A Notice To Terminate An Employment Contract is a crucial document used in Indonesian employment relations when an employer needs to formally end an employment relationship. This document must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under Law No. 11 of 2020. It is used when employment termination is necessary due to various reasons such as company restructuring, performance issues, or mutual agreement. The notice must include specific elements required by Indonesian law, including proper notice periods, clear grounds for termination, and details of final settlements including severance pay calculations. This document serves as a legal record of the termination process and helps ensure compliance with local employment regulations while protecting both employer and employee rights.
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1. Letter Header: Company letterhead including full legal name, address, and contact details
2. Date: The date when the notice is issued
3. Employee Details: Full name, employee ID, position, and department of the employee
4. Subject Line: Clear indication that this is a Notice of Employment Termination
5. Notice Period: Specification of the notice period and the effective date of termination
6. Reason for Termination: Clear statement of the legal grounds for termination in accordance with Indonesian labor law
7. Final Settlement Details: Information about final salary, severance pay, and other entitlements as per Indonesian regulations
8. Company Property Return: List of company properties to be returned before the last day
9. Signature Block: Authorized signatory details including name, title, and company stamp
1. Transition Plan: Details of handover responsibilities and transition arrangements, used when the position requires significant handover
2. Non-Compete Reminder: Reminder of existing non-compete obligations, used when the employee has signed such agreements
3. Reference Offer: Statement about providing references, used when company policy allows for references
4. Exit Interview: Information about exit interview arrangements, used for senior positions or when company policy requires it
5. Continuation of Benefits: Details about any benefits that continue post-employment, used when applicable under company policy
1. Calculation of Final Settlement: Detailed breakdown of final payment including salary, severance, and other entitlements as per Indonesian labor law
2. Company Property Checklist: Itemized list of company assets to be returned
3. Employment Benefits Summary: Summary of benefits status and terminal dates
4. Handover Document Template: Standard template for documenting handover of responsibilities
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