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 terminations, please see Frequently Asked Questions About Terminating Full-Time Employees
In this Article:
When Does Deel Recommend Mutual Termination?
How Does a Mutual Termination Work?
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 Group 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 the client initiates a termination request on the platform, details and supporting documentation related to the request will be required.
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.
The primary point of contact will be the Customer Success Manager (CSM). If no CSM has been assigned, one will be designated to the case to guide through the process, request additional information as needed, and provide updates.
The mutual termination agreement will be prepared by Deel’s legal group in accordance with all local requirements and shared for review and agreement.
Once the agreement is approved, a Deel HR Manager will join the service group to implement the termination process. This includes notifying the employee and seeking their agreement. The service group will continue to provide updates on all steps in the termination process.
Any questions or concerns during this process should be raised with the Customer Success Manager.
Once the employee has signed the termination agreement, Deel will finalize all off-boarding details.