On 11 March 2022, the Directorate General of Advocacy for Industrial Relations and Workers Social Security issued Letter No. 4/303/HI.00.03./III/2022 Tahun 2022 on Notification and Reporting Documents on Termination of Employee ("CL 4/2022").
CL 4/2022 is a part of the implementing regulation in connection with the new legal framework on manpower law under Law No. 11 of 2020 on Job Creation Law ("Job Creation Law"); and Government Regulation No. 35 of 2021 on Fixed-Term Employment, Outsourcing, Working Hours and Rest Times, and Termination ("GR 35 2021"). The matters stipulated in CL 4/2022 include the procedure of reporting the termination of employment to the Manpower Office (Dinas Ketenagakerjaan), and the standard forms of various documents deemed mandatory under GR 35/2021 to effect the termination of employment.
In this article, we provide a brief overview of the standard reporting mechanism of termination of employees that has been majorly changed compared to the previous employment law regime.
Before the enactment of Job Creation Law and GR 35/2021, the termination of employment required various steps and procedures.
Under the previous regulatory regime, the relevant employers and employees had to initiate negotiations and/or mediation (bipartite) processes to reach the agreed terms of terminations that included lawful terminations due to the employers' financial losses or closure. In...
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