Document background
The Employment Separation Agreement is a crucial document used in Indonesia when formally ending an employment relationship, whether through mutual consent, resignation, or termination. It serves as a comprehensive record of the separation terms and ensures compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law (Law No. 11 of 2020). This document typically includes details of final payments, severance calculations, treatment of benefits, confidentiality obligations, and mutual releases. It's essential for protecting both employer and employee interests, minimizing the risk of future disputes, and ensuring all statutory requirements are met. The agreement should be drafted with careful consideration of local labor regulations, tax implications, and social security requirements.
