When ending an employee's employment under the Employer of Record (EOR) setup, there are important legal and procedural considerations to review before communicating the decision to the employee.
Remote People is the legal employer and is responsible for formally managing employee terminations and resignations in accordance with local labor laws.
Before you start
Before communicating any termination or resignation details to the employee:
Submit the offboarding request through the Remote People platform.
Allow at least 5 working days for Remote People to review the case before the intended termination date.
Do not confirm the termination, resignation, or final employment date with the employee before receiving guidance from Remote People.
The 5-working-day requirement is the minimum advance notice Remote People needs to assess the case. It does not represent the employee's legal termination notice period and does not guarantee that the employment can end within 5 working days.
The actual termination timeline depends on the employee's country, employment contract, reason for termination, and applicable local labor laws.
An offboarding request goes to Remote People for review before employee communication. Allow the stated review lead time and follow the confirmed process; legal notice depends on the country and circumstances.
How do I initiate an offboarding request?
Choose the option that applies to your situation:
One employee: How to Submit an Employee Offboarding Request
Multiple employees: How to Submit a Bulk Offboarding Request
Submitting the request through the platform notifies the Remote People Offboarding Team. The employee is not notified when you submit the request.
Once submitted, a dedicated Offboarding Specialist will review the case and guide you through the next steps.
What happens after you submit a request?
The process may vary depending on the country and circumstances, but generally:
Remote People reviews the request and assesses the proposed termination or resignation.
Remote People confirms the applicable process and timeline, including whether the requested end date is legally feasible.
The required documents are prepared, where applicable.
You communicate with the employee once Remote People confirms that you can proceed and provides guidance.
Remote People manages the formal employment termination with the employee.
Final compensation and required employment documents are processed in accordance with local requirements.
If the proposed termination date is not legally feasible, Remote People will explain the applicable requirements and recommend an alternative date.
Termination types
The appropriate process depends on why the employment is ending.
Mutual termination
A Mutual Termination Agreement (MTA) may be appropriate when both the employer and employee agree to end the employment relationship.
An MTA can be particularly useful where:
There is no legally valid basis for unilateral termination.
A unilateral termination may create a higher risk of legal dispute.
The client and employee prefer to agree on the terms and timing of the separation.
In some countries, mutual termination agreements are subject to specific legal requirements or approval procedures. Remote People will advise you on the applicable process.
A typical MTA process may include:
Remote People prepares the MTA.
Once Remote People confirms that discussions can begin, the client discusses the proposed separation with the employee.
The client discusses the proposed compensation package with the employee.
The employee is given reasonable time to review the proposal.
The parties agree on the proposed final working date and terms, subject to legal requirements.
Remote People prepares the final agreement for signature.
Remote People calculates the final compensation and the client settles the applicable invoice.
The timeline for an MTA varies by country and circumstances and may take several weeks.
Dismissal
A unilateral dismissal may be possible in some countries, but the legal requirements vary significantly.
Before proceeding, Remote People must assess whether the proposed reason for dismissal is legally valid and whether the required procedure has been followed.
Examples of situations that may potentially support dismissal include:
Underperformance
Gross misconduct
Abandonment of duties
However, these grounds are not automatically valid in every country and may require specific documentation, warnings, performance improvement plans, training, or other procedural steps.
For example, an underperformance case may require several months of documented performance management before a dismissal can legally proceed.
Because dismissal can carry a significant risk of legal claims, Remote People will assess the circumstances and advise on the appropriate approach.
Resignation
When an employee voluntarily decides to leave, they must submit an official resignation notice to Remote People or the local Employer of Record named in their employment agreement.
A resignation communicated only to the client does not constitute a formal resignation notice to the legal employer.
A resignation may occur when:
The employee decides to leave their position.
The client wants to transfer the employee to its own entity.
The client wants to move the employee to another provider or employment setup.
Once Remote People receives the resignation:
Remote People acknowledges the resignation.
Remote People calculates the applicable final compensation.
The client settles the applicable final invoice.
Remote People provides any required employment documentation.
The applicable notice period depends on the employee's country and employment circumstances.
Non-renewal of a fixed-term contract
If you do not intend to renew a fixed-term employment contract, plan ahead to ensure that the required notice and other local requirements are met.
As a general Remote People process requirement, at least 30 days' advance notice should be provided for fixed-term contract non-renewal. However, local laws or the employment contract may require a longer period.
Always follow the applicable local requirements.
If insufficient notice is provided, additional service fees or costs may apply, including where a backdated end date is requested.
To initiate the process, submit an offboarding request through the Remote People platform:
Termination reasons in an EOR setup
Because Remote People is the legal employer, the reason for termination must be considered from the perspective of the Remote People employment relationship.
Some business reasons that may apply to the client do not necessarily constitute legally valid grounds for termination by Remote People.
Restructuring or redundancy
A client's internal restructuring or redundancy does not automatically constitute a valid basis for termination by Remote People.
Depending on the circumstances and local law, a Mutual Termination Agreement may need to be considered.
Economic reasons
A client's financial difficulties do not automatically constitute a valid economic reason for termination by Remote People, as Remote People is the legal employer.
Do not communicate the client's internal financial circumstances to the employee as the reason for a Remote People termination unless specifically instructed by Remote People.
Underperformance
Underperformance may support termination in some countries, but specific procedures may need to be followed.
Depending on local law, this may include:
Documenting performance concerns.
Providing formal warnings.
Establishing a Performance Improvement Plan (PIP).
Providing appropriate training or support.
Allowing sufficient time for improvement.
The process can take several months and may carry a risk of legal claims.
Gross misconduct
Gross misconduct may support dismissal in some jurisdictions, but the definition and required procedure vary by country.
Remote People must assess the circumstances and available documentation before confirming whether dismissal is appropriate.
Abandonment of duties
Abandonment of duties may be a valid basis for termination in some countries, but the concept and applicable procedure differ by jurisdiction.
Always consult Remote People before taking action.
Protected employees and special circumstances
Additional legal restrictions or procedures may apply to employees with protected status or particular circumstances.
Examples may include employees who are:
Pregnant or on parental leave.
On sick leave or recovering from an injury.
Covered by other statutory employment protections.
Remote People will assess the employee's circumstances and advise on the appropriate process.
Final compensation and employment documents
When an employment relationship ends, Remote People calculates the employee's final compensation based on the applicable employment contract and local legal requirements.
Depending on the country and circumstances, final compensation may include items such as:
Salary through the final working day.
Accrued but unused leave.
Statutory severance or other termination payments.
Amounts agreed under a Mutual Termination Agreement.
Other legally required payments.
Remote People may also provide an employment certificate or other required termination documentation.
The timing and components of final compensation vary by country.
Litigation and legal claims
Employees retain the right to challenge a termination or bring other employment-related claims where permitted by local law.
Some jurisdictions have a higher risk of employment claims following termination.
If an employee initiates a legal claim:
Remote People, as the legal Employer of Record, coordinates the defense of the case.
The client may choose a lawyer to handle the case, subject to coordination with Remote People.
Alternatively, Remote People may recommend a local law firm from its network.
The client must approve the applicable legal and other costs.
Costs associated with legal disputes, including legal fees, additional payments to the employee, and administrative expenses, are the client's responsibility.
Important things to keep in mind
Always submit the offboarding request through the Remote People platform before communicating termination or resignation details to the employee.
Allow at least 5 working days for Remote People to review a termination or resignation request.
The 5-working-day requirement is a Remote People process requirement and is not the employee's legal termination notice period.
Do not assume that a client's internal business reason is automatically a legally valid termination reason for the EOR.
Local employment laws determine the applicable notice periods, termination grounds, documentation, and other requirements.
Additional protections may apply depending on the employee's circumstances.
Remote People will confirm the legally feasible termination date and applicable process before you proceed.
For fixed-term contract non-renewals, plan ahead and provide at least 30 days' notice, unless a longer period is required.
Legal and other costs resulting from employment disputes are the client's responsibility.
Need help?
If you are considering ending an employee's employment, submit the offboarding request through the Remote People platform before discussing the termination with the employee.
For step-by-step instructions:
Once your request is submitted, a dedicated Remote People Offboarding Specialist will review the case and guide you through the applicable process.