Document background
A Termination Addendum is utilized when an employment relationship needs to be formally concluded in Indonesia, whether by mutual agreement or unilateral termination. This document serves as a critical amendment to the original employment agreement, ensuring compliance with Indonesian labor laws and regulations. The addendum must carefully address all statutory requirements under Indonesian law, including proper notice periods, severance calculations, and final benefit settlements. It should be used whenever employment termination occurs, regardless of the reason (resignation, redundancy, performance, or mutual separation). The document typically includes comprehensive details about final payments, continuing obligations, and release of claims. As a Termination Addendum, it forms part of the official employment documentation and may be required in any subsequent labor disputes or regulatory compliance reviews.
