Terminating An Employment Relationship In Indonesia

Under Law No. 13 of 2003 regarding Labor (the "Labor Law") and other prevailing labor laws and regulations, employment-at-will and termination upon simple notice are not recognized in Indonesia. Employment terminations must follow the procedures under the Labor Law and Law No. 2 of 2004 regarding Industrial Relations Dispute Settlement ("Law No. 2").

Before terminating an employment relationship, the parties (employee, employer and, if applicable, labor union) are required to meet in an attempt to reach an amicable termination settlement. This meeting is known as bipartite negotiation. Such negotiations should be completed within 30 days, and minutes of each negotiation must be drafted and signed by all parties.