In accordance with the introduction of the Job Creation Law1, the Government has enacted new regulations on the termination of employment, by either the employee or the employer, in relation to a company acquisition.2 The new regulations do not change the current laws3 on the amount of severance pay, length of service pay and expense compensation rights. The new regulations do, however, decrease the amount of severance pay, by half, that a departing employee will be entitled to if they or their employer terminates their employment post acquisition.
1 Law Number 11 of 2020 on Job Creation.
2 Government Regulation Number 35 of 2021 on Temporary Employment Agreement, Outsourcing, Working Hours And Breaks And Termination Of Employment Relationships.
3 Law Number 13 of 2003 on Manpower.
