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Employee Release Form for Indonesia

Employee Release Form Template for Indonesia

A comprehensive legal document governed by Indonesian labor law, specifically Law No. 13 of 2003 on Manpower and its amendments through the Job Creation Law of 2020, that formalizes the termination of employment relationship between an employer and employee. This document outlines the terms of separation, including severance payments, final settlements, and mutual release of claims, while ensuring compliance with Indonesian legal requirements for employment termination. It serves as a crucial instrument in preventing future disputes by clearly documenting the agreed-upon terms of separation and the mutual understanding between parties regarding the conclusion of the employment relationship.

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What is a Employee Release Form?

The Employee Release Form is a critical document used in Indonesian employment terminations to formalize the end of an employment relationship and protect both employer and employee interests. It is designed to comply with Indonesian Labor Law (Law No. 13 of 2003 on Manpower) and its recent amendments through the Job Creation Law of 2020. This document is typically used when an employment relationship is terminated by mutual consent, resignation, or other circumstances requiring formal documentation of separation terms. It includes essential details such as termination date, settlement amounts, severance calculations according to Indonesian regulations, release of claims, and ongoing obligations. The form serves as legal evidence of agreed termination terms and helps prevent future disputes by clearly documenting all aspects of the separation agreement in accordance with Indonesian employment regulations.

What sections should be included in a Employee Release Form?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship, including start date, position, and mutual agreement to terminate

3. Definitions: Key terms used in the release form, including 'Effective Date', 'Claims', 'Benefits', and 'Release'

4. Termination Date: Clear statement of the employment termination date and final working day

5. Settlement Amount: Details of all financial settlements, including severance, appreciation pay, and other compensations as per Indonesian Labor Law

6. Payment Terms: Timeline and method of payment for all settlements and final payments

7. Release of Claims: Comprehensive release of all claims, disputes, and demands against the employer

8. Return of Company Property: List of company properties to be returned and confirmation of return

9. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

10. Tax Provisions: Statement on tax treatment of payments and responsibilities

11. Governing Law: Confirmation that the agreement is governed by Indonesian law

12. Acknowledgment: Employee's acknowledgment of understanding and voluntary acceptance of terms

What sections are optional to include in a Employee Release Form?

1. Non-Competition: Restrictions on future employment with competitors, if applicable and agreed upon

2. Reference Letter: Terms regarding the provision of employment references

3. Ongoing Benefits: Any continuation of benefits post-termination, such as health insurance

4. Training Cost Recovery: Terms for recovering training costs if employment ended before agreed period

5. Mutual Non-Disparagement: Agreement by both parties not to make negative statements about each other

6. Legal Consultation: Acknowledgment that employee had opportunity to seek legal advice

7. Resignation Letter: Reference to and incorporation of separate resignation letter if relevant

What schedules should be included in a Employee Release Form?

1. Schedule A - Settlement Calculation: Detailed breakdown of severance payment, appreciation pay, and other benefits as per Indonesian Labor Law

2. Schedule B - Company Property List: Itemized list of company properties to be returned

3. Schedule C - Final Payroll Details: Calculation of final salary, unused leave, and other entitlements

4. Appendix 1 - Resignation Letter: Copy of employee's resignation letter if applicable

5. Appendix 2 - Benefits Summary: Summary of any continuing benefits or insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






























Clauses

























Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Telecommunications

Professional Services

Hospitality

Agriculture

Energy

Transportation

Consumer Goods

Relevant Teams

Human Resources

Legal

Compliance

Finance

Employee Relations

Payroll

Executive Leadership

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Compliance Officer

HR Business Partner

Personnel Manager

Employment Relations Manager

HR Operations Manager

Recruitment Manager

Compensation and Benefits Manager

Chief Human Resources Officer

Labor Relations Specialist

HR Administrator

Chief Legal Officer

General Counsel

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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