Asia: Mutual separations and exiting employees

Are employer-initiated mutual separations common?

No, save in redundancy situations or where the employee is a senior one and there is a negotiated exit.

• an ex gratia payment
• payment in lieu of notice (if required)
• payment of accrued but untaken annual leave
• pro-rated payment of an Annual Wage Supplement, where the employee has a contractual entitlement

Not as common as in some other jurisdictions (like Indonesia or Japan), where it is more difficult to terminate unilaterally. However, we often see mutual separations initiated in redundancy situations or for negotiated exits.

• an ex gratia payment
• payment in lieu of notice (if required)
• payment of accrued but untaken annual leave
• pro-rated payment of any 'end of year payments', where the employee has a contractual entitlement
• severance or long service payments, where the employee has a statutory entitlement

Yes, as otherwise the employer will need to obtain a court order before it is able to terminate employment.

• depending on the circumstances, payment of either the standard or enhanced statutory severance package (comprising of a severance payment, a service payment and compensation pay)
• an ex gratia payment can also be made

Yes, employer-initiated mutual separations are relatively common.

• an ex gratia payment
• payment of accrued but untaken annual leave (which must be paid out a special rates)
• severance, where the employee has a statutory entitlement

No. Mutual separations are usually only initiated in redundancy situations.

• an ex gratia payment
• payment in lieu of notice (if required
• payment of accrued but untaken annual leave
• severance, where the employee has a statutory entitlement
• all other contractual entitlements

Yes, as it is usually very difficult for an employer to terminate employment in Japan.

• an ex gratia payment
• payment in lieu of notice (if required)
• depending on the employer's work rules, payment of a retirement allowance