Employee Termination Release Agreement Template for Indonesia

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Key Requirements PROMPT example:

Employee Termination Release Agreement

"I need an Employee Termination Release Agreement under Indonesian law for a senior technology executive's mutual separation from our Jakarta-based software company, including non-compete provisions and treatment of unvested stock options, with termination effective March 1, 2025."

Document background

The Employee Termination Release Agreement is a crucial document used in Indonesian employment relationships when formalizing the end of employment. It serves as a legally binding instrument that protects both employer and employee interests during separation, ensuring compliance with Indonesian labor laws, particularly the Omnibus Law (Law No. 11 of 2020) and Government Regulation No. 35 of 2021. This agreement is typically used when employment is terminated by mutual consent, redundancy, or other legitimate grounds under Indonesian law. It details severance calculations, final payments, benefit arrangements, and includes mutual releases of claims. The document must carefully balance the mandatory employee protections under Indonesian law with the employer's need for finality in the termination process.

Suggested Sections

1. Parties: Identification of the employer and employee, including complete legal names and addresses

2. Background: Context of the employment relationship, including start date, position, and brief reason for termination

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology

4. Termination Date: Specific date of employment termination and last working day

5. Severance Package: Detailed breakdown of severance pay, service appreciation pay, and compensation rights as per Indonesian regulations

6. Final Payments: Details of final salary, pro-rated benefits, and other outstanding payments

7. Company Property: Requirements for return of company property and confidential information

8. Release of Claims: Mutual release of claims and waiver of rights, subject to Indonesian law limitations

9. Continuing Obligations: Post-employment obligations including confidentiality and non-disparagement

10. Tax Treatment: Tax handling of termination payments as per Indonesian tax regulations

11. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Competition: Restrictions on future employment, if applicable and enforceable under Indonesian law

2. Reference Letter: Terms regarding the provision of employment references

3. Medical Benefits Extension: Continuation of medical benefits, if offered beyond termination

4. Repatriation: For expatriate employees, terms regarding return travel and shipping

5. Training Cost Recovery: If applicable, terms for recovering training costs as allowed by Indonesian law

6. Resignation from Positions: For senior employees, resignation from director or officer positions

7. Social Security Transition: Details regarding BPJS Employment and Health insurance transition

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed calculation of severance pay according to Indonesian labor law formula

2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including salary, benefits, and deductions

3. Schedule C - Company Property List: Inventory of company property to be returned

4. Appendix 1 - Employment History: Summary of employment period, positions held, and salary history

5. Appendix 2 - Benefits Statement: Statement of all benefits and entitlements up to termination date

6. Appendix 3 - Tax Calculations: Breakdown of tax treatment for various payment components

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

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Manufacturing

Technology

Financial Services

Retail

Healthcare

Construction

Mining

Agriculture

Education

Transportation

Hospitality

Professional Services

Energy

Telecommunications

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Payroll

Compliance

Employee Relations

Corporate Secretariat

Risk Management

Industrial Relations

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Employment Lawyer

HR Business Partner

Compensation & Benefits Manager

Employee Relations Manager

HR Operations Manager

Payroll Manager

Chief Human Resources Officer

General Counsel

Finance Director

Chief Financial Officer

Company Secretary

Compliance Officer

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Simple General Release Form

An Indonesian law-compliant document where one party releases legal claims against another in exchange for consideration.

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Authors

Alex Denne

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