Document background
The Employee Release Agreement is a crucial document used in Indonesian employment terminations to formalize the end of an employment relationship and document all associated terms and obligations. It is typically used when employment is terminated by mutual consent, redundancy, or other circumstances where a clear record of separation terms is needed. The agreement must strictly comply with Indonesian labor laws, including the Manpower Law and Job Creation Law, particularly regarding mandatory severance calculations and employee protections. It serves multiple purposes: documenting the formal termination date, specifying all financial settlements, addressing ongoing obligations like confidentiality, and providing mutual releases of claims. This document is especially important in Indonesia's employee-protective legal environment, where proper documentation of termination terms can prevent future disputes and ensure regulatory compliance.
