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Employment Settlement Agreement
"I need an Employment Settlement Agreement for a senior IT Director in Jakarta who is mutually agreeing to leave our tech company on March 1, 2025, with provisions for confidentiality, extended health benefits, and share option treatment."
1. Parties: Identification of the employer and employee, including their full legal names, addresses, and relevant registration/identification numbers
2. Background: Brief context of the employment relationship, including start date, position, and high-level reason for termination
3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Settlement Sum', 'Confidential Information'
4. Termination of Employment: Formal statement of employment termination, specifying the last day of employment and immediate obligations
5. Settlement Payments: Details of all payments to be made, including statutory severance, service appreciation pay, and other entitlements under Indonesian law
6. Tax and Deductions: Treatment of tax obligations and any authorized deductions from settlement payments
7. Company Property: Requirements for return of company property, documents, and data
8. Confidentiality Obligations: Ongoing confidentiality obligations post-employment
9. Full and Final Settlement: Mutual release of claims and waiver of rights to future claims
10. Reference and Announcement: Agreement on how the departure will be communicated and terms of employment references
11. Governing Law and Jurisdiction: Confirmation of Indonesian law governance and dispute resolution procedures
12. Execution: Signature blocks and execution requirements
1. Non-Competition and Non-Solicitation: Post-employment restrictions, used when the employee had access to sensitive information or key client relationships
2. Ongoing Cooperation: Terms for employee assistance in transitioning duties or future inquiries, used when handover is complex or litigation is pending
3. Medical Benefits Continuation: Terms for extending medical coverage, used when agreed as part of the settlement package
4. Share Options/Awards: Treatment of outstanding equity compensation, used when employee participated in share schemes
5. Legal Fees: Agreement regarding payment of legal fees, used when employer agrees to cover employee's legal costs
6. Reinstatement of Employment: Conditions under which employment relationship could be reinstated, used in specific regulatory contexts
1. Schedule 1 - Settlement Payment Calculation: Detailed breakdown of all payment components including statutory severance, long service pay, and other entitlements
2. Schedule 2 - Company Property Register: List of all company property to be returned and confirmation of return
3. Schedule 3 - Outstanding Benefits: Detail of any pro-rated bonus, unused leave, and other benefits calculations
4. Appendix A - Resignation Letter: Standard format resignation letter if termination is documented as resignation
5. Appendix B - Release Form: Detailed release of claims form in compliance with Indonesian law
6. Appendix C - Handover Report: Template for documenting handover of duties and ongoing projects
Authors
Appointment Letter
Business Day
Company
Company Property
Confidential Information
Effective Date
Employee
Employment Contract
Final Salary
Long Service Pay (Uang Penghargaan Masa Kerja)
Outstanding Benefits
Parties
Release
Religious Holiday Allowance (THR)
Resignation Letter
Severance Payment (Uang Pesangon)
Settlement Payment
Settlement Sum
Termination Date
Trade Secrets
Transition Period
Unused Annual Leave
Working Day
Termination Date
Settlement Payments
Payment Terms
Statutory Deductions
Tax Treatment
Final Payroll Processing
Company Property Return
Confidentiality
Intellectual Property
Non-Disparagement
Non-Competition
Non-Solicitation
Release and Waiver
Outstanding Claims
Benefits Cessation
References
Cooperation
Public Announcements
Legal Compliance
Severability
Entire Agreement
Amendment
Notices
Governing Law
Dispute Resolution
Force Majeure
Third Party Rights
Costs
Counterparts
Manufacturing
Technology
Financial Services
Retail
Healthcare
Construction
Education
Mining
Agriculture
Telecommunications
Professional Services
Hospitality
Energy
Transportation
Real Estate
Human Resources
Legal
Finance
Operations
Administration
Compliance
Industrial Relations
Employee Relations
Payroll
Risk Management
Chief Executive Officer
Chief Financial Officer
Managing Director
General Manager
Department Head
Senior Manager
Manager
Supervisor
Senior Executive
Executive
Officer
Administrative Staff
Technical Specialist
Sales Representative
Production Worker
Professional Staff
Contract Employee
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