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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.

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