Off-boarding employees, whether by resignation or termination, is a complex legal process. Different jurisdictions have different requirements with respect to employee off-boarding. Deel will always comply with local requirements when completing an off-boarding request.
This article is for Clients of Deel who manage remote employees hired through a Deel Employer of Record.
For answers to frequently asked questions about off-boarding please see Frequently Asked Questions about Off-boarding.
In this Article:
What is Mutual Termination?
A mutual termination is a bi-lateral separation agreement negotiated between an employer and an employee. In exchange for payment of a severance or other consideration an employee will usually waive their right to challenge a termination as unfair or unlawful.
Mutual terminations are a common practice in most jurisdictions where it is not permissible or viable to terminate an employee without cause. In jurisdictions where such terminations are possible, a mutual termination agreement may still be advisable to reduce litigation risk.
When does Deel recommend Mutual Termination?
In most jurisdictions the obligations of an employer to their employees are codified in law. These obligations typically preclude an employer from dismissing an employee arbitrarily or unfairly and often include financial obligations in the event of termination.
While in some jurisdictions it is possible to terminate an employee immediately without notice or severance in cases of well-documented gross misconduct, such terminations are frequently a source of litigation. In many jurisdictions such litigation will also expose employers to increased damages and other costs.
Mutual terminations are a common practice that enables an employer to terminate an employee while trying to minimize the risk of litigation. Deel’s Legal Team will recommend a mutual termination agreement when termination with or without cause is not viable, or where such termination may increase the risk of litigation and other costs.
How does a Mutual Termination work?
When you initiate a termination request on the platform, you will be asked to provide details and supporting documentation related to your request.
In situations with high litigation risk or where it is not possible or practicable to terminate an employee with or without cause, Deel will recommend a mutual termination agreement.
Your primary point of contact will be your Customer Success Manager (CSM). If you do not have a CSM, one will be assigned to your case to guide you through the process, request additional information as needed, and provide updates to you.
The mutual termination agreement will be prepared by Deel’s legal team in accordance with all local requirements and shared with you for your review and agreement.
Once the agreement is approved, a Deel HR Manager will join your service team to implement our termination process. This includes notifying the employee and seeking their agreement. Your service team will continue to provide you with updates on all steps in the termination process.
If you have any questions or concerns during this process, please raise them with your Customer Success Manager.
Once the employee has signed the termination agreement, Deel will finalize all off-boarding details.