filled template based on an existing contract and simply complete the personal information.

When using a template, you’ll still be able to go through all the steps and review the information.

Step 4 - Add the worker details

You’ll be asked to choose the group and entity, and enter the worker’s details, such as name, email, country of residence, and more. You can also add any supplementary information if needed.

Step 5 - Select the agreement type

Select the agreement type and provide additional agreement information.

Step 6 - Add role details

For convenience, when filling out the Scope of Work, clients can select either an Existing Scope of Work or a New Scope of Work, where Deel AI can be used to generate the new one.

Step 7 - Add compensation information

Choose how you would like to set up the agreement.

Fixed Rate

The contractor receives consistent payments for ongoing work.

Define the payment rate, payment currency, and payment frequency: weekly, bi-weekly, semi-monthly, or monthly.
Configure contract dates and payments, such as the contract start and end dates, notice period, and first payment date.
Additionally, you can add on-target payments and set withholding taxes.

Pay As You Go

Payment is based on tasks completed, hours worked, or days worked.

Choose whether the payment rate is per task or recurring.
Select the payment currency and payment frequency: hourly, daily, weekly, or per task, as well as the invoicing preference.
Configure contract dates and payment details, such as the contract start and end dates and the notice period.
Add recurring payments: For PAYG contracts, clients can add recurring items and create as many as needed. These items are paid every cycle, even if no work is submitted. They appear on the Payments, Expenses, and Work Submissions pages, and clients can be deleted at any time during the contract lifecycle.
Additionally, you can add on-target payments and set withholding taxes.

Optional reminder emails
Deel can send an email to the contractor reminding them to submit their work a set number of days before the end of each billing cycle. Clients can toggle this option on or off, or adjust how close to the end of the cycle the reminder is sent, under Organization Settings > Contract Settings.

Milestone

Payment is released based on the completion of specific deliverables or goals.

Payment is released based on the completion of specific deliverables or goals.
Select the payment currency.
Configure contract dates and payment details, such as the contract start and end dates and the notice period.
Add milestones; these can also be added and managed later from the Payments, Expenses & Work Submissions tab.
Additionally, you can add on-target payments.

Step 8 - Add coverage and extras

Clients can choose between full misclassification coverage by Deel or coverage up to $25,000, and can add benefits and extras such as background checks, health insurance, and more.

Step 9 - Review and sign the contract

Note: To make contracts require approval before signing, first set up an approval policy following this guide. Then, go to Org Settings > Contract Settings > Signatures & Approvals and toggle on Creating a contract needs to be approved. This ensures all new contracts follow the approval process.

Review the contract details, then click Review and Sign. Next, invite the contractor to sign as well.

The following options will be available:

Preview and download the contract PDF before signing it.
Include a personalized message with the invitation or copy the Deel contract link and share it with the contractor directly.
Click Switch Signing Order to have the contractor sign first.
Add an extra layer of misclassification protection by adding Deel COR to the contract.

The contract will only be activated when both parties have accepted.

Multiple Signatures in Contract Creation

Deel allows clients the option to create contracts that require multiple signatories, which can be enabled through the Contract Settings in Organization Settings. This feature is particularly useful for enterprise clients who require more than one signatory on employment-related contracts.

How It Works:

Multiple Signatures Toggle: Admins can enable or disable the "multiple signatures" option for each contract, with a maximum of 5 signers.
Signatory Workflow: The signing process is sequential. Signers are invited to sign one after another (e.g., Signer 1 completes their signing before Signer 2 is invited).
Editing Signers: Clients can edit or remove signers who have not yet signed, change the order of signers, or nominate themselves as a signer.
Contract PDF & Task Tracking: The contract PDF will show the names of all signers, and tasks will be created for each signer when they are invited.

Important Notes:

The multiple signature feature is available in two modes: mandatory or optional.

If using the mandatory option, the contract cannot proceed unless all required signatories have signed in sequence.
If multiple signatures are optional, clients can still proceed with a single signer if preferred.

Enable Pay Ahead Of the Weekend

When setting up your contract, clients can customize invoice settings and enable the Pay ahead of the weekend feature. This ensures that any payments scheduled for the weekend are processed on Friday instead. Check out the article on How to Pay Your Contractor Before the Weekend to learn more.