Under the Indonesian labour law, termination of employment in Indonesia can be initiated by the employer through dismissal or by the employee through resignation.
What is an employment termination agreement?
An employment termination agreement is an agreement between employee and employer to end an existing employment contract without giving prior notice – although the agreement must be made mutually.
On what grounds can a contract of employment be legally terminated in Indonesia?
Due to ideology, religion, political inclination, tribe, race, group, gender, physical condition, or marital status; Becoming permanently disabled, injured by a work accident, or sick due to working conditions for an indeterminate period as confirmed by a doctor’s certificate.
What is the retirement age in Indonesia?
55
In Indonesia, where retirement age is 55 (quite low compared to other countries), an employee only has 30 years of work if he starts working at age 25. Consequently, the replacement rate in Indonesia needs to be adjusted to a maximum of 60% of final earnings.
What is the employment law in Indonesia?
According to Indonesia’s existing employment laws, there are various important laws that govern employment. Indonesia’s primary employment law is Law 13/2003, which applies equally to all employees and does not draw distinctions between different types of worker.
What are the benefits of a termination agreement?
These benefits can include compensation paid in lump-sums, periodically, or a combination of the two. It may also include supplemental unemployment benefits, job retraining, as well as outplacement services.
At what age can you start working in Indonesia?
Under Indonesian law, the minimum working age is 15, although light work can be done as of age 13, as long as it does not stunt or disrupt the child’s physical, mental or social development and is limited to no more than three hours a day.
