In Indonesia, it is said that it is difficult to dismiss employees, but the Omnibus Law allows labor and management to draw up a termination agreement and terminate the employment relationship without obtaining permission from the competent authority such as the local labor office. Permission from the competent authority is required only if a termination agreement has not been drawn up by labor and management. On the other hand, in order to confirm the suitability of the dismissal agreement, it is mandatory to submit a notification to the industrial dispute resolution court in the state where the dismissal agreement is located. Now let's take a look at how to submit a report.

[Preparation of required documents]

You cannot register even if you bring only the termination agreement. There are some required documents. Required documents include an application form for registering a termination agreement (there is no standard form; each company creates one), a power of attorney from the company to the person in charge of processing, a document certifying that the person issuing the power of attorney is the representative of the company, a personal registration form (copy) of the person in charge of processing, proof of final rights payment, etc. In other words, even if you create a termination agreement, there are many supporting documents that are required. What I am a little concerned about is each signer. A termination agreement is, of course, a personnel-related document. Normally, the application form for registering a termination agreement is signed by the human resources manager, and the power of attorney from the company to the person in charge of processing is signed by the president or director, even if the person is a foreigner. If there is an Indonesian director, it would be safer for that person to issue a power of attorney. The proof of being a company representative is the company's articles of incorporation.

[Final rights payment evidence]

The termination agreement contains details regarding the payment of severance pay, etc. You are required to submit evidence to confirm that the amount was paid on time and in accordance with the agreed deadline. In recent years, most companies use bank transfer systems to transfer money directly from company accounts to employees' registered accounts, so there is often no such thing as a paper transfer receipt. Therefore, you will need to prepare something like a transfer certificate to download from the system. The point is that the money is transferred from the company's account to the account in the employee's name according to the date and amount specified in the agreement. this 4 The document must be able to confirm the points. A problem that often arises is that the termination agreement only states severance pay, etc., and does not state how much the final month's wages will be, but since the money is sent in one lump sum, it is difficult to know whether the amount is correct or not. Proof is often required, especially if the final month's wage is calculated on a pro-rata basis and is different from the fixed monthly wage. Therefore, the trick to avoiding trouble is to transfer the final month's wages and the final rights stated in the termination agreement separately and keep the evidence separate. With a little extra effort, you can ensure a smooth process.
Also, if the payment of the final entitlement is combined with the last month's wage payment date, the period from the date of termination of the employment relationship to the date of payment of the final entitlement is 1 It may be open for more than a month. During this time, the termination agreement cannot be submitted, so the employee may change his mind and claim that the termination agreement is not valid because it has not been registered. It seems less problematic to pay the final entitlement as soon as the employee's obligations are completed.