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Termination Due To Performance

Termination Due To Performance Template for Indonesia

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Key Requirements PROMPT example:

Termination Due To Performance

"I need a Termination Due To Performance agreement for a senior software developer in our Jakarta tech company who has failed to meet project deadlines for the past 6 months despite two formal warnings, with termination planned for March 2025 and including specific provisions for the handover of ongoing projects and source code."

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Document background
This Termination Due To Performance document is essential for Indonesian employers seeking to formally end an employment relationship based on documented performance deficiencies. It should be used when an employee has demonstrated consistent underperformance despite previous warnings and improvement opportunities, and where the termination process must strictly comply with Indonesian labor laws. The document incorporates mandatory elements required by Law No. 13 of 2003 on Manpower and its amendments, including performance documentation, prior warnings, improvement plan history, and statutory compensation calculations. It serves as both a legal record of the termination process and a settlement agreement, ensuring all necessary procedures have been followed and appropriate compensation is provided in accordance with Indonesian employment regulations.
Suggested Sections

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

2. Background: Context of the employment relationship, including start date, position, and brief history of performance issues

3. Definitions: Key terms used in the agreement including 'Effective Date', 'Performance Standards', 'Final Settlement', etc.

4. Performance History: Detailed documentation of performance issues, including dates and specific instances of underperformance

5. Previous Remedial Actions: Summary of previous warnings, performance improvement plans, and opportunities given to improve

6. Grounds for Termination: Specific reasons for termination with reference to employment contract and applicable laws

7. Termination Date: Clear statement of the effective date of employment termination

8. Final Settlement: Details of final payment including salary, severance, and other benefits as per Indonesian law

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

10. Release and Waiver: Mutual release of claims subject to fulfillment of termination terms

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

12. Execution: Signature blocks and execution details

Optional Sections

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

2. Confidentiality Obligations: Detailed confidentiality terms if not covered in existing employment agreement

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

4. Transitional Arrangements: If applicable, arrangements for handover of work and responsibilities

5. Dispute Resolution: Specific procedures for resolving disputes, including mediation before legal proceedings

6. Social Security Settlement: Specific arrangements regarding BPJS Employment and Healthcare benefits

7. Outstanding Leave: Calculation and settlement of unused leave entitlements

Suggested Schedules

1. Schedule 1 - Performance Review Documentation: Copies of relevant performance reviews and warnings

2. Schedule 2 - Severance Calculation: Detailed calculation of severance pay, long service pay, and other entitlements as per Indonesian law

3. Schedule 3 - Company Property List: Itemized list of company property to be returned

4. Schedule 4 - Final Settlement Breakdown: Detailed breakdown of all final payments and deductions

5. Appendix A - Performance Improvement Plan History: Documentation of previous performance improvement plans and outcomes

6. Appendix B - Exit Procedures: Checklist of actions required for completing the termination process

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Company
Employee
Effective Date
Termination Date
Performance Standards
Performance Improvement Plan
Written Warnings
Final Settlement
Severance Payment
Service Pay
Compensation Payment
Outstanding Salary
Company Property
Confidential Information
Employment Contract
Performance Review
Business Day
Notice Period
Final Release
Settlement Period
Handover Period
Exit Process
Governing Law
Industrial Relations Court
Previous Warnings
Social Security Benefits
BPJS Employment
BPJS Healthcare
Final Payslip
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Employee Relations

Senior Management

Operations

Administration

Relevant Roles

HR Manager

HR Director

Legal Counsel

Department Manager

Line Manager

Supervisor

Team Leader

Division Head

General Manager

Managing Director

HR Business Partner

Industrial Relations Manager

Compliance Officer

Employee Relations Manager

Industries
Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020): The primary employment law in Indonesia that regulates employment relationships, including grounds for termination, procedures, and workers' rights
Government Regulation No. 35 of 2021: Implementing regulation for fixed-term employment, outsourcing, working hours, rest periods, and termination of employment relationships
Indonesian Civil Code (KUHPerdata): Provides basic principles of contract law and general obligations that apply to employment agreements
Minister of Manpower Regulation No. 3 of 1996: Guidelines for settling employment termination and determining severance pay, long service pay, and compensation in private companies
Law No. 2 of 2004: Regarding Industrial Relations Dispute Settlement, which provides procedures for resolving employment disputes including termination disputes
Company Regulations (Peraturan Perusahaan) or Collective Labor Agreement (PKB): Internal company regulations or collective agreements that may contain specific provisions about performance standards and termination procedures
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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