Employee Termination Due To Company's Acquisition

"Conducting an acquisition may result in employee termination. As the result of the termination of an employee for the company's acquisition, the company shall give severance pay, tenure awards, and compensation per enacted law and regulation. Uniquely, there are conditions when the acquisition leads to changes in the work requirements, and the employee does not want to continue working in the company; the compensation calculation is different from the termination generated by the company because of the acquisition itself."

Acquisition is referred to as a company takeover, which is a legal act carried out by a legal entity or individual to take over the shares of a company which results in the transfer of control over the company. According to Article 125 para. 1 of Law No. 40 of 2007 regarding Limited Liability Company ("Law No. 40/2007"), an acquisition shall be carried out by way of acquiring the shares that has been and/or about to be issued by a company