Resigning or leaving a job is not always an easy decision. There are many factors to consider, from future career plans and financial circumstances to readiness to adapt to a new work environment.
However, there is one thing that is equally important to understand before submitting your resignation: your rights and obligations as an employee.
Understanding the applicable regulations can help ensure a smoother resignation process. It can also help you identify what needs to be prepared and what rights you may be entitled to once your employment relationship ends.
So, what should you consider before resigning? Here’s what you need to know.
Are Employees Who Resign Entitled to Severance Pay?
This may be one of the most common questions that comes to mind when someone is planning to resign.
The answer is that employees who voluntarily resign are not automatically entitled to severance pay in the same way as employees whose employment is terminated for certain reasons.
However, employees who resign voluntarily and meet the requirements under applicable regulations may be entitled to certain benefits, including compensation for rights and separation pay, in accordance with those regulations.
The requirements for voluntary resignation are set out in Government Regulation (PP) No. 35 of 2021. Under this regulation, employees who wish to resign must submit a written resignation notice at least 30 days before the effective resignation date, must not be bound by a service bond, and must continue fulfilling their responsibilities until the effective resignation date.
Therefore, it is important to distinguish between severance pay, compensation for rights, and separation pay. These are three different forms of payment, each subject to its own provisions.
Employee Rights When Resigning
After deciding to resign, employees should understand what rights they may be entitled to. In general, these may include:
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Compensation for Rights
Employees who meet the applicable requirements may be entitled to compensation for certain rights.
This may include unused and non-expired annual leave, the cost or expenses of returning the employee and their family to the place where the employee was recruited, as well as other rights stipulated in the employment agreement, company regulations, or collective labor agreement.
However, the application of these provisions should still be assessed based on the circumstances and regulations applicable to each company.
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Separation Pay
In addition to compensation for rights, employees who voluntarily resign and meet the applicable requirements may also be entitled to separation pay.
Unlike severance pay, the amount of separation pay is not automatically the same for every employee. Its terms may be stipulated in the employment agreement, company regulations, or collective labor agreement.
Therefore, before submitting your resignation, it is advisable to review the employment documents applicable to your company.
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Other Rights Under the Employment Agreement
In addition to rights regulated by law and regulation, a company may provide certain benefits or include specific provisions in the employment agreement.
For example, there may be provisions regarding the payment of certain benefits or the completion of administrative matters after an employee’s employment relationship ends.
Therefore, make sure to review your employment agreement and company policies to ensure that you do not overlook any important information.
Employee Obligations Before Resigning
Resigning is not simply a matter of submitting a resignation letter. Employees also have certain obligations that need to be fulfilled to ensure a smooth process.
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Submit Your Resignation in Writing
Under PP No. 35 of 2021, a resignation must be submitted in writing at least 30 days before the effective resignation date.
In addition to complying with this requirement, make sure you understand your company’s internal resignation procedures. Some companies may have specific processes to follow, such as resigning HR or an internal system.
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Continue Working Until Your Last Day
Resigning does not mean that an employee can immediately leave their job.
During the notice period, employees are still expected to fulfill their responsibilities until the effective resignation date. Make sure that your ongoing tasks are completed or properly prepared for the handover process.
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Complete the Work Handover
A proper handover is an important part of the resignation process.
You can prepare a list of ongoing tasks, record the status of each project, and provide the necessary information to your manager or colleagues who will take over your responsibilities.
This helps ensure that work can continue smoothly even after you have left the company.
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Return Company Assets
Before your last working day, make sure that all company assets in your possession have been returned.
These assets may include laptops, access cards, work equipment, documents, or other items belonging to the company.
You should also complete any required administrative procedures, including closing access to internal company systems or accounts, if necessary.
What Should You Prepare Before Resigning?
To make sure nothing is overlooked, you can use the following checklist before submitting your resignation:
- Carefully considered your decision to resign.
- Understand the company’s resignation procedures.
- Reviewed your employment agreement.
- Checked the applicable company regulations or collective labor agreement.
- Understand the required resignation notice period.
- Prepare your resignation letter.
- Understand the rights you may be entitled to.
- Prepared a plan to complete your responsibilities.
- Prepared for the work handover process.
- Know which company assets need to be returned.
Taking these steps can make the resignation process more organized and help minimize confusion.
What Laws Regulate Resignation?
Several interconnected legal frameworks govern employment and labor relations in Indonesia.
One of these is Law No. 13 of 2003 on Manpower, which has been amended by the Job Creation regulations, including Law No. 6 of 2023. Law No. 6 of 2023 enacted Government Regulation (Perppu) No. 2 of 2022 on Job Creation into law and introduced changes to several labor-related provisions.
Meanwhile, more specific provisions regarding voluntary resignation can be found in PP No. 35 of 2021. This regulation sets out several requirements that employees must meet when resigning, including submitting written notice at least 30 days in advance, not being bound by a service bond, and continuing to fulfill their responsibilities until the effective date of resignation.
Because labor regulations may continue to evolve, employees and companies should always refer to the latest applicable regulations and review their respective internal policies.
Resign Professionally and Maintain Good Relationships
Regardless of the reason for your resignation, leaving a company on good terms remains important.
Throughout the resignation process, try to maintain professional communication with your manager and colleagues. Complete your responsibilities and carry out the handover process properly.
Maintaining professional relationships can also be beneficial in the future. After all, the professional world is a broad network, and you may encounter former colleagues or managers again throughout your career.
Therefore, resigning does not necessarily have to mark the end of a professional relationship.
Conclusion
Resigning from a job is not simply about submitting a resignation letter and waiting for your last working day. There are several rights and obligations that employees should understand to ensure the process runs smoothly.
Employees who voluntarily resign are not automatically entitled to severance pay. However, if they meet the applicable requirements, they may be entitled to certain benefits, such as compensation for rights and separation pay, in accordance with the applicable provisions.
At the same time, employees must also fulfill their obligations, from submitting their resignation in accordance with the required procedures and continuing to work until the effective resignation date to completing the handover of work.
Therefore, before officially submitting your resignation, take the time to understand your rights and obligations. With proper preparation, the resignation process can be smoother, compliant with applicable regulations, and leave a positive and professional impression.
