The Basic Separation Agreement is a crucial document used in Indonesia when formally terminating an employment relationship by mutual consent. It serves as a comprehensive record of the separation terms while ensuring compliance with Indonesian labor regulations, particularly the Manpower Law and Job Creation Law. This agreement is typically used when both parties have reached an amicable decision to end the employment relationship and wish to document the terms of separation, including statutory entitlements, final settlements, and ongoing obligations. The document must incorporate mandatory provisions under Indonesian law regarding severance payments, service appreciation pay, and other statutory benefits, while also addressing practical aspects such as the return of company property and confidentiality obligations. A properly drafted Basic Separation Agreement helps minimize potential disputes and provides legal certainty for both parties in accordance with Indonesian employment law requirements.
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1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions
2. Background: Brief context of the employment relationship, including start date, position, and mutual agreement to separate
3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Separation Date', and other relevant terminology
4. Separation Terms: Details of the employment termination, including the official separation date and reason for separation as per Indonesian labor law
5. Financial Entitlements: Comprehensive breakdown of all statutory and additional payments, including severance, service appreciation pay, and other entitlements under Indonesian law
6. Tax Treatment: Clarification of tax obligations and treatment of separation payments under Indonesian tax regulations
7. Company Property: Requirements for return of company assets, documents, and other property
8. Final Release: Mutual release of claims between parties, subject to Indonesian law requirements
9. Continuing Obligations: Ongoing obligations regarding confidentiality and other surviving terms
10. Governing Law: Specification of Indonesian law as governing law and jurisdiction for disputes
11. Execution: Signature blocks and formal closing of the agreement
1. Non-Competition: Restrictions on future employment with competitors, if applicable and enforceable under Indonesian law
2. Handover Requirements: Detailed process for transitioning ongoing work and projects, used when employee has significant operational responsibilities
3. Reference and Communications: Terms regarding future employment references and agreed communication about the separation
4. Benefits Continuation: Details of any continued benefits or insurance coverage, if applicable
5. Outplacement Support: Terms of any career transition or outplacement services provided
6. Intellectual Property Rights: Specific provisions regarding ownership and transfer of IP created during employment
7. Non-Disparagement: Mutual obligations to refrain from negative statements, if agreed between parties
1. Schedule 1 - Calculation of Separation Payments: Detailed breakdown of all payment components as per Indonesian Manpower Law
2. Schedule 2 - Company Property Register: List of all company assets and documents to be returned
3. Schedule 3 - Handover Checklist: Detailed list of tasks and responsibilities to be transferred
4. Appendix A - Release Form: Standard form for final release and quitclaim as required under Indonesian law
5. Appendix B - Confidential Information: Definition and scope of confidential information to be protected post-employment
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Professional Services
Healthcare
Education
Construction
Mining
Transportation
Hospitality
Telecommunications
Energy
Agriculture
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Risk Management
Internal Audit
Corporate Communications
Information Technology
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
General Manager
Department Manager
Senior Manager
Project Manager
Account Manager
Software Engineer
Sales Representative
Marketing Executive
HR Manager
Financial Analyst
Operations Supervisor
Administrative Assistant
Customer Service Representative
Technical Specialist
Research Analyst
Business Development Manager
Product Manager
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