This article explains how clients can create a Milestone Contract for independent contractors in a few simple steps. With Milestone contracts, clients can enable contractors to mark a milestone as completed and even add additional milestones.
You can also create Fixed Rate 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 Milestone contract, select Contractor.
When importing a large group of workers, select the Mass Import Workers option.
✅ Step 3 – Select Milestone
Contractors with milestone contracts receive payment as they complete pre-determined project milestones.
Milestone contractors cannot be issued off cycle payments, and there won't be a regular invoice cycle for this contract type.
By default, only the client can initiate payment by completing milestones. Contractors can be allowed to mark milestones complete themselves after the contract is created. Toggle this option from the Organization Settings tab.
✅ Step 4 – Enter personal details
Enter team information, contractor's personal details and workplace information.
If an organization structure is configured by you, then you can also assign the worker an organization structure and configure worker relations while setting up their contract.
✅ Step 5 – Add role details and dates
Enter the Role Details and Scope of Work. Select the currency that will be use for payment and provide details about the milestones.
Create your first milestone by entering the required details. Provide a Milestone Name and a Description.
Optional: Enter an Estimated Due Date for the milestone. Deel will send a reminder email for the contractor to submit their work.
Clients can go to Organization Settings > Contract Settings to adjust how many days in advance of the due date the reminder email will be sent to contractors.
Enter the amount that will be paid after the contractor completes the listed milestone. Attach a file if needed.
Click Add New Milestone to add more milestones.
Specify the worker’s start and end date if the contract is for a set period, and create a notice period.
Clients can also add on-target payments to any contractor contract, which can be issued to the worker at their discretion as either a flat rate or percentage.
Please note that on-target payments must be manually added to the payroll when it is due. Workers may be entitled to some, or all, of this bonus compensation solely at the client's discretion.
Click Continue when finished.
✅ Step 6 – Upload Contract
Clients can choose to:
- Upload a pre-signed contract,
- Use Deel's locally compliant standard contract,
- Select an existing custom template, or
- Create a new template.
Opt in to require that the contractor upload standard identification and compliance documents, as per their local labor laws.
✅ Step 7 – Add benefits and extras
Once benefits and extras have been added, click Continue to create the contract.
✅ Step 8 – Confirm details and sign the contract
Congratulations! The milestone 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 ti.
- 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.
Note: The contract will only be activated when both parties have accepted.
How to Delete a Milestone
After creating a milestone contract, clients can edit and delete milestones on the worker's contract.
✅ Step 1 – Open the Milestone Contract
Select the People icon. Select the name of the contractor to access their profile.
Select View Agreement for the milestone contract.
✅ Step 2 – Locate and Delete the Milestone
Scroll down to the Milestone section. Locate the milestone and select the Trash Bin icon to initiate removal.
Click to confirm and delete the milestone.
Important Notes:
- Unpaid Milestones: Ensure that the milestone being deleted has not been paid or is not in the process of being paid. Paid or processing milestones cannot be deleted.
- Sync with External Systems: If the client is using an external project management tool that syncs with Deel via API, ensure that the milestone is also deleted or updated in that system to avoid discrepancies!
FAQ
[ACCORDION] Who confirms that a milestone has been completed?
When a Milestone contract is active, contractors can be allowed to mark a milestone as completed or even add additional milestones themselves.
This option means clients won't have to approve each milestone achievement manually.
Select the Organization Settings tab and then View on the Contract Settings card. Toggle on these options in the Milestone Contract Settings section.