Terminating or Laying Off an EOR Employee: What to Know
Sometimes an employment relationship doesn't work out. That's okay. Here's how the process works when Thera is your Employer of Record.
Thera leads the termination:
When you use Thera's EOR service, Thera is the legal employer of the employee. That means terminations have to be initiated and communicated by us, not by you directly. If you believe you may need to let someone go, your first step is to contact your Customer Success representative.
The first formal communication to the employee must come from Thera. We'll align with you on the message, timing, and next steps before anything goes out, which keeps the process legally sound and avoids creating liability for your company.
Why you can't just terminate at-will
Most countries don't allow at-will termination the way the U.S. does. Depending on the country, employees are typically entitled to one or more of the following:
A statutory notice period
Pay in lieu of notice
Severance based on tenure and termination reason
Documented performance history or a formal improvement plan
The exact requirements shift based on local law, the employee's tenure, and the reason for termination. What's standard in one country may be illegal in another, which is why involving Thera early is essential.
Notify us as early as possible
Late notice almost always increases cost and risk. The moment termination becomes a real possibility, even before you've made a final decision, loop in your Customer Success representative. Early notice gives us time to:
Review country-specific requirements
Flag any elevated risks, such as protected classes or active leave
Plan the notice period, final pay, and severance correctly
Coordinate timing so nothing catches the employee or you off guard
Waiting until the day you want the termination to happen usually means a rushed process, higher costs, and greater legal exposure.
What to do next
If you're considering terminating or laying off an EOR employee, reach out to your Customer Success representative at Thera. We'll walk you through the country-specific process, handle the formal communication with the employee, and make sure every step meets local legal standards.
Not sure if it's the right time to move forward? We're happy to talk it through. The earlier we're involved, the more options you have.