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.
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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
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
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
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