Table 16 : Contracts of employments, their termination and severance pay

Territory

CONFIDENTIAL

Kong

Indonesia

機密

Contract of employment

Any contract for a period in excess of one month shall be deemed a month-to-month contract unless the contract is evidenced in writing signed by the parties thereto.

Unless otherwise specified, contracts are considered to be for indefinite periods. The duration of the probationary period shall not exceed three months. Contracts for plantation workers and for workers recruited in other provinces must be in writing.

Notice for termination

(a) One month notice or one month's pay in lieu where the period of notice is not specified in the contract, or

(b) any period as agreed but not less

than 7 days in the case of a 'continuous contract.

For termination of employment prior approval must be obtained from the Regional or Central Committee for the Settlement of Labour Disputes. Normal mode of termination by giving notice or payment in lieu is neither acceptable nor provided for in the law.

Severance payment

For redundancy only:

Half a month's pay for every year of service for monthly rated employees or 13 days' wages for every year of service for other employees, subject to a maximum payment of 12 months' wages. Only service dating 8 years back before 23 August 1974 may be taken into-account. -

Minimum service for entitlement: 24 months

One month's wages for service up to 1 Two months' wages for service up to 2 Three months' wages for service up to

3 years

CONFIDENTIAL

Four months' wages for service over 3 years

機密

Korea

(Republic

of)

Duration of contract must normally. not exceed one year

30 days. advance notice or payment in lieu of notice

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Separate provisions for severance.pament. are not required as every employer must establish a Retirement Allowance System which provides at least 30 days' average wage for each year of continuous service for workers on leaving employment.

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