This article explains how clients can create a Fixed Rate Contract for independent contractors in a few simple steps.
You can also create Milestone or Pay As You Go contracts for contractors.
If you are importing a large number of contractors onto Deel, you can use our Mass Import feature.
✅ Step 1 – Select Add People
From the homepage, select the People icon, and from the All People tab, click Add People.
✅ Step 2 – Select worker type
To create a Fixed Rate contract, select Contractor.
When importing a large group of workers, select the Mass Import Workers option.
✅ Step 3 – Select Fixed Rate
A fixed-rate contract is a contract where the worker and the client agree to a predetermined base rate for work, which recurs each pay cycle.
✅ Step 4 – Enter the contract details
Choose the Group and Entity, and fill out details like the contractor's tax residence and job title.
If organization structures are configured by you, then you can also assign the worker an organization structure and configure worker relations while setting up their contract.
For convenience, we've provided saved prompts that you can use to auto-fill your scope of work. Select an option from the drop-down menu.
After filling out all required general information click Next
✅ Step 5 – Define Payment Rate
Select the payment currency and the payment frequency: Weekly, bi-weekly, semi-monthly, or monthly.
- Every week - select a day when the payment is due weekly
- Every two weeks - select a day when the payment is due every other week
- Every month - select the last day of the month or any other specific date as the payment due date.
- Twice per month - select the 15th and the last day of the month or two specific dates as payment due dates.
Choose when the invoice cycle will end, and the payment due date.
If the payment due date is on a weekend, clients can toggle the option to pay on Friday instead.
Clients can also add variable compensation to any contractor contract, which can be issued to the worker at the client's discretion as either a flat rate or percentage.
Please note that variable compensation must be manually added to payroll when it is due. Workers may be entitled to some, or all, of this bonus compensation solely at the client's discretion.
Click Next
✅ Step 6 – Add the first payment date
Choose the date when the contractor will receive their first payment, and how the first payment amount will be calculated.
For the first payment, select:
- Full Amount: The contractor will receive a full weekly amount for the first payment, regardless of the start date.
- Custom Amount: The contractor will receive the customized amount entered for the first payment.
- Calculated Amount: The first payment is calculated from the number of working/calendar days between the start date and the start of the payment cycle. Select working days or calendar days as the calculation type.
A termination date for the contract may also be selected. This means that the contractor will be paid after each milestone is completed until the contract has been terminated.
A notice period can be created here as well, allowing either party to terminate the contract after the designated notice period.
✅ Step 7 – Add Benefits and Extras
Additional benefits and extras, such as equipment, health insurance, co-working space memberships, equity options, background checks, and more, can be included in the contract.
Click Continue to create the contract.
✅ Step 8 – Review and sign the contract
Congratulations! The Fixed Rate contract has been created.
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.
Note: The contract will only be activated when both parties have accepted.