This Termination Due To Performance document is essential for Indonesian employers seeking to formally end an employment relationship based on documented performance deficiencies. It should be used when an employee has demonstrated consistent underperformance despite previous warnings and improvement opportunities, and where the termination process must strictly comply with Indonesian labor laws. The document incorporates mandatory elements required by Law No. 13 of 2003 on Manpower and its amendments, including performance documentation, prior warnings, improvement plan history, and statutory compensation calculations. It serves as both a legal record of the termination process and a settlement agreement, ensuring all necessary procedures have been followed and appropriate compensation is provided in accordance with Indonesian employment regulations.
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1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions
2. Background: Context of the employment relationship, including start date, position, and brief history of performance issues
3. Definitions: Key terms used in the agreement including 'Effective Date', 'Performance Standards', 'Final Settlement', etc.
4. Performance History: Detailed documentation of performance issues, including dates and specific instances of underperformance
5. Previous Remedial Actions: Summary of previous warnings, performance improvement plans, and opportunities given to improve
6. Grounds for Termination: Specific reasons for termination with reference to employment contract and applicable laws
7. Termination Date: Clear statement of the effective date of employment termination
8. Final Settlement: Details of final payment including salary, severance, and other benefits as per Indonesian law
9. Company Property: Requirements for return of company property and handling of confidential information
10. Release and Waiver: Mutual release of claims subject to fulfillment of termination terms
11. Governing Law: Confirmation that the agreement is governed by Indonesian law
12. Execution: Signature blocks and execution details
1. Non-Competition: Restrictions on future employment, if applicable and enforceable under Indonesian law
2. Confidentiality Obligations: Detailed confidentiality terms if not covered in existing employment agreement
3. Reference Letter: Terms regarding the provision of employment references
4. Transitional Arrangements: If applicable, arrangements for handover of work and responsibilities
5. Dispute Resolution: Specific procedures for resolving disputes, including mediation before legal proceedings
6. Social Security Settlement: Specific arrangements regarding BPJS Employment and Healthcare benefits
7. Outstanding Leave: Calculation and settlement of unused leave entitlements
1. Schedule 1 - Performance Review Documentation: Copies of relevant performance reviews and warnings
2. Schedule 2 - Severance Calculation: Detailed calculation of severance pay, long service pay, and other entitlements as per Indonesian law
3. Schedule 3 - Company Property List: Itemized list of company property to be returned
4. Schedule 4 - Final Settlement Breakdown: Detailed breakdown of all final payments and deductions
5. Appendix A - Performance Improvement Plan History: Documentation of previous performance improvement plans and outcomes
6. Appendix B - Exit Procedures: Checklist of actions required for completing the termination process
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Hospitality
Professional Services
Telecommunications
Transportation
Energy
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Industrial Relations
Employee Relations
Senior Management
Operations
Administration
Relevant Roles
HR Manager
HR Director
Legal Counsel
Department Manager
Line Manager
Supervisor
Team Leader
Division Head
General Manager
Managing Director
HR Business Partner
Industrial Relations Manager
Compliance Officer
Employee Relations Manager
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