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 – Add worker details
Select the Add People tab on your home page.
Enter worker details like full name and personal email.
✅ Step 2 – Select worker type
To create a Fixed Rate contract, select Contractor and then click Next.
If you are importing a large group of workers, you can click the Mass Import option.
✅ Step 3 – Select Fixed Rate
A fixed rate contract is a contract where you and the client agree to a predetermined base rate for work, which recurs each pay cycle.
✅ Step 4 – Enter contract details
Choose the Group and Entity, and fill out details like the contractor's tax residence and job title.
You can use one of our saved prompts for scope of work if useful.
After you fill 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.
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Every week - select a day when the payment is due weekly
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Every two weeks - select a day when the payment is due every other week
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Every month - select the last day of the month or any other specific date as the payment due date.
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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, you can toggle the option to pay on Friday instead.
You can also add variable compensation to any contractor contract, which can be issued to the worker at your 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 your discretion.
Click Next
✅ Step 6 – Add 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, you can select:
- Full Amount: Contractor will receive full weekly amount for first payment, regardless of start date.
- Custom Amount: Contractor will receive customized amount you enter for the first payment.
- Calculated Amount: First payment is calculated from the number of working/calendar days between start date and the start of the payment cycle. You can select working days or calendar days as the calculation type.
A notice period can be created where either party can terminate the contract after the designated notice period, and you can also choose a date to terminate the contract.
✅ Step 7 – Add further details
You can choose a termination date. This means that you will pay the contractor after each milestone is completed, until the contract has been terminated.
A notice period can be created where either party can terminate the contract after the designated notice period.
You can also establish a Stock options offer.
Add any additional documents that you want to include in the contract, and you can even add a special clause to outline terms of a unique scenario.
✅ Step 8 – Upload Contract
You can upload your own pre-signed contract, or use Deel's standard contract that is locally compliant.
You can choose to require that the contractor upload standard identification and compliance documents, as per their local labor laws.
Click Create Contract.
✅ Step 9 – Confirm details and sign contract
Congratulations! The Fixed Rate contract has been created.
Review the contract details then click Review & Sign. You can then invite the contractor to sign, as well.
You can also add an extra layer of misclassification protection by adding Deel Shield to the contract.
You can preview and download the contract PDF before signing.
You can include a personalized message with your invitation. Alternatively, you can copy the Deel contract link and share it with the contractor directly.
You can click Switch Signing Order to have the contractor sign first.
The contract will only be activated when both parties have signed.