This article covers termination of full-time employees employed through a Deel Employer of Record (EOR). If you are looking for information on terminating an independent contractor, please read our article on how to terminate a contract.
For information about your deposit refund read our article How do I get my EOR deposit refund?
Only the client can submit a termination request on the Deel platform.
There are two types of terminations that can be submitted:
- Resignation: You submit the resignation request on behalf of your employee. This is the easiest method, and you can select the resignation option from the drop-down menu when you begin the termination process.
- Termination: You submit a termination request, including the justification for the termination. The Deel legal team will closely review your request and make a final determination on both the nature of the termination, and the best way to proceed with the termination process. We will take into consideration relevant local laws, regulations, and best practices.
| Note: If the employee is being terminated, please do NOT speak with the employee about the termination process and closely follow all steps below. |
Table of Contents
How to begin the termination process
Important considerations when terminating an employee
What happens if lawyers get involved?
When will I get my deposit back?
How to begin the termination process:
✅ Step 1 – Click Contracts on your dashboard and (2) select the contract you wish to terminate
✅ Step 2 – Select the Contract Details tab
✅ Step 3 – Scroll down to the bottom of the page to the Contract End details and click Request to End Contract
✅ Step 4 – Complete the termination details in the pop-up window.
You will be asked to identify the reason for termination from a drop down menu. You will also be asked to provide a desired contract end date. Please give as much detail as possible!
You must provide justification for the termination. You must keep all supporting evidence that you believe supports the termination, such as emails, messages, and work documents.
You are required to comply with all local laws and regulations throughout the termination process.
✅ Step 5 – We will be in touch with you within a few days to finalize the details or to seek further information or documents.
| Note: 30 days is generally Deel’s minimum notice period for employee terminations. But the notice period may be longer to allow Deel enough time to follow all steps required to lawfully process the termination. |
Here’s a 1-minute video walkthrough:
Important! If you are including any non-mandatory payments to the terminated employee please include this in the pop-up window when prompted. Or, contact us at support@deel.com so we can include it in our invoice process.
The process and timeline of termination depends on the reasons for termination and the jurisdiction of employment.
| Note: Terminating an employee does not terminate the Master Services Agreement (MSA). This will remain in place for any future hires you wish to make. |
Important considerations when terminating an employee
Terminations can be a complex process in employment law and there are some things for you to consider when beginning the termination process:
Notice Period
30 days of notice is generally the minimum time required to ensure that Deel’s in-house legal team can take all formal steps required by law. We may be obligated to provide a notice period even longer than 30 days depending on relevant local labor laws or the specific contract agreement.
We will terminate the employee at the earliest possible date permitted by law. In some cases, this may be less than the 30 days notice described above.
Please remember that the “effective date” is the date that your employment relationship ends with the employee.
Due to compliance reasons, please immediately stop any communication you may have had with the employee regarding their termination.
Because Deel is obligated to comply with relevant law, we will closely observe and follow all formal steps regarding communication and the notice period.
Equipment
Deel probably did not directly provide any equipment to your employees. But, your employees might have bought their own equipment and submitted it to you as an expense reimbursement.
Because Deel didn’t directly grant the equipment, per compliance, we won’t be able to claim it during the termination process. We suggest keeping this in mind as you begin the termination process. We can assist in communicating with the employee regarding equipment.
Costs and Invoicing
Terminations have a price.
These costs include mandatory payments, which are things like severance pay, accrued vacation time, and a prorated salary.
There may be additional payments based on jurisdiction and specific scenarios, which could include legal fees.
If you intend to provide working notice or to include payment in lieu of notice, please include this information when completing your termination request.
If you don’t notify us, our Employee Experience team will assume payment in lieu of notice to be an additional payment that you are providing.
Deel will invoice you in advance for any additional payments to be included upon termination, both mandatory and non-mandatory.
Payment in lieu of notice, working notice, and/or severance may be statutory and you may be required to pay it in certain jurisdictions of employment.
Benefits
In some locations, Deel provides additional benefits on top of the statutory benefits. These additional benefits will have to be terminated as well.
What happens if lawyers get involved?
In certain cases, legal fees might apply during the termination process. The costs may include soliciting outside legal advice or ex gratia payments on top of mandatory payments.
Deel will not make any agreement with the employee or involve external lawyers without informing you first and making you aware of the costs.
Deel will invoice you in advance for any additional payments to be included upon termination, both mandatory and non-mandatory.
When will I get my deposit back after I terminate a full-time employee?
We will return the deposit as soon as we can once the termination is complete and all open invoices have been paid!
Your relationship with the employee ends when they sign either the Deel-issued resignation letter or termination letter.
Your MSA with Deel states that we have 60 days from that date to refund the deposit; but in many cases the deposit will be returned much sooner (often within 30 days).
If you have any questions about the status of your deposit refund, please contact us at support@deel.com