Document background
The Termination of Contract of Service document is a crucial legal instrument used in Indonesian employment relations when ending an employment relationship. It must comply with Law No. 13 of 2003 on Manpower, the Job Creation Law (Omnibus Law) of 2020, and related regulations. This document is required whenever an employment relationship is terminated, whether due to resignation, performance issues, redundancy, or mutual agreement. It serves multiple purposes: formally documenting the termination, specifying the effective date, detailing financial settlements including mandatory severance payments, and outlining post-employment obligations. The document protects both employer and employee interests by ensuring transparency and compliance with Indonesian labor laws, particularly regarding notice periods, severance calculations, and final settlements. It also helps prevent future disputes by clearly documenting the terms of separation.
