Following the enactment of GR 35/2021 in 2021, there are additional procedures that employers needs to follow during the termination process, such as serving the employment termination notification to the respective employee within 14 working days (or seven working days for employees who are still under the probationary period) prior to the effective date of the termination, and filing a mandatory report to the local Manpower office should the employee have no objection to the termination.

However, the latter obligation on filing a mandatory report was unclear until the issuance of a circular letter by the Director General of Industrial Relations and Manpower Social Security Development, of Minster of Manpower on 11 March 2022 governing the detailed procedures of the employment termination (Circular Letter) was issued.

Since the issuance of the Circular Letter, the employer is now required to file the mandatory employment termination report to the local manpower office where it domiciled.

What to do?

If no objection is provided by the employee with respect to the employment termination, a report containing the below points shall be filed to the local manpower office where the employer is domiciled:

1. Summary of employment termination process exhausted by the employer.
2. Information pertaining to the payment of post-termination entitlements by the employer to the employee

In addition to the above, the employer is required to enclose the employment termination notification and response letter provided by the employee stating that he/she is not objecting the termination along with the report.

When to file such a report?

Neither the GR 35/2021 nor the Circular Letter specify a certain timeline regarding when to file such a report to the local manpower office.

Will a proof of submission be provided?

Yes. The local manpower office will issue a receipt which serves as proof of mandatory employment termination report receipt.

Authored by Teguh Darmawan and Andera Rabbani.