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Letter Of Termination Of Service for Indonesia

Letter Of Termination Of Service Template for Indonesia

A formal document governed by Indonesian labor law, specifically Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020), that officially terminates an employment relationship. The document outlines the terms of separation, including the effective date, reasons for termination, final settlement details, and post-employment obligations. It must comply with Indonesian legal requirements regarding notice periods, severance calculations, and proper documentation of the termination process. The letter serves as a legal record of the employment termination and details all financial entitlements and obligations of both parties.

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What is a Letter Of Termination Of Service?

The Letter of Termination of Service is a crucial document used in Indonesian employment relationships when an employer needs to formally end an employment contract. This document must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. It is used in situations including performance-based termination, redundancy, retirement, or mutual separation agreements. The letter must include specific elements required by Indonesian law, such as the termination reason, effective date, calculation of severance payments, and other statutory entitlements. These requirements make it essential for employers to carefully prepare the Letter of Termination of Service to ensure legal compliance and minimize the risk of disputes in the Indonesian Industrial Relations Court.

What sections should be included in a Letter Of Termination Of Service?

1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting

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

3. Subject Line: Clear indication that this is a termination of service notice

4. Opening Statement: Reference to employment contract and formal notification of termination decision

5. Termination Details: Effective date of termination and legal basis for termination under Indonesian Labor Law

6. Final Settlement Information: Details of final salary, severance pay, and other entitled benefits as per Law No. 13 of 2003

7. Company Property Return: List of company properties to be returned and deadline for return

8. Closing Statement: Expression of appreciation for service and professional closure

9. Signature Block: Authorized signatory details, company stamp, and space for acknowledgment

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

1. Non-Compete Reminder: Include when the employee's contract contains non-compete clauses that remain effective after termination

2. Handover Instructions: Include when the employee needs to transfer ongoing projects or responsibilities

3. Exit Interview: Include when company policy requires an exit interview process

4. Reference Provision: Include when the company agrees to provide employment references

5. Medical Benefits Extension: Include when applicable for continuation of medical benefits

6. Mutual Release Clause: Include when both parties agree to release each other from future claims

What schedules should be included in a Letter Of Termination Of Service?

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

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

3. Handover Document List: List of documents and files to be handed over, if applicable

4. Benefits Summary: Summary of post-employment benefits and their duration

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions




















Clauses

















Relevant Industries

Manufacturing

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Financial Services

Retail

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Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Corporate Secretariat

Senior Management

Operations

Administration

Relevant Roles

HR Manager

Legal Counsel

HR Director

Department Head

Line Manager

HR Business Partner

HR Operations Manager

Legal Manager

Compliance Officer

Industrial Relations Manager

HR Administrator

Employment Law Specialist

HR Generalist

Company Secretary

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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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