What happens to your employees when you move them to a different EOR?

Summary

Their employment with the old provider ends and a new one begins with the next. Remote's help center says employees moving to another EOR "need to submit a resignation request on the Remote platform," and the date they can leave depends on the payroll cutoff in their country. Money you left with the old provider comes back on its own schedule: at Deel, the deposit returns within 60 days after the termination is complete and invoices are paid, and a severance accrual is refunded in full when the employee resigns.

The old provider sees a resignation

Remote's article on transfers is a single sentence, and it treats a move to another EOR the same way as a move to your own entity: the employee resigns. The employee starts it, not you. They open a resignation request, sign a letter the platform generates, and the customer reviews the details before Remote looks it over and advises on next steps.

Timing is not open-ended. "The proposed resignation date will depend on the payroll cutoff for your country," Remote says, because the cutoff leaves time to process the resignation. The country dates are in SeatBill's piece on payroll funding and cutoffs.

Money you get back, and when

If you are leaving Deel, two balances matter.

• The deposit. Deel says a termination "can take up to 60 days depending on the nature and jurisdiction of the termination," and refunds arrive "within 60 days after the termination process is completed and all invoices are paid." Anything netted against the final invoice is gone from the refund.
• The severance accrual. In countries where Deel bills monthly toward future severance, "in the event of a resignation, the amount of severance that has been accrued will be refunded to the client."

Leaving Remote, there is usually less to wait for. Its pricing page says it collects reserve payments only "in rare, high risk circumstances" and does not charge monthly severance accruals.

The month both providers bill

Remote's guidance on moving someone between its own entities shows how monthly fees behave at a handover. The resignation date should be the day before the new start date, and the employee should resign on the last day of one month and restart on the first of the next: "If these dates overlap within the same month, you will be charged twice." Across two different providers the arithmetic is the same, since each bills its monthly fee for the month it employs the person.

Deel's pricing lets you cancel at any time, month to month, but its FAQ adds the part that doesn't go away: "For EOR employees, local labor laws will apply."

Sources

• https://support.remote.com/hc/en-us/articles/9538310352781-How-do-I-transfer-an-employee-in-house-or-to-another-EOR
• https://support.remote.com/hc/en-us/articles/4406932251021-How-do-I-resign-from-my-position
• https://help.letsdeel.com/hc/en-gb/articles/4419482456721-About-EOR-Deposit-Refunds
• https://help.letsdeel.com/hc/en-gb/articles/12080901688593-About-Severance-Payment-Accrual-for-EOR-Employees
• https://remote.com/pricing
• https://support.remote.com/hc/en-us/articles/26871222438925-How-does-employee-transfer-from-one-entity-to-another-work
• https://www.deel.com/pricing/

Related on this site

• If you already have a local entity, what does an EOR give you that payroll doesn't?
• Beyond the monthly fee, what do you pay when an EOR employee leaves?
• When does an EOR need the payroll money, and what happens to a bonus approved after the cutoff?
• Is an EOR your data processor, or a controller in its own right?
• If someone you hire through an EOR invents something, does your company own it?