This article explains the Deel Contractor of Record (COR) service and how it provides clients an extra level of protection against misclassification.
With Deel Contractor of Record (COR), we legally hire contractors on the client’s behalf and assume total liability in the event of misclassification claims.
What is Deel Contractor of Record?
Deel will handle pretty much everything- hiring, compliance, invoicing, and payment of contractors.
With Deel COR, Deel will take on total liability in the event of a misclassification claim.
It's a higher level of protection, but the same great flexibility and level of service for clients and their contractors.
It provides clients with access to a global team without the risk of non-compliance or the hassle of managing HR or administrative tasks.
Deel COR may be the right solution if clients are:
- Considering opening entities in many countries to avoid misclassification risks and need an interim solution.
- Looking for a cost-effective alternative to using an Employee of Record model and prefer to outsource the risk
Please see Frequently Asked Questions about Deel COR for more information.
What are the advantages of Deel COR?
- No misclassification legal risk: Deel is the hiring body, so we’re responsible for the classification of that contractor. Deel is fully liable should any misclassification cases arise.
- Worker classification: Deel uses our global expertise to determine who should be classified as a contractor and who should be an employee, allowing clients to outsource that decision.
- Access to a flexible, global workforce: COR provides the flexibility of hiring global contractors combined with outsourcing the risk of misclassification
Read more in our blog about the benefits of Deel COR!
How to Sign Up for Deel COR?
Most clients will already have the option to create a Deel COR contract in the Add People flow (see step 3).
If the option to enable Deel Contractor of Record is not visible when adding a new Contractor, please follow these steps:
✅ Step 1 - Contact us or request a product demo so we can better understand your hiring goals
Our team of employment experts will review the client's information and decide whether they are eligible for Deel COR. If eligible we will add the Deel COR toggle to the Add People flow.
✅ Step 2 - Check Deel COR eligibility
To be eligible, clients must use the standard Deel contractor agreement with no amendments or changes.
In Singapore, we do not support COR for foreigners. COR is available only for Singaporean citizens and permanent residents.
The contract can not be backdated and in some cases the client may need to answer additional questions during the contract creation flow, to determine COR eligibility.
✅ Step 3 - Start using COR
Clients can toggle on the option to safeguard with Deel COR when initiating a contract.
Additionally, clients can tick the option to enable COR by default for all future contracts.
Upgrading an Existing Independent Contractor to COR
When viewing an eligible IC contract, clients will see an option to upgrade to COR.
✅ Step 1 - Click Upgrade to COR to initiate the process
✅ Step 2 - Complete the eligibility assessment
During the eligibility assessment, clients must pass the same assessment as any new COR contract.
✅ Step 3 - Choose the COR start date
Choose the start date for the new COR contract.
✅ Step 4 - Sign the new COR contract and invite the contractor to sign it
We will prompt you to end the existing contract once the COR contract is fully signed.