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Terminating Employees in Indonesia: A Complete Guide to Legal Compliance, Severance Pay, and PP 35/2021
"Navigating the landscape of human resources and labor law in Indonesia requires a deep understanding of local statutory requirements. Historically, Indonesia has maintained one of the most worker-protective legal frameworks in Southeast Asia. While the enactment of the Omnibus Law on Job Creation (Law No. 11 of 2020, amended by Law No. 6 of 2023) and its implementing regulation, Government Regulation No. 35 of 2021 (PP 35/2021), aimed to introduce greater flexibility, terminating employees in Indonesia remains a highly regulated and legally sensitive process. For multinational corporations and local enterprises alike, executing a termination—..."
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