A Business Closure Letter To Employees is a crucial document required when a company in Indonesia decides to cease operations. This formal communication must comply with Indonesian Manpower Law and related regulations, including the Job Creation Law of 2020. The document is essential for proper workforce management during business closure, ensuring transparent communication about the closure process, timeline, and impact on employees. It should be used when a company has made the final decision to close operations and needs to formally notify employees while ensuring compliance with legal requirements regarding notice periods, severance payments, and other statutory obligations. The letter serves multiple purposes: it provides official notification, outlines the closure process, details severance arrangements, explains final benefit calculations, and provides information about support measures for affected employees.
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1. Company Letterhead and Date: Official company letterhead including company name, address, and the date of the letter
2. Employee's Personal Information: Individual employee's name, position, and employee ID number
3. Announcement of Closure: Clear statement of the business closure decision and the effective date
4. Reason for Closure: Brief, honest explanation of the circumstances leading to the business closure
5. Timeline: Key dates including last working day, closure process timeline, and important deadlines
6. Severance and Benefits Information: Overview of severance package, final salary, and treatment of existing benefits
7. Final Responsibilities: Information about handling ongoing work, company property return, and exit procedures
8. Contact Information: Details of who to contact for questions or concerns
9. Acknowledgment and Signature: Space for both employer and employee signatures
1. Outplacement Support: Information about any job search assistance or career transition support being offered
2. Reference Letters: Details about the company's policy on providing references and recommendation letters
3. Continuation of Medical Benefits: Information about any extended medical coverage or BPJS transition arrangements
4. Employee Assistance Program: Details of any psychological or counseling support services available during the transition
5. Transfer Opportunities: Information about any possible transfers to affiliated companies or partner organizations
6. Training Programs: Details of any skill development or certification programs being offered to assist with transition
1. Severance Calculation Sheet: Detailed breakdown of severance payment calculation as per Indonesian labor laws
2. Benefits Summary: Comprehensive list of final benefits, including prorated bonuses and unused leave
3. Exit Checklist: List of tasks and items to be completed before the last working day
4. Important Contacts List: Contact information for HR, benefits administration, and other relevant departments
5. FAQ Sheet: Common questions and answers about the closure process and employee rights
6. Document Return Form: Checklist of company documents and property to be returned
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Technology
Services
Construction
Hospitality
Finance
Education
Healthcare
Mining
Agriculture
Transportation
Telecommunications
Real Estate
Energy
Relevant Teams
Human Resources
Legal
Finance
Executive Leadership
Operations
Administration
Compliance
Industrial Relations
Risk Management
Corporate Communications
Relevant Roles
Chief Executive Officer
Managing Director
Human Resources Director
Legal Counsel
Chief Financial Officer
HR Manager
Operations Manager
Employee Relations Manager
Compliance Officer
Administrative Manager
Business Unit Head
Department Manager
Company Secretary
Risk Manager
Industrial Relations Manager
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