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A Release of Claims is a legal agreement where one party gives up their right to sue or seek compensation for specific incidents, disputes, or potential claims. In Indonesia, these documents play a crucial role in settling employment disputes, personal injury cases, and business conflicts under the Civil Code (KUHPerdata).

Once signed, this binding document prevents the releasing party from pursuing further legal action over the specified matters. Indonesian businesses commonly use releases alongside severance payments, accident settlements, or contract terminations. The agreement must be clear, voluntary, and supported by valid consideration (such as payment) to be enforceable under Indonesian law.

Use a Release of Claims when resolving disputes or ending business relationships in Indonesia to protect against future legal complications. This document becomes essential during employee separations, accident settlements, contract terminations, or when closing major business deals where lingering liability concerns exist.

Indonesian companies need releases most urgently during severance negotiations, after workplace incidents, or when settling supplier disagreements. The timing matters - securing a release before making settlement payments prevents the other party from coming back with additional demands later. This protection is particularly valuable in Indonesia's civil law system, where written agreements carry significant weight in courts.

• Release Of All Claims Form: Most comprehensive type, covering all possible claims and liabilities related to an incident or relationship
• Property Damage Release Form: Specifically for settling property-related disputes and damages in real estate or rental contexts
• Final Lien Release Form: Used in construction projects to release payment claims after project completion
• Claim Release Letter: Less formal version often used for smaller disputes or straightforward settlements
• Release Of Claims Form: Standard template adaptable for employment separations and general business disputes

• Employers: Draft and issue Release of Claims during employee separations, ensuring protection against future employment-related lawsuits
• Corporate Legal Teams: Review and customize releases to align with Indonesian labor laws and company policies
• Insurance Companies: Use releases when settling accident claims or property damage disputes with policyholders
• Construction Companies: Implement releases for project completions and contractor payments
• Business Owners: Secure releases when dissolving partnerships or settling commercial disputes
• Legal Consultants: Advise clients on release terms and negotiate conditions under Indonesian civil law requirements

• Identify Parties: Gather complete legal names and addresses of all parties involved in the release
• Document Incidents: List specific events, dates, and claims being released with clear details
• Confirm Consideration: Specify the exact payment or benefit being provided in exchange for the release
• Review Requirements: Check Indonesian Civil Code provisions for release validity in your specific situation
• Gather Evidence: Collect supporting documents, incident reports, or relevant correspondence
• Language Choice: Decide if dual-language (Indonesian and English) versions are needed
• Signing Authority: Verify that signatories have proper authorization under company bylaws

• Party Information: Full legal names, addresses, and registration numbers of all involved parties
• Consideration Statement: Clear description of payment or benefit exchanged for the release
• Release Scope: Detailed outline of claims being released, including specific incidents and timeframes
• Governing Law: Express reference to Indonesian Civil Code and relevant regulations
• Language Clause: Statement on prevailing language if document is bilingual
• Voluntary Agreement: Confirmation that parties enter the agreement freely and understand its terms
• Signature Block: Space for dated signatures, company stamps, and witness signatures when required
• Severability Clause: Protection ensuring partial invalidity doesn't void entire agreement

A Release of Claims differs significantly from a Release Agreement in several key aspects under Indonesian law. While both documents involve releasing rights, their scope and application serve distinct purposes in legal practice.

• Scope of Release: A Release of Claims specifically addresses known, existing claims from past events. A Release Agreement can cover broader future rights and potential claims
• Timing of Effect: Release of Claims takes effect immediately upon signing, while Release Agreements may include ongoing or future obligations
• Legal Prerequisites: Release of Claims requires specific incident details and consideration. Release Agreements can be more general and may not always need direct compensation
• Common Usage: Release of Claims typically resolves disputes or settlements. Release Agreements are often used in business transactions or ongoing relationships
• Enforceability Requirements: Under Indonesian Civil Code, Release of Claims must clearly identify specific claims being released. Release Agreements can have broader, more flexible terms