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Friendly Termination Of Services Letter for Indonesia

Friendly Termination Of Services Letter Template for Indonesia

A Friendly Termination of Services Letter is a formal document used in Indonesia to document the mutual agreement between an employer and employee to end their employment relationship amicably. The document must comply with Indonesian Labor Law (Law No. 13 of 2003 on Manpower) and its amendments under the Job Creation Law of 2020. It outlines the terms of separation, including the effective date of termination, final settlement details, and any post-employment obligations. The letter serves as evidence of a consensual termination and helps prevent future disputes by clearly documenting the agreed terms and conditions of the separation.

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What is a Friendly Termination Of Services Letter?

The Friendly Termination Of Services Letter is a crucial document used in Indonesian employment relationships when both parties agree to end their working relationship on mutually acceptable terms. This document type is particularly relevant when an amicable separation is desired and both parties wish to maintain positive professional relationships. The letter must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law of 2020, ensuring proper documentation of the termination terms, final settlements, and any continuing obligations. It's commonly used in scenarios such as voluntary resignations, mutual agreements to part ways, or business restructuring where both parties have reached an amicable arrangement. The document typically includes details about final payments, handover procedures, and any post-employment obligations, serving as a legal record of the termination agreement.

What sections should be included in a Friendly Termination Of Services Letter?

1. Letter Header and Date: Company letterhead, date, and reference number of the letter

2. Recipient Details: Employee's full name, position, and employee ID number

3. Subject Line: Clear indication that this is a mutual termination of services letter

4. Opening Statement: Reference to previous discussions and mutual agreement to terminate

5. Effective Date: Clear statement of when the employment relationship will end

6. Acknowledgment of Service: Recognition of the employee's contribution and duration of service

7. Terms of Separation: Key points about final salary, benefits, and severance payment as per Indonesian labor law

8. Handover Requirements: List of company property to be returned and work responsibilities to be transferred

9. Final Settlement Date: Timeline for processing final payments and benefits

10. Closing Statement: Expression of goodwill and future references

11. Signature Block: Space for signatures of both employer and employee representatives

What sections are optional to include in a Friendly Termination Of Services Letter?

1. Non-Compete Clause: Include when there are specific industry restrictions post-employment

2. Confidentiality Reminder: Include when handling sensitive information was part of the role

3. Reference Agreement: Include when specific arrangements about future references have been made

4. Outstanding Leave Balance: Include when there is remaining annual leave to be addressed

5. Continuing Obligations: Include when certain obligations continue post-employment

6. Medical Benefits Extension: Include when providing extended medical coverage

What schedules should be included in a Friendly Termination Of Services Letter?

1. Calculation of Final Settlement: Detailed breakdown of final payment including salary, severance, and other benefits

2. Company Property Checklist: List of company assets to be returned

3. Handover Document: Detailed list of ongoing projects and responsibilities to be transferred

4. Release and Waiver Form: Standard form acknowledging receipt of all entitlements and waiving future claims

5. Exit Interview Form: Standard form for documenting the exit interview process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

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Energy

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Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Corporate Communications

Employee Relations

Payroll

Risk Management

Relevant Roles

Chief Executive Officer

Human Resources Manager

Legal Counsel

Department Manager

Project Manager

Senior Executive

Operations Director

Finance Manager

Administrative Officer

Sales Manager

Technical Lead

Business Development Manager

Regional Manager

Account Manager

General Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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