[co-author: Andera Rabbani]
As previously introduced under the Government Regulation No. 35 of 2021 on the temporary employment agreement, outsourcing, working hours and breaks, and employment termination (GR 35/2021). The employer's obligation to file the employment termination report to the local manpower office is now officially in force.
Following the enactment of GR 35/2021 on 2021, there are additional procedures that the employer 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 has no objection over 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).
As of 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 provided by the employee with respect to the employment termination, a report containing:
- Summary of employment termination process exhausted by the employer.
- Information pertaining to the payment of post-termination entitlements by the employer to the employee
The report which also containing the above points shall be filed to the local manpower office where the employer domiciled.
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 report?
Both GR 35/2021 and the Circular Letter do not specify a certain timeline on when to file such report to the local manpower office.
Will there be a proof of submission?
Yes. The local manpower office will issue a receipt which prevails as proof of mandatory employment termination report receipt.
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