When and why is a deposit required?



Modified on: Thu, 16 Apr, 2026 at 7:40 PM

A deposit is required to cover employment-related costs such as salaries, statutory contributions, and any potential termination-related expenses.

This ensures continuity of payroll and compliance with local employment regulations.


Deposit Refund

Any unused portion of the deposit is refunded in accordance with our Terms & Conditions:

“Any unused portion of the Deposit will automatically be refunded to the Client within 30 calendar days following the last payment to the applicable Professional(s), as long as all matters and invoices related to the termination of the Professional(s) have fully been settled.”


When Does the 30-Day Refund Period Start?

It is important to note:

❗ The 30-day refund period does not start from the employee’s last working day.

The 30-day countdown begins only when both of the following conditions are met:

  • The final payment has been made to the employee, and
  • Payroll is fully completed and confirmed, meaning final payroll actuals have been processed and validated in the platform

Only once these two steps are completed does the 30-day refund period begin.


Why This Matters

This distinction is important because payroll timelines vary significantly by country and situation.

The employee’s last working day and the final payroll/payment date are often not the same, which directly impacts when the deposit can be refunded.


What Impacts the Refund Timeline?

The timing of the refund depends on several factors, including:

  • Local payroll schedules
  • Statutory post-termination payments (e.g., severance, unused leave)
  • Variable compensation (e.g., bonuses, commissions)
  • Timing of final payroll processing and validation


Examples

1. Countries with End-of-Month Payroll

In many countries, employees are paid at the end of the month—even if they leave earlier.

  • If an employee leaves early in the month:
    • Final salary is typically paid at month-end
    • Payroll is confirmed shortly after

The 30-day period starts after this final payroll is completed, not from the last working day.


2. Countries with Additional Payroll After Termination (e.g., Italy)

Some countries require an additional payroll cycle after termination, which may include:

  • Severance payments (e.g., TFR)
  • Payment of unused leave
  • Other statutory components

In these cases:

  • Final payments may occur one month or more after termination
  • Payroll is only considered complete after this cycle

The 30-day period starts after this final payroll cycle is processed


3. Bonuses or Commissions Paid After Termination

If an employee is entitled to variable compensation paid after termination:

  • Bonuses
  • Sales commissions
  • Other deferred compensation

Then:

  • The final payment occurs when these amounts are paid
  • The 30-day countdown starts from that payment date

This may extend the refund timeline by several months depending on payout schedules.


Key Takeaway

To avoid misunderstandings:

  • The 30-day refund period does not start from the employee’s last working day
  • It starts only after the final payroll payment is made and all payroll and termination-related matters are fully settled
  • Because payroll timing varies by country and situation, the actual refund date will differ case by case

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