Employment — PKWT, PHK and severance
Terminating an employee in Indonesia is a procedure, not a decision. The grounds and the severance arithmetic are set by statute, and what is left to negotiate is narrower than most employers expect. This service covers PKWT and PKWTT contracts, termination documents and the severance calculation — for employers, and for employees who have been let go.
What you get
- A written severance calculation showing each component and the multiplier applied.
- The grounds for termination assessed in writing against UU 13/2003 as amended by UU 6/2023 and PP 35/2021, before you act.
- Drafted documents: the PKWT or PKWTT, the termination letter, or a mutual-separation agreement (Perjanjian Bersama).
- Representation through bipartite negotiation, mediation at the manpower office, and the Industrial Relations Court if it goes that far.
How it runs, step by step
| Milestone | Typical time | What happens / your part |
|---|---|---|
| Advice & severance calculation | 2–4 days | We assess the grounds and compute the statutory severance |
| Documents drafted | 2–5 days | PKWT/PKWTT, PHK letter or mutual-separation (Perjanjian Bersama) |
| Bipartite negotiation | Up to 30 working days | Direct negotiation with the employee |
| Disnaker mediation | ~30 working days | Mediation at the manpower office |
| Industrial Relations Court (PHI) | ~50 working days + cassation | If it escalates |
Typical total: Documents: days; a dispute runs 3–6 months
Legal basis
| Aspect | Basis |
|---|---|
| Grounds for termination and statutory severance | UU 13/2003 jo. UU 6/2023 (Job Creation); PP 35/2021 |
Each basis above has been verified against the primary source and filed in the firm's dossier for this service. Points still under verification are not published here.
Common questions
Can I just pay someone to leave?
Often yes, through a mutual-separation agreement (Perjanjian Bersama), and it is frequently the shortest route. It holds only if the amount and the release are documented properly and the employee signs freely. A separation agreed verbally and paid in cash leaves you open to the same claim later.
How much severance do I actually owe?
It depends on the grounds for termination, the length of service, and which wage components count. UU 13/2003 as amended by UU 6/2023, together with PP 35/2021, set the formula and the multipliers — once the grounds are settled, the number is arithmetic. Disputes are usually about the grounds, not the maths.
My PKWT keeps getting renewed. Does that matter?
It can. How a fixed-term contract may be used, and what follows when it does not fit those limits, changes what is owed if the relationship ends. We read the contract history against the current rules at intake and tell you where you stand before you act, rather than after.
Honest limits
The firm does not control the manpower office's mediation calendar or the Industrial Relations Court's listing — the durations shown are indicative of 2026 practice, not commitments. This service does not include payroll, BPJS administration or tax filing. Fee is fixed in the engagement letter after intake.
Talk to the advocate
Tell us what you are dealing with on WhatsApp. That first message is intake and a conflict check — not legal advice. Advice happens in a booked consultation: Rp2.5 million for 90 minutes, credited against your fee if you retain the firm within 30 days.
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