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Company Release Letter To Employee for Indonesia

Company Release Letter To Employee Template for Indonesia

A Company Release Letter To Employee is a formal document issued under Indonesian labor law that officially terminates an employment relationship between a company and its employee. The document must comply with Indonesian Manpower Law (Law No. 13/2003) and the Omnibus Law (Law No. 11/2020), including specific provisions regarding termination procedures, notice periods, and employee entitlements. It serves as official documentation of employment termination, outlining the terms of separation, including final settlements, ongoing obligations, and the return of company property. The letter must be drafted in accordance with local labor regulations and typically includes calculations of mandatory severance payments and other benefits as prescribed by Indonesian law.

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Company Release Letter To Employee

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What is a Company Release Letter To Employee?

A Company Release Letter To Employee is a crucial document in Indonesian employment law that formalizes the termination of employment between an organization and its employee. This document is typically used when an employment relationship is being terminated, whether through mutual agreement, resignation, retirement, or company-initiated separation. The letter must strictly comply with Indonesian labor laws, particularly the Manpower Law (Law No. 13/2003) and the Omnibus Law (Law No. 11/2020), which govern employment termination procedures. It serves multiple purposes: officially documenting the termination, specifying the effective date, detailing final settlements and benefits, outlining any continuing obligations, and protecting both parties' interests. The document should be prepared with careful attention to legal requirements and typically requires review by HR and legal professionals to ensure compliance with all applicable regulations.

What sections should be included in a Company Release Letter To Employee?

1. Company Letterhead: Official company letterhead including company name, address, and registration details

2. Reference Number and Date: Unique reference number and date of the letter issuance

3. Employee Details: Full name, employee ID, position, and department of the employee

4. Subject Line: Clear indication that this is a release/termination letter

5. Termination Statement: Clear statement of employment termination including the effective date

6. Legal Basis: Reference to relevant Indonesian labor laws and company regulations supporting the termination

7. Rights and Entitlements: Details of final payments including salary, severance pay, and other entitlements as per law

8. Company Property: List of company properties to be returned and deadline for return

9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

10. Signature Block: Space for authorized company representative's signature, name, and title

What sections are optional to include in a Company Release Letter To Employee?

1. Certificate of Employment: Offer to provide a certificate of employment upon request

2. Non-Compete Clause: Include when the employee had access to sensitive information or key clients

3. Transition Handover: Include when the employee needs to hand over specific duties or projects

4. Reference Provision: Include when the company is willing to provide employment references

5. Medical Insurance Extension: Include when applicable for continuing medical benefits

6. Mutual Release: Include when both parties agree to release each other from future claims

What schedules should be included in a Company Release Letter To Employee?

1. Calculation of Final Payments: Detailed breakdown of all final payments including basic salary, severance, and other benefits

2. Company Property Checklist: Itemized list of company properties to be returned

3. Exit Interview Form: Standard form for conducting exit interview

4. Handover Checklist: Detailed list of tasks, documents, and responsibilities to be handed over

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Corporate Secretariat

Executive Management

Employee Relations

Relevant Roles

HR Manager

HR Director

Legal Counsel

Company Secretary

Managing Director

Chief Executive Officer

HR Business Partner

Employee Relations Manager

Legal Manager

Compliance Officer

HR Operations Manager

Chief Human Resources Officer

Industrial Relations Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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