An End of Service Agreement is a crucial document used when formally concluding an employment relationship in Indonesia. It is typically implemented when an employee's service is being terminated through mutual agreement, resignation, retirement, or other circumstances as permitted under Indonesian labor law. The document must strictly comply with Law No. 13 of 2003 on Manpower, the Omnibus Law (Law No. 11 of 2020), and related regulations governing employment termination. The agreement encompasses mandatory severance calculations, benefit settlements, and post-employment obligations while providing legal protection for both parties. It serves as official documentation of the termination terms and helps prevent future disputes by clearly outlining all final settlements and ongoing obligations. This agreement is particularly important in the Indonesian context due to the country's strict employee protection laws and specific requirements for termination benefits.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and registration numbers where applicable
2. Background: Brief context of the employment relationship, including start date, position, and reason for termination
3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Final Settlement', 'Outstanding Benefits'
4. Termination Date: Specifies the official last day of employment and final working day if different
5. Final Settlement: Details of all financial settlements including salary, severance pay, and other benefits as per Indonesian Labor Law
6. Return of Company Property: Requirements and timeline for returning company assets, documents, and equipment
7. Confidentiality Obligations: Ongoing obligations regarding confidential information post-employment
8. Full and Final Settlement: Confirmation that the agreement represents a full and final settlement of all claims
9. Tax Provisions: Clarification of tax treatment of payments and responsibilities
10. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Non-Competition: Restrictions on working for competitors, if applicable and agreed (note: must be reasonable and limited in scope under Indonesian law)
2. References: Agreement on the nature and content of employment references
3. Ongoing Cooperation: Terms for employee assistance in transition or future inquiries
4. Medical Benefits Extension: Any continuation of medical benefits beyond termination date
5. Share Options/Financial Instruments: Treatment of any outstanding share options or financial instruments
6. Resignation from Directorships: Required for employees who held director positions
7. Social Media Handover: Procedures for transferring control of professional social media accounts
1. Schedule 1 - Calculation of Final Settlement: Detailed breakdown of all payments including basic salary, severance pay, service appreciation pay, and other entitlements as per Indonesian Labor Law
2. Schedule 2 - Company Property Register: List of all company property to be returned
3. Schedule 3 - Outstanding Benefits: Details of any pro-rated bonuses, unused leave, and other benefits
4. Appendix A - Statutory Declaration: Employee's declaration confirming receipt of all entitlements under Indonesian law
5. Appendix B - Release Form: Standard release form as required by Indonesian Labor Law
Relevant legal definitions
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Manufacturing
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Financial Services
Mining
Oil and Gas
Retail
Construction
Healthcare
Education
Professional Services
Telecommunications
Agriculture
Hospitality
Transportation
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Employee Relations
Payroll
Risk Management
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Project Manager
Technical Specialist
Sales Executive
Administrative Officer
Operations Manager
Finance Manager
HR Manager
Marketing Director
Software Engineer
Account Manager
Production Supervisor
Research Analyst
Customer Service Representative
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