End Of Fixed Term Contract Template for Indonesia

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Key Requirements PROMPT example:

End Of Fixed Term Contract

"I need an End of Fixed Term Contract document for our Jakarta-based software developer whose 2-year contract expires on March 15, 2025, including provisions for project handover and the return of specialized development equipment."

Document background

The End Of Fixed Term Contract document is essential for Indonesian employers when concluding fixed-term employment relationships (PKWT) in compliance with Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. It is specifically used when a fixed-term contract reaches its natural expiration date, requiring proper documentation of the termination process, final payments, and mutual obligations. The document ensures legal compliance while protecting both employer and employee interests, incorporating recent regulatory changes affecting fixed-term employment in Indonesia. It should be used to properly document the conclusion of employment, confirm final settlements, address ongoing obligations, and provide necessary releases, all while adhering to Indonesian employment law requirements.

Suggested Sections

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

2. Background: Reference to the original employment contract, its date, and key terms including position and duration

3. Definitions: Definition of key terms used in the document, including 'Termination Date', 'Final Settlement', and 'Outstanding Obligations'

4. Confirmation of Contract End: Clear statement confirming the natural expiration of the fixed-term contract and the final working day

5. Final Settlement: Details of all final payments including salary, pro-rated benefits, and any statutory payments required under Indonesian law

6. Return of Company Property: List of company properties to be returned and confirmation of their return

7. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-employment

8. Mutual Release: Release of claims between parties, subject to the completion of final settlements

9. Governing Law: Confirmation that the agreement is governed by Indonesian law

10. Execution: Signature blocks for both parties with proper witnessing requirements

Optional Sections

1. Non-Competition and Non-Solicitation: Only included if these restrictions were part of the original employment contract and are being reinforced

2. Certificate of Employment: Optional section confirming the employer will provide a certificate of employment

3. Reference Letter: Terms regarding the provision of employment references, if agreed

4. Future Employment Opportunities: Optional clause regarding potential future re-employment, if applicable

5. Social Security Settlement: Specific details about BPJS Employment and Health Insurance settlements, if requiring special attention

Suggested Schedules

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including basic salary, benefits, and statutory payments

2. Schedule 2 - Company Property Checklist: Itemized list of company property to be returned with condition assessment

3. Schedule 3 - Employee Clearance Form: Departmental clearance sign-offs for various company departments

4. Appendix A - Original Employment Contract: Copy of the original fixed-term employment contract for reference

5. Appendix B - Handover Report: Documentation of work handover and status of ongoing projects

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

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