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Layoff Letter From Employer for Indonesia

Layoff Letter From Employer Template for Indonesia

A formal termination document prepared in accordance with Indonesian labor laws, particularly the Job Creation Law (Omnibus Law) and Manpower Law No. 13 of 2003. This letter officially communicates the termination of employment, specifying the effective date, reasons for layoff, and details of the severance package. It must comply with Indonesian legal requirements regarding termination procedures, including proper notice periods and calculation of mandatory severance payments. The document serves as a legal record of the employment termination and outlines all financial entitlements, benefits, and obligations of both parties during the separation process.

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What is a Layoff Letter From Employer?

A Layoff Letter From Employer is a crucial document in Indonesian employment law that formally communicates the termination of employment relationship. It is used when companies need to reduce their workforce due to economic conditions, restructuring, or other business reasons. The document must strictly comply with Indonesian labor regulations, particularly the Job Creation Law (Omnibus Law) and Manpower Law No. 13 of 2003, which mandate specific requirements for termination procedures, severance calculations, and employee rights. This letter serves multiple purposes: it provides official notice of termination, documents the legal basis for the layoff, details the severance package, and outlines the transition process. It's essential for protecting both employer and employee interests and maintaining proper documentation for potential labor disputes.

What sections should be included in a Layoff Letter From Employer?

1. Company Letterhead and Date: Official company letterhead with complete contact information and date of issuance

2. Employee Information: Full name, employee ID, position, and department of the affected employee

3. Subject Line: Clear indication that this is a termination/layoff notice

4. Termination Statement: Clear statement of employment termination with specific effective date

5. Legal Basis: Reference to relevant Indonesian labor laws and company policies justifying the termination

6. Reason for Termination: Clear explanation of the business reasons for the layoff (e.g., economic conditions, restructuring)

7. Severance Package Details: Breakdown of severance pay, service appreciation pay, and other compensation as per Indonesian law

8. Final Payment Information: Details about final salary, unused leave compensation, and timing of final payments

9. Company Property Return: Instructions for returning company assets and timeline

10. Closing Statement: Professional closing with acknowledgment of service and future reference provision

11. Signature Block: Space for authorized company representative's signature and employee acknowledgment

What sections are optional to include in a Layoff Letter From Employer?

1. Performance History Summary: Include when layoff is partially related to performance issues, documenting previous warnings or improvement plans

2. Outplacement Support: Details of any career transition assistance if offered by the company

3. Non-Compete Reminder: Include if employee is bound by existing non-compete agreements

4. Healthcare Benefits Extension: Information about continued health benefits if applicable

5. Rehire Eligibility: Statement about future employment possibilities with the company

6. Confidentiality Obligations: Reminder of ongoing confidentiality obligations if applicable

What schedules should be included in a Layoff Letter From Employer?

1. Severance Calculation Sheet: Detailed breakdown of severance pay calculation as per Indonesian labor law

2. Benefits Summary: Comprehensive list of final benefits and entitlements

3. Exit Checklist: List of tasks to complete before last day

4. Company Property Inventory: List of company assets to be returned

5. Release Agreement: If applicable, agreement waiving future claims against the company

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

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Telecommunications

Transportation

Hospitality

Professional Services

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Administration

Senior Management

Finance

Payroll

Operations

Relevant Roles

HR Director

HR Manager

Legal Counsel

Compliance Officer

Human Resources Business Partner

Employee Relations Manager

HR Administrative Officer

Compensation and Benefits Manager

Labor Relations Specialist

Chief Human Resources Officer

HR Operations Manager

HR Coordinator

Department Manager

General Manager

Chief Executive Officer

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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