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Cancellation Of Employment Contract

Cancellation Of Employment Contract Template for Indonesia

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Key Requirements PROMPT example:

Cancellation Of Employment Contract

"I need a Cancellation of Employment Contract for a mutual separation agreement with our Senior Marketing Manager, effective March 15, 2025, including extended health benefits for 3 months and an agreed reference letter."

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Document background
The Cancellation of Employment Contract is a crucial document used in Indonesia when formally ending an employment relationship between an employer and employee. It must comply with Indonesia's Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law No. 11 of 2020) and related regulations, which provide strict requirements for employment termination. This document is typically used during voluntary resignations, mutual separation agreements, or company-initiated terminations. It includes essential elements such as termination date, final settlement calculations, severance pay according to statutory requirements, treatment of remaining benefits, and post-employment obligations. The document serves as legal evidence of the employment termination and helps prevent future disputes by clearly documenting all agreed terms and conditions of the separation.
Suggested Sections

1. Header/Date: Document title, date, and reference number

2. Parties: Full details of the employer and employee, including their respective addresses and positions

3. Background: Brief history of employment relationship, including original employment date and current position

4. Definitions: Key terms used in the agreement, including references to relevant employment agreements and company policies

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

6. Reason for Termination: Specific grounds for termination in accordance with Indonesian labor law

7. Final Settlement: Breakdown of final payments including salary, severance pay, service pay, and other entitlements as per regulations

8. Company Property: Requirements for return of company assets, documents, and confidential information

9. Release and Waiver: Mutual release of claims and obligations post-termination

10. Confidentiality: Ongoing obligations regarding confidential information

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

12. Signatures: Space for signatures of both parties and witnesses

Optional Sections

1. Non-Compete Clause: Restrictions on future employment, if applicable and agreed upon (note: must be reasonable and limited in scope)

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

3. Outstanding Leave: Calculation and treatment of any unused annual leave or other leave entitlements

4. Medical Benefits Extension: Any continuation of medical benefits post-termination

5. Ongoing Cooperation: Requirements for employee assistance in handover or transition periods

6. Dispute Resolution: Specific procedures for resolving any disputes about the termination agreement

7. Social Security Status: Details regarding BPJS employment and health insurance status post-termination

Suggested Schedules

1. Schedule 1 - Calculation of Final Payments: Detailed breakdown of all final payments including basic salary, severance pay, service pay, and other entitlements

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Outstanding Benefits: List of any pro-rated or outstanding benefits, bonuses, or reimbursements

4. Appendix A - Original Employment Contract: Copy of the original employment contract being terminated

5. Appendix B - Handover Checklist: Checklist of tasks, documents, and responsibilities to be handed over

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 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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Manufacturing

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Relevant Teams

Human Resources

Legal

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Senior Management

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Administration

Industrial Relations

Payroll

Employee Relations

Relevant Roles

HR Manager

Legal Counsel

Department Manager

Company Director

HR Director

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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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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