The Employee Exit Agreement serves as a crucial document in Indonesian employment relationships, used when an employer and employee mutually agree to terminate their employment relationship. It is designed to comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended) and Government Regulation No. 35 of 2021. The agreement documents all aspects of the employment termination, including final payments, statutory entitlements, confidentiality obligations, and mutual releases. It is particularly important in situations involving senior employees, complex severance arrangements, or when clear documentation of termination terms is essential for risk management. The document helps prevent future disputes by clearly outlining all termination terms and ensuring compliance with mandatory Indonesian legal requirements.
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1. Parties: Identification of the employer and employee, including complete legal names and addresses
2. Background: Brief context of the employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement
4. Effective Date of Termination: Clear statement of when the employment relationship ends
5. Final Settlement: Details of all financial settlements including salary, severance pay, and other entitlements as per Law No. 13 of 2003
6. Company Property: Requirements for return of company assets and documentation
7. Confidentiality Obligations: Ongoing obligations regarding company confidential information
8. Release and Waiver: Mutual release of claims and legal rights
9. Tax Provisions: Treatment of tax obligations for all payments
10. Governing Law: Confirmation of Indonesian law as governing law
11. Execution: Signature blocks and execution requirements
1. Board Resignation: Required for director-level employees resigning from board positions
2. Non-Competition: Used when implementing post-employment competition restrictions (subject to Indonesian law limitations)
3. Non-Solicitation: Restrictions on soliciting employees or customers
4. Handover Requirements: Detailed transition requirements for senior roles
5. Reference and Announcements: Terms regarding employment references and public announcements
6. Ongoing Cooperation: Terms for post-employment assistance with investigations or litigation
7. Intellectual Property Assignment: Specific IP-related provisions for technical or creative roles
8. Social Media: Requirements regarding professional social media accounts and connections
1. Schedule 1 - Payment Calculation: Detailed breakdown of all termination payments including statutory entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Handover Checklist: Detailed list of tasks and documents to be handed over
4. Appendix A - Resignation Letter: Form of resignation letter to be signed
5. Appendix B - Release Form: Detailed release form as required by Indonesian law
6. Appendix C - Certificate of Handover: Form to document completed return of company property and information
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