Resignation must be in writing.

An employee who resigns voluntarily must give written notice at least 30 calendar days before the effective date of resignation.

Under voluntary resignation, the employee generally is not entitled to severance pay.

• Unused leave balances must be compensated.

• Any other contractual or policy‑based benefits (bonuses, housing, etc.) must be applied as per contract/company regulation.

According to Indonesian Manpower Law (Law No. 13 of 2003 amended by Job Creation Law) and GR 35/2021, valid grounds for termination with cause include (but are not limited to):

• Serious misconduct / grave wrongdoing by the employee: Theft of company property; false/falsified information that causes company loss; intoxication (alcohol/narcotics) in workplace; immorality/indecency; gambling in workplace; threatening, intimidating, assaulting co‑workers or employer; divulging trade secrets.

• Violation of employment contract, company regulations, or collective labour agreement, especially after warnings (“up to three warning letters” in many practical cases)

• Absence from work for five consecutive working days without valid explanation or supporting evidence (depending on contract / regulation)

• Employee ordering or being persuaded to commit acts against law; assignment of work dangerous to life, safety, health or morality if not disclosed in contract

• Long‑term illness/disability or other incapacity under certain conditions (if the employee cannot perform work for more than 12 consecutive months, etc.)

• Also, under certain business related “cause” conditions: company losses over two consecutive years; bankruptcy; force majeure; company rationalization/efficiency measures; mergers, acquisition etc if certain conditions met.

Written notice. Must include the reason / purpose for termination, and the payments / entitlements to be paid.

In case of “urgent violations” (gross misconduct) that are defined in the employment agreement/company regulations/collective agreement, prior notice is not required and termination may be effective immediately.

Not applicable in cases of termination with cause.

Compensation of rights (“uang penggantian hak”): This includes things like:

• Payment for unused annual leave;

• Return home / repatriation costs (if applicable);

• Any other entitlements under contract, company regulation or collective agreement.

• This type of termination is also called unilateral termination, or “PHK.” It is carried out by the employer for standard/non‑misconduct reasons such as redundancy, business efficiency, prolonged illness, etc.

• Employers may terminate without cause if there are valid non‑misconduct reasons such as:

  • Company merger, consolidation, spin‑off, or business reorganization.

  • Company experiencing losses or restructuring for efficiency.

  • Closure of the company (partial or full) for business reasons.

  • Retirement, death, or prolonged illness/disability (after a certain period) where the employee cannot continue work.

Must be a written notice from the employer specifying intention and reason for termination; must also include information on termination payments and other entitlements.

• Under GR 35/2021, for employer‑initiated terminations, the employer must give written notice of termination at least 14 working days before the intended date of termination.

• If the employee is under probation, notice period is 7 working days.

• Severance Pay (Uang Pesangon): Amount depends on length of service and reason for termination. Severance pay begins at one month's salary for employees with up to one year of service, increasing by an additional month's salary for each extra year worked, capping at nine months' pay for those with eight or more years of service.

• Service Appreciation / Long Service Pay (Uang Penghargaan Masa Kerja): Reward for years of service. Reward compensation starts at two months' salary for those employed between three and six years, rising by one month’s pay for every additional three years, reaching a maximum of 10 months’ salary for 24 or more years of service.

Compensation of Rights (Uang Penggantian Hak): For example, payment for unused annual leave, costs like repatriation or return travel (if applicable), other contractual entitlements.

Mutual Termination Agreements (“META” / “Mutual Separation Agreement”) are covered in Indonesian law, especially under GR No. 35 of 2021 and the amendments via the Job Creation Law.

Written agreement signed by both employer and employee documenting the mutual consent to terminate.

The statutory notice periods (14 working days for permanent employees; 7 working days if on probation) apply for unilateral terminations, but for mutual terminations those can be waived or altered by agreement.

When an MTA is agreed, the end‑of‑service benefits are whatever the law requires plus whatever the parties agree in the settlement. Key statutory benefits still apply unless law or regulation explicitly allows departure by mutual agreement.

• All wages earned up to the agreed termination date must be paid.

• Compensation for unused statutory annual leave

• Any contractually agreed benefits that have accrued prior to termination

• There’s no special statutory “notice period” required in the law for PKWT when the contract ends because its term expires or the specified work is completed.
• The contract itself may specify procedures / notice, but legally the expiration triggers end without needing a prior “termination notice” if that was what the parties agreed.

• When a PKWT ends normally (by expiry or completion of job), the employee is entitled to compensation pay. This is sometimes called “uang kompensasi”.
• The formula: if the employee has worked continuously for one month or more, the compensation pay = (period worked ÷ 12) × one month’s salary. If the term is less than one month, no compensation is required.
• This compensation does not apply to foreign workers under certain regulations.

• Payment for any unused annual leave (if accrued) or similar rights under PKWT / employment contract.
• Any other entitlements stipulated in the contract, company regulation, or collective agreement.
• Benefits such as return travel or repatriation (if applicable), allowances, bonuses etc., if contract or regulation provides.

• If the employer ends the PKWT before its term ends, the employer must honor whatever, if any, notice requirement is in the PKWT contract. The law does not set a different standard “statutory notice period” for early termination beyond what is in the contract.
• However, in practice notice or warning processes may be required under general PHK (termination) rules if not waived in the agreement.

• The employee is entitled to balance of contract pay (i.e. payment for what remains of the contract term) unless exceptions apply (death, contract expiration naturally, completion of work, court decision, or other agreed triggers).
• Also entitled to compensation pay as above, calculated based on the portion of the PKWT already served.

• Payment for unused annual leave, benefits under the contract, etc., must be made.
• Any other contractual entitlements must be settled.

The law does not specify a fixed number of days after termination (or resignation) by which final payments must be made in all cases, but obligations must be fulfilled without undue delay, and companies are legally required to pay all termination payments/entitlements. Contracts or local regulations may specify deadlines.

Failure to pay required amounts when due can lead to labor disputes; employers may face legal liabilities, including being ordered by the Industrial Relations Court to pay interest/damages.