Document background
The Basic Separation Agreement is a crucial document used in Indonesia when formally terminating an employment relationship by mutual consent. It serves as a comprehensive record of the separation terms while ensuring compliance with Indonesian labor regulations, particularly the Manpower Law and Job Creation Law. This agreement is typically used when both parties have reached an amicable decision to end the employment relationship and wish to document the terms of separation, including statutory entitlements, final settlements, and ongoing obligations. The document must incorporate mandatory provisions under Indonesian law regarding severance payments, service appreciation pay, and other statutory benefits, while also addressing practical aspects such as the return of company property and confidentiality obligations. A properly drafted Basic Separation Agreement helps minimize potential disputes and provides legal certainty for both parties in accordance with Indonesian employment law requirements.
