The Employee Severance Agreement is a crucial document used when formally terminating employment relationships in Indonesia. It is designed to comply with Indonesian labor laws, particularly the Job Creation Law (Omnibus Law) and Government Regulation No. 35/2021, which set strict requirements for employment termination and severance calculations. This agreement is necessary whenever an employment relationship is terminated by mutual consent or under circumstances requiring statutory severance payments. It encompasses mandatory elements such as severance pay, service pay, and compensation rights, while also addressing post-employment obligations and releases. The document serves as both a legal requirement and a protection mechanism for employers and employees, ensuring that termination processes follow Indonesian regulatory requirements and that all statutory entitlements are properly documented and agreed upon.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train 蜜桃传媒's AI
You keep IP ownership聽of your docs
Alternatively...
1. Parties: Identification of the employer and employee, including complete legal names and addresses
2. Background: Context of the employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement, including statutory terms from Indonesian labor laws
4. Termination Date: Specific date of employment termination and last working day
5. Severance Payment: Calculation and breakdown of severance pay according to Indonesian regulations
6. Service Pay: Calculation of service/appreciation pay based on years of service
7. Compensation Rights: Other statutory payments including unused leave, transportation, and housing allowances
8. Payment Terms: Timeline and method of severance payment disbursement
9. Tax Treatment: Tax implications and responsibilities for severance payments
10. Final Settlements: Settlement of outstanding claims, expenses, and company property
11. Confidentiality: Ongoing obligations regarding confidential information
12. Release of Claims: Mutual release of employment-related claims
13. Governing Law: Confirmation of Indonesian law application and jurisdiction
14. Execution: Signature blocks and execution requirements
1. Non-Competition: Restrictions on working for competitors, used for senior positions or when handling sensitive information
2. Non-Solicitation: Restrictions on soliciting employees or customers, typically for management positions
3. Outplacement Support: Details of any career transition services offered, common for senior positions
4. Reference Letter: Terms regarding the provision of employment references
5. Medical Benefits Extension: Continuation of medical benefits, if applicable
6. Stock Options/Share Rights: Treatment of any outstanding equity compensation
7. Resignation from Offices: Required for employees who held director or officer positions
8. Dispute Resolution: Specific procedures for resolving disputes, including mediation requirements
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation according to Indonesian labor law
2. Schedule B - Outstanding Benefits: List of accrued benefits and allowances to be paid
3. Schedule C - Company Property: Inventory of company property to be returned
4. Schedule D - Release Declaration: Detailed release of claims form in Indonesian and English
5. Appendix 1 - Employment History: Summary of employment duration, positions, and salary history
6. Appendix 2 - Tax Calculations: Breakdown of tax treatment for different components of the severance package
Authors
Find the document you need
Tenant Vacate Notice
A formal notice under Indonesian law used by tenants to inform landlords of their intention to vacate a rented property.
Download
Job Termination Notice
A formal notice compliant with Indonesian labor law that documents the termination of employment, including termination details and final settlement information.
Download
Notice Of Non Renewal Of Employment Contract
An Indonesian law-compliant notice document informing an employee that their fixed-term employment contract will not be renewed.
Download
End Of Service Notice
A formal notice document under Indonesian law that communicates employment termination and outlines termination benefits and final settlement details.
Download
Written Notice To End Lease
A formal notice document under Indonesian law used to terminate a lease agreement, outlining termination details and party obligations.
Download
Employee Severance Agreement
An Indonesian law-governed agreement detailing employment termination terms, severance payments, and mutual obligations between employer and employee.
Download
Contract Termination Letter To Employer
A formal letter used in Indonesia to notify an employer of an employee's voluntary termination of employment, complying with Indonesian labor laws and regulations.
Download
骋别苍颈别鈥檚 Security Promise
蜜桃传媒 is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your data is private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on 蜜桃传媒 is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
