Employment Law Update: Promotion to Directorship May Entail Termination Payment

On 15 December 2022, the Supreme Court issued Circular Letter No. 1 of 2022 (“Circular Letter 1 / 2022”) which summarises the outcome of its civil chamber’s meeting earlier in 2022. Circular Letter 1 / 2022 serves as Supreme Court’s guidance for Indonesian courts in adjudicating disputes. Circular Letter 1 / 2022 accommodates Supreme Court’s view with respect to the treatment of employees who are appointed to directorship.

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