The Cessation Letter is a crucial document in Indonesian employment relations, used to formally document the termination of employment between an employer and employee. It must be drafted in compliance with Indonesian Labor Law, particularly Law No. 13 of 2003 on Manpower (as amended) and its implementing regulations. The letter is required whenever an employment relationship is terminated, whether by mutual agreement, resignation, retirement, or termination for cause. It serves multiple purposes: documenting the termination date, specifying final payments and benefits, outlining the return of company property, and reminding of post-employment obligations. The Cessation Letter also helps protect both employer and employee by clearly stating the terms of separation and can be crucial documentation in case of future disputes.
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1. Header and Date: Company letterhead, date, and reference number of the letter
2. Recipient Details: Employee's full name, position, and employment ID number
3. Subject Line: Clear indication that this is an employment cessation letter
4. Employment History Reference: Reference to original employment agreement date and current position
5. Cessation Statement: Clear statement of employment termination with specific end date
6. Legal Basis: Reference to relevant provisions of employment agreement and Indonesian Labor Law
7. Final Settlements: Overview of final payment including salary, severance, and other entitlements
8. Company Property Return: List of company properties to be returned
9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
10. Signature Block: Space for authorized signatory's name, title, and signature
1. Reason for Termination: Include when termination is due to specific cause or mutual agreement
2. Transition Arrangements: Include when handover of duties is required
3. Non-Compete Reminder: Include if the original employment agreement contained non-compete provisions
4. Reference Offer: Include if company is willing to provide employment references
5. Mutual Release: Include when termination is by mutual agreement and includes settlement of all claims
1. Final Settlement Calculation: Detailed breakdown of all final payments including salary, severance, and other entitlements
2. Company Property Checklist: Itemized list of company properties to be returned
3. Employee Clearance Form: Form listing all departments that need to clear the employee
4. Handover Document Template: Template for documenting handover of responsibilities if applicable
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