The Termination For Convenience Letter is a crucial document used in Indonesian employment contexts when an employer needs to end an employment relationship without cause. It must comply with Indonesia's Labor Law (Law No. 13 of 2003 as amended by Law No. 11 of 2020) and related regulations, particularly regarding notice periods and statutory entitlements. This document is typically used during company restructuring, workforce optimization, or strategic changes that don't involve employee performance issues. The letter must include specific elements required by Indonesian law, such as termination date, notice period, calculation of severance pay and other entitlements, and any post-employment obligations. It serves as an official record of the termination decision and helps ensure a clear, professional, and legally compliant separation process.
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1. Letter Header and Date: Company letterhead, date, and reference number of the letter
2. Recipient Details: Employee's full name, position, and address
3. Subject Line: Clear indication that this is a Termination for Convenience Notice
4. Opening Statement: Formal opening and reference to employment agreement/contract
5. Termination Notice: Clear statement of termination decision and effective date, including notice period details
6. Legal Basis: Reference to relevant contract clause and Indonesian labor law provisions allowing termination
7. Financial Entitlements: Overview of severance pay, service pay, and other statutory entitlements
8. Return of Company Property: Requirements for returning company assets and documents
9. Closing Statement: Expression of gratitude and professional closure
10. Signature Block: Company authorized signatory details and signature space
1. Non-Compete/Confidentiality Reminder: Include when employment contract contains post-employment restrictions
2. Handover Process: Include when employee holds critical position requiring formal handover
3. Additional Benefits: Include when company is offering benefits beyond statutory requirements
4. Medical Insurance Extension: Include when applicable for extending health benefits
5. Reference Letter Offer: Include when company is willing to provide employment references
6. Release Agreement Reference: Include when a separate release agreement is required
1. Calculation of Final Payments: Detailed breakdown of severance pay, service pay, and other entitlements
2. Company Property Checklist: List of company assets to be returned
3. Employee Benefits Summary: Summary of benefits and their treatment post-termination
4. Handover Documentation Form: Template for documenting handover of responsibilities
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