The Service Termination Letter is a crucial document in Indonesian employment law that formalizes the end of an employment relationship. It is used when an employer needs to terminate an employee's services, whether due to performance issues, organizational restructuring, mutual agreement, or other legally permitted grounds. The document must strictly comply with Indonesian labor regulations, particularly the Manpower Law (Law No. 13 of 2003) and its amendments under the Omnibus Law. This letter serves multiple purposes: it provides written documentation of the termination, outlines the terms and conditions of the separation, specifies the final settlement details including statutory entitlements, and helps ensure compliance with legal requirements. The document is particularly important in Indonesia's legal context, where employment termination is heavily regulated and requires specific procedures and calculations for severance payments and other benefits.
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1. Letter Header: Company letterhead including full legal name, address, and contact details
2. Date: The official date of the termination notice
3. Reference Number: Internal reference number for the termination letter
4. Recipient Details: Employee's full name, position, and employee ID number
5. Subject Line: Clear indication that this is a service termination notice
6. Opening Statement: Formal introduction stating the purpose of the letter and reference to the relevant employment contract
7. Termination Details: Specific information about the termination including effective date and grounds for termination
8. Notice Period: Statement of the notice period being given or payment in lieu of notice
9. Final Settlement: Overview of final payments including salary, severance pay, and other entitlements as per Indonesian law
10. Company Property: Instructions regarding the return of company property and handover of work
11. Closing Statement: Professional closure including any appreciation for services rendered
12. Signature Block: Space for authorized signatory's name, title, and signature
1. Non-Compete Reminder: Include if the employee's contract contains non-compete clauses that remain effective after termination
2. Confidentiality Obligations: Include if there are specific confidentiality agreements that continue post-employment
3. Exit Interview: Include if the company wishes to schedule an exit interview
4. Outstanding Loans: Include if there are any outstanding loans or advances to be settled
5. Certificate of Employment: Include if offering to provide a reference or employment certificate
6. Medical Benefits Extension: Include if there are any post-employment medical benefits to be detailed
1. Final Settlement Calculation: Detailed breakdown of all final payments including basic salary, severance pay, service appreciation pay, and other entitlements as per Indonesian labor law
2. Handover Checklist: List of company properties to be returned and pending work to be handed over
3. Employee Clearance Form: Form listing all departments that need to clear the employee before final settlement
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