The Separation Agreement and General Release is a crucial document used in Indonesia when formally ending an employment relationship by mutual agreement. It serves as a comprehensive record of the termination terms while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020). This document is typically used when both parties agree to end the employment relationship amicably and wish to document all aspects of the separation, including statutory payments, additional benefits, and mutual releases. It provides protection for both employer and employee by clearly outlining all terms of the separation, including confidentiality obligations, non-disparagement provisions, and release of claims. The agreement should be drafted in both English and Indonesian languages to ensure enforceability under Indonesian law.
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1. Parties: Identifies the employer and employee entering into the agreement
2. Background: States the context of the employment relationship and the decision to terminate
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment
5. Statutory Payments: Details mandatory payments under Indonesian law including severance, service pay, and compensation
6. Additional Benefits: Outlines any additional payments or benefits beyond statutory requirements
7. Final Salary and Expense Claims: Addresses payment of final salary and settlement of expense claims
8. Company Property: Lists company property to be returned and timeline for return
9. Confidentiality Obligations: Specifies ongoing confidentiality obligations post-employment
10. General Release: Comprehensive release of claims by employee against employer
11. Non-Disparagement: Mutual agreements regarding non-disparagement
12. Governing Law: Confirms Indonesian law as governing law and relevant jurisdiction
13. Execution: Signature blocks and execution requirements
1. Post-Employment Restrictions: Non-compete and non-solicitation clauses if applicable to the employee's role
2. Reference: Terms regarding the provision of employment references
3. Outplacement Support: Details of any career transition services provided
4. Tax Indemnity: Provisions regarding tax treatment of payments and indemnities
5. Legal Costs: Provisions regarding payment of legal fees for agreement review
6. Garden Leave: Terms of any garden leave period before final termination
7. Medical Benefits Extension: Details of any extended medical coverage post-termination
8. Share Options/Awards: Treatment of any outstanding share options or equity awards
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including statutory and additional benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-termination
4. Appendix A - Statutory Payment Calculator: Calculations showing compliance with Indonesian labor law requirements
5. Appendix B - Release Form: Formal release document in Indonesian language as required by law
6. Appendix C - Handover Document: Template for documenting handover of responsibilities
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