How Contractor of Record Terminations Work

The Contractor of Record (CoR) Terminations feature allows you to end engagements with your contractors through the Remote platform. This guide explains how to terminate a contractor engagement, what happens during the process, how to cancel an in-progress termination, and what you can expect at each step.

When Can You Use This Feature?

You can terminate a contractor engagement when:

• You have the Company admin and Onboarding Manager permission
• The contractor is currently active in your organization
• You're logged in as a customer (not available for Remote Admin accounts)

How to Terminate an Engagement

1. Navigate to your contractor's profile page
   
2. Click the "Terminate engagement" button in the right-hand sidebar
3. Review and confirm the termination in the pop-up window
   
4. Track the progress - you'll see a "Termination is in progress" banner on the contractor's profile

How does the termination process work?

When you terminate a contractor engagement, the process follows three main phases:

1. Initiation

When you start the termination:

• A termination request is created in the system
• Your contractor receives a Stop Work Order instructing them to immediately cease all work
• Your contractor is notified via email and in-platform messages
  

2. Final Invoice Period (21 Days)

Your contractor has 21 calendar days to submit their final invoice:

• The engagement stays active during this period to allow for invoicing
• Your contractor can submit one final invoice for all completed work
  
• Your contractor may choose to waive their final invoice
  
• If you reject a final invoice, your contractor can resubmit within the 21-day window

3. Complete Deactivation

The engagement is fully terminated when:

• You've approved and paid the final invoice, OR
• Contractor has waved the final invoice submission, OR
• The 21-day window ends and all approved invoices are paid

How do I cancel a termination in progress?

If you've initiated a termination by mistake or circumstances have changed, you can cancel it as long as the engagement hasn't been fully deactivated.

Who can cancel: Company Admins can cancel terminations for their own contractors. Remote Admins can also cancel terminations on behalf of customers when needed.

Where to cancel from: You can cancel an in-progress termination from either:

• The contractor's profile page,or
• The Team page.

What happens when you cancel:

• The contractor's engagement returns to active status.
• The Stop Work Order is lifted, and the contractor can resume submitting invoices normally.
• Any future-dated invoice schedules that were cancelled as part of the termination will need to be re-created if still needed.

Important: Your contractor will have already received emails and in-platform notifications about the termination and Stop Work Order. We recommend reaching out to them directly after cancelling to confirm the engagement is continuing and avoid any confusion.

Service Fees for Terminated Engagements

You'll be charged the standard CoR service fee for the full month in which the termination is completed (not prorated).

Example:

• You initiate termination on July 25th
• The termination completes on August 8th
• You'll pay the full service fee for both July and August

What Happens Next?

After you initiate the termination:

• Your contractor will immediately receive notification to stop work
• You'll have up to 21 days to review and approve any final invoices
• Once all invoices are settled or the 21-day period ends, the engagement will be permanently deactivated
• You'll continue to have access to all historical records and invoices for your records

Need help? Contact our support team if you have questions about terminating a contractor engagement.

FAQ

Can I terminate a contractor who already has an active Stop Work Order (SWO)?

Yes, you can initiate a termination even if the contractor has an active SWO for other reasons. The 21-day final invoice window will start from the date you initiate the termination, not from when the original SWO was issued.

What happens if the contractor already submitted a final invoice under an existing SWO?

If the contractor has already submitted their final invoice under an existing SWO and you've approved it, they won't be able to submit another invoice during the termination process.

What if the contractor doesn't submit their final invoice within the 21-day deadline?

If the contractor doesn't submit or waive their final invoice within the 21-day period, the invoice submission window will automatically close and the termination will proceed to the deactivation phase.

How do I handle contractors who haven't completed onboarding yet?

For contractors who haven't fully completed onboarding, use the "Cancel Onboarding" process instead of initiating a formal termination.

Can I cancel a termination after I've initiated it?

No, once you initiate a termination request, it's considered final and cannot be cancelled through the user interface. If you need to cancel an in-progress termination, you'll need to contact the Contractor Support or Contractor Engineering Support team for manual intervention.

Can I terminate a contractor if they have invoices pending Remote's approval?

No, you cannot initiate termination while there are contractor invoices awaiting Remote approval. You'll receive an error message if you try to do so.