What Happens When a Remote Company Ends Your Contract?

What happens next depends almost entirely on how you were hired. A contractor paid through Deel or Remote has different protections from an employee on a Nigerian employer-of-record (EOR) payroll. Both differ again from an Upwork freelancer or someone on a US company's books.

This guide explains each situation from the worker's side. It covers notice periods and pay in lieu, how to make sure your final payment arrives, what to do with the company laptop and your accounts, and when it is realistic to challenge the decision. It ends with a checklist for your first week after the termination email lands.

Quick answer

When a remote company ends your contract, you normally stop work at once and lose system access. You can still claim payment for completed work, any notice or pay in lieu your contract (or, for EOR employees in Nigeria, the Labour Act) provides, and unused leave if you were an employee. Severance is usually contractual, not automatic. Read your contract's termination clause, send your final invoice quickly and keep copies of everything.

What usually happens in the first 24 hours

Most remote terminations follow the same pattern, whichever country the company is in.

• A call or an email. Some managers book a short video call. Many companies just send an email, sometimes through their HR or EOR platform. If you are in Lagos and your manager is in New York, it may arrive late at night your time: US Eastern is 5 hours behind Lagos in summer and 6 hours behind from 1 November 2026.
• Access is cut. Slack, Google Workspace or Microsoft 365, the ticketing tool and your company email often stop working during or just after the call. That is standard security practice, not a sign that something shady is going on.
• A formal notice. On contractor platforms this may be called a "stop work order". On Remote's contractor-of-record service, for example, the contractor gets an email and in-platform message telling them to stop all work immediately (Remote help centre, checked October 2026).
• Offboarding instructions. These cover returning equipment, your final invoice or payslip, and sometimes a separation agreement to sign.

Read everything before you reply, and download anything you can still reach that belongs to you: your contract, payslips, invoices and any performance reviews. Do not take company data. Personal records of your own pay are a different matter.

It depends on how you were hired

Your rights at termination come from three places: your written contract, the law that governs it, and the rules of any platform or EOR in the middle. If you are not sure which arrangement you are on, our guide to whether you are a contractor or an EOR employee explains how to tell.

Independent contractor hired directly

If a foreign company pays you by invoice and you signed a "services agreement" or "consultancy agreement", you are a contractor. Nigerian employment law protections for employees generally will not apply to you. The termination clause in your agreement decides almost everything.

Look for four things in that clause:

• Notice length. Common clauses say "either party may terminate with 14 days' written notice" or "30 days". Some say "immediately, for any reason".
• Payment in lieu. Whether the company can pay you for the notice period instead of letting you work it.
• Termination for cause. What counts as a breach, and whether you get a chance to fix it (a "cure period") before they can end the contract.
• What survives. Confidentiality, intellectual property and non-solicitation clauses usually continue after the contract ends.

If the company ends a direct contract without the notice it agreed to, it may be in breach. Whether you can do anything about that is a separate, practical question, covered further down.

Contractor paid through a platform such as Deel or Remote

Many foreign companies hire Nigerian contractors through a "contractor management" or "contractor of record" service. The platform handles the contract and payments, but the company decides to end the engagement.

Remote publishes its own process (as of October 2026). The company terminates from its dashboard. You receive a stop work order. You then have 21 calendar days to submit one final invoice for completed work, or to waive it. If the company rejects the invoice, you can resubmit within the same window. If nothing is submitted in 21 days, the window closes and the engagement is deactivated (Remote help centre).

The practical lesson is that you should invoice for every day or hour worked up to the stop date, straight away. Other platforms run their own processes and deadlines, so check your platform's help centre the day you are told.

Employee hired through an employer of record in Nigeria

An employer of record is a company that legally employs you in Nigeria on behalf of the foreign business. It runs Nigerian payroll, PAYE and pension deductions. Because you are a Nigerian employee on paper, Nigerian law applies alongside your contract.

This is the arrangement with the most protection. The details are covered in the notice section below. In short:

• You are entitled to notice, or payment instead of notice.
• Your contract can give you more notice than the legal minimum.
• Employees are generally entitled to payment for unused annual leave when employment ends (Remote, Nigeria employment termination, checked October 2026).

The foreign company still makes the decision. The EOR carries out the paperwork, the final payroll and the exit documents.

Freelancer on Upwork, Fiverr or a similar marketplace

On a freelance marketplace, the platform's terms set what happens when a client ends a contract. Payment protection typically depends on how the work was recorded: time logged through the platform's own tracker on hourly contracts, or funded milestones on fixed-price contracts. Work done outside those systems is much harder to recover.

We could not open Upwork's or Fiverr's help pages while researching this article, so check the current dispute and payment-protection rules directly in your platform's help centre. Respond to any dispute notice quickly, because platforms set short deadlines.

Direct employee of a US company

Most Nigeria-based workers are not on a US payroll, but a few are, particularly people who used to live in the US. In 49 US states, employment is presumed to be "at will". That means the employer can end it at any time, for any reason that is not unlawful (such as discrimination or retaliation). An express or implied agreement can change this. Montana is the exception: there, employers generally need good cause once probation is over (Cornell Law School, Legal Information Institute).

In practice, if a US company employs you and you live in Nigeria, your written contract matters far more than US law. Read it before assuming you have, or lack, any rights.

Notice periods and pay in lieu: what you are owed

Notice is the time between being told your contract is ending and the actual end date. You can be asked to work through it, told to stay home on full pay ("garden leave"), or paid for it in a lump sum ("payment in lieu of notice"). Our planned guide to notice periods in remote employment contracts goes further. Here is what matters on termination day.

The Labour Act minimums

The Nigerian Labour Act sets minimum notice based on length of service. According to Deloitte's international employment law guide for Nigeria (checked October 2026):

There is a catch that many articles skip. Deloitte notes that these statutory periods apply to manual and clerical workers. Employees in administrative, technical, executive or professional roles are governed by their contracts. Many remote roles (software engineer, accountant, marketing manager) fall into that second group, so for many readers the contract's notice clause is what counts. Either party can end employment by paying in lieu of notice. For non-worker employees, the contract must allow it.

None of this applies to independent contractors. Their notice comes from the services agreement alone.

Is Nigeria "at will"?

Sources disagree, and you should know that. Remote's country guide describes Nigeria as one of a few "at-will" countries, where employers need not give a reason, though they usually must give notice (Remote). Deloitte says Nigerian courts require a valid reason connected to the employee's capacity, conduct or the operational needs of the business. Without one, the employee may claim wrongful dismissal (Deloitte).

The safe reading for an EOR employee is this: notice (or pay in lieu) is required, and a termination with no reason at all may be open to challenge at the National Industrial Court. If the amount at stake matters to you, a Nigerian employment lawyer can tell you how the courts currently treat cases like yours.

Summary dismissal

Dismissal without notice is allowed for gross misconduct, but Deloitte notes that the employee must first be given a chance to be heard. If you were dismissed "for cause" with no hearing or explanation, keep every message and ask in writing for the specific reason.

Example (hypothetical): working out notice pay

Tolu is a contractor paid $2,000 a month by a UK company through a contractor platform. Her contract says either side may end it with 30 days' written notice. On 10 November the company ends it with immediate effect and does not mention notice.

• Pay for 1 to 10 November (10 of 30 days): about $667.
• Thirty days' notice in lieu, if the contract requires it: $2,000.
• Total to claim: about $2,667, roughly ₦3,632,000 at ₦1,362 to $1 (CBN NFEM weighted average, 23 October 2026).

If her contract had said "either party may terminate immediately", she would be owed only the $667 for work done. That is why the termination clause is the first thing to read.

Severance: do you get a payout?

Usually not, unless your contract says so. Remote states that Nigerian law does not mandate severance pay, though contracts or collective agreements can require it (Remote). Deloitte notes one statutory exception: in a redundancy (job losses because there are too many staff), the Labour Act requires the employer to use its best endeavours to negotiate redundancy payments for affected workers.

Contractors almost never get severance. Some foreign companies offer a few weeks' extra pay as goodwill, often in exchange for signing a separation agreement.

Should you sign a separation agreement?

A separation agreement (also called a settlement or release) usually offers a payment in return for you giving up the right to bring claims later. Before signing:

• Check that the amount covers everything you are already owed, and that the "extra" is genuinely extra.
• Look for confidentiality and non-disparagement clauses, and any non-compete.
• Ask for a few days to review it. A reasonable company will agree.
• Get advice if the sum is significant or you think you were treated unfairly.

Your final payment: what to check

Final payments go wrong more often than anything else in a remote termination. Use this list.

A few points that are specific to Nigeria:

• Currency. Confirm whether the final payment comes in dollars, pounds or naira, and to which account. EOR employees are often paid in naira, while contractors usually get dollars through Payoneer, Wise, Deel or a local dollar account. See how to receive dollar payments in Nigeria for withdrawal options and fees.
• Timing. Ask for a payment date in writing. Platforms run on fixed cycles, so a final invoice may not be paid until the next run.
• Do not close accounts early. Keep your Payoneer, Wise or domiciliary account open until the final payment has landed and been withdrawn.
• Pension. If an EOR deducted pension contributions, check your Retirement Savings Account statement with your Pension Fund Administrator to confirm the final months were remitted, and ask the PFA what applies to you while you are between jobs.

Our planned guide to payment terms in international remote contracts explains invoicing cycles and late-payment clauses in more detail.

The laptop, your accounts and company data

Company equipment

If the company sent you a laptop, headset or monitor, you will usually be asked to return it. Ask three questions in writing:

1. Who pays for shipping from Nigeria? A courier from Lagos to the US or Europe can be expensive, and most companies send a prepaid label or arrange collection.
2. What is the deadline?
3. Will the company deduct anything from your final pay if the equipment is not returned? If it can, the contract should say so.

Get a receipt or tracking number for anything you send. If the company says you may keep the device, get that in writing too.

Personal data on work devices

Before returning a device, remove personal files, browser profiles and saved passwords for your own accounts, such as your bank, email and WhatsApp Web. Do not wipe the device unless the company tells you to, because some companies want devices returned untouched for their records.

Company data and continuing obligations

Your confidentiality and intellectual property obligations do not end with the contract. Do not keep client lists, code repositories or internal documents. You may keep your own payslips, invoices, contract and performance feedback. Code or designs you made for the company usually belong to the company, so check the contract before putting them in a portfolio.

Can you challenge the decision?

Sometimes, but be realistic about cost and bargaining power. Start with a polite written request. Most payment problems are solved at this stage.

If you are an EOR employee in Nigeria

Your legal employer is a Nigerian entity, so the National Industrial Court of Nigeria (the court that handles labour disputes) is the main forum, and your contract may also set out arbitration or mediation. This is the most practical route open to Nigeria-based remote workers, because the EOR has a local presence.

If you are a contractor

Check the "governing law" and "dispute resolution" clauses. Many say disputes go to courts in England, Delaware or wherever the company sits. Suing a foreign company over a few thousand dollars is rarely worth it. Your realistic options are usually:

• A written demand that sets out what the contract requires and the amount owed.
• Escalating through the payment platform, if one was used.
• Escalating to someone senior at the company, such as the head of HR or finance.

If you were on a marketplace

Use the platform's dispute process and meet its deadlines. Do not agree to move the dispute off-platform.

Example (hypothetical): a final payment request email

Subject: Final payment following termination of my contract

Hi Sarah,

Thank you for letting me know on 10 November that my contract is ending. To close things properly, please confirm the following:

1. Payment for work from 1 to 10 November ($667), which I have invoiced today. 2. Payment in lieu of the 30 days' notice in clause 9.2 of my agreement ($2,000). 3. The date and method of payment. 4. Shipping arrangements for the company laptop.

I'm happy to help with any handover. Thank you for the past year.

Kind regards, Tolu

The email is calm and specific: it quotes the clause and states the amounts. That makes it hard to ignore, and you can forward it to a lawyer later if you need to.

What to do in your first week

1. Read your contract's termination, notice, leave and governing-law clauses. Do this before replying to anything.
2. Save your records. That means your contract, payslips, invoices, offer letter, performance feedback and the termination message itself.
3. Submit your final invoice or timesheet. Do it the same day if you can, especially where a platform sets a deadline.
4. Send a written confirmation request like the example above.
5. Arrange the equipment return and keep proof.
6. Ask for a reference or confirmation of employment. A short letter confirming your dates and role helps with future applications. Ask your manager for a LinkedIn recommendation while goodwill is high.
7. Check your tax position. A foreign contract ending mid-year changes your income for the year. Our guide to tax for remote workers in Nigeria explains what to keep track of, and the planned guide on organising your tax records covers the paperwork.
8. Restart your job search. You may already have useful experience to show, even if the exit was abrupt.

Nigeria-specific things to think about

Money between contracts

Dollar income can stop overnight, and naira bills do not. If you have savings in a domiciliary account or dollar wallet, decide early how many months they will cover, and convert only what you need rather than everything at once. Contract income from abroad is irregular by nature, so a buffer of several months' expenses is worth building as soon as you start your next role.

Explaining the exit to the next employer

Remote companies end contracts for reasons that have nothing to do with the worker: funding rounds fail, clients cancel, teams are cut. You can say exactly that: "The company restructured and my contract ended." If you need help framing a gap, see our planned guide on explaining employment gaps.

Keep your setup ready

Interviews for the next role may come quickly. Keep your inverter or solar backup, your two internet options (for example a MiFi plus a phone hotspot) and your interview space ready, even while you are between contracts.

When a "termination" is really a scam

Some scams start after a real or fake job ends. Be wary if:

• Someone claiming to be from the company or an "arbitration agency" asks you to pay a fee to release your final pay or reinstate your contract.
• You are asked to move from the platform to WhatsApp or Telegram to "resolve" a dispute.
• A "new employer" contacts you right after the termination, offering a role if you pay for training or equipment.
• You are asked for your BVN, card details or bank login to "process" a final payment.

A legitimate company never needs you to pay to receive money it owes you. Our guide to spotting remote job scams in Nigeria covers the warning signs in more detail.

Frequently asked questions

Can a foreign remote company end my contract without notice?

Yes, if your contract allows it, and many contractor agreements do. If your contract requires notice, ending it without notice or pay in lieu may be a breach. EOR employees in Nigeria are entitled to notice or pay in lieu under their contract, with the Labour Act minimums applying to manual and clerical workers.

Do Nigerian remote workers get severance pay?

Usually only if the contract or a collective agreement promises it. Nigerian law does not generally require severance, though the Labour Act requires employers to try to negotiate redundancy payments for affected workers. Contractors very rarely receive severance.

How long do I have to send my final invoice after termination?

It depends on the platform or contract. On Remote's contractor-of-record service, contractors have 21 calendar days to submit or waive a final invoice (as of October 2026). Other platforms differ, so check the day you are told, and invoice as soon as possible.

Will I be paid for unused annual leave?

If you were an employee through an EOR in Nigeria, you are generally entitled to payment for unused leave when employment ends. Contractors get leave pay only if their agreement provides it, which is uncommon.

Do I have to return the company laptop?

Usually yes, if the company owns it. Ask in writing who pays for shipping, what the deadline is and whether any deduction applies. Keep the tracking number. If you are told to keep the device, get that in writing.

Can I take a foreign company to court from Nigeria?

EOR employees can usually bring claims against the Nigerian EOR entity at the National Industrial Court of Nigeria. Contractors are bound by their contract's governing-law clause, which often points to a foreign court. That makes legal action costly, so a firm written demand is usually the better first step.

Does a terminated contract affect my tax in Nigeria?

It changes your income for the year, and you still need records of what you earned while the contract ran. Keep every invoice, payslip and payment confirmation. Our tax guide explains how remote income is treated under the Nigeria Tax Act 2025.

Key takeaways

• What you are owed depends on how you were hired: direct contractor, platform contractor, EOR employee, marketplace freelancer or overseas employee.
• Your contract's termination clause is the first thing to read. For contractors it is almost the only thing that counts.
• The Labour Act notice minimums (1 day to 1 month by length of service) apply to manual and clerical workers. Professional roles depend more on the contract.
• Severance is usually contractual, not automatic. Unused leave is generally payable to EOR employees.
• Submit your final invoice quickly, because platforms such as Remote set deadlines (21 days for its contractor-of-record service as of October 2026).
• Put every request in writing, keep proof of equipment returns, and never pay anyone to release money you are owed.

Next steps

Once your final payment is sorted, start the next search while your experience is fresh. Browse current remote jobs open to applicants in Nigeria: each listing shows the company, its website and where applicants may live. After a search, you can turn on free email updates to get new matching roles each day. Before you sign your next offer, read our planned guide on what to check in a remote work contract before signing, so you know what the termination clause says from day one.

Sources

• How Contractor of Record Terminations Work, Remote help centre
• Nigeria: employment termination, Remote country explorer
• International employment law guide: Nigeria, Deloitte
• At-will employment, Cornell Law School Legal Information Institute