This Termination Without Cause Contract is essential for employers operating in Indonesia who need to end employment relationships for reasons not related to employee performance or misconduct. It is specifically designed to comply with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law). The document is typically used during company restructuring, business model changes, or strategic realignment where positions become redundant. It includes mandatory provisions for notice periods, severance calculations according to Indonesian labor law formulas, and comprehensive details about final settlements. The agreement protects both employer and employee interests by clearly documenting the termination terms, ensuring legal compliance, and minimizing the risk of future disputes.
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1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and roles
2. Background: Brief context of the employment relationship, including original employment date and current position
3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Notice Period', and 'Termination Date'
4. Notice of Termination: Formal statement of termination and notice period as per Indonesian law
5. Effective Date: Clear specification of when the termination takes effect
6. Severance Package: Details of the severance pay, reward for service years, and compensation rights as per Law No. 13 of 2003
7. Final Payments: Breakdown of final salary, unused leave, and other entitled benefits
8. Company Property: Requirements for returning company assets and documents
9. Confidentiality Obligations: Ongoing obligations regarding confidential information post-termination
10. Release and Waiver: Mutual release of claims subject to fulfillment of agreement terms
11. Governing Law: Confirmation of Indonesian law as governing law
12. Execution: Signature blocks and execution requirements
1. Non-Competition: Restrictions on working for competitors, if applicable under Indonesian law and original employment agreement
2. Transition Responsibilities: Details of handover duties, used when role requires significant knowledge transfer
3. Reference Provision: Terms regarding future employment references, if agreed between parties
4. Post-Employment Benefits: Any additional benefits extending beyond termination date
5. Medical Insurance Extension: Terms for continuing medical coverage, if applicable
6. Relocation Assistance: Support for relocated employees returning to their original location
7. Stock Options/Share Rights: Treatment of any outstanding equity compensation
1. Schedule A - Severance Calculation: Detailed calculation of severance pay according to Indonesian labor law formulas
2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including salary, leave, and other benefits
3. Schedule C - Company Property List: Comprehensive list of company assets to be returned
4. Schedule D - Handover Checklist: Detailed list of tasks and documents to be handed over before departure
5. Appendix 1 - Release Form: Standard release and waiver form as required under Indonesian law
6. Appendix 2 - Benefits Summary: Summary of post-employment benefits and their duration
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Energy
Telecommunications
Professional Services
Hospitality
Agriculture
Transportation
E-commerce
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Industrial Relations
Employee Relations
Talent Management
Compensation and Benefits
Relevant Roles
Chief Executive Officer
Managing Director
Human Resources Manager
Legal Counsel
Department Head
Senior Manager
Project Manager
Operations Manager
Finance Director
Regional Manager
Country Manager
General Manager
Line Manager
Supervisor
Administrative Officer
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