The Confirmation of Termination Letter is a crucial document in Indonesian employment practices, required under Law No. 13 of 2003 on Manpower and its amendments. This document is used when an employment relationship is being formally terminated, whether through mutual agreement, resignation, retirement, or employer-initiated termination. The letter serves multiple purposes: it provides written confirmation of the employment termination, documents the terms of separation, specifies final payments and benefits, and outlines any continuing obligations. The document must comply with strict Indonesian labor law requirements regarding content, timing, and format. It forms part of the official employment records and may be required in future legal proceedings or administrative matters.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Details: Full name, employee ID, position/title, and department of the employee
3. Termination Statement: Clear and unambiguous statement confirming the termination of employment and its effective date
4. Reason for Termination: Brief statement of the legal basis and specific reason for termination in accordance with Indonesian labor law
5. Final Settlement Details: Information about final salary, severance pay, and other entitlements as per Indonesian regulations
6. Company Property Return: List of company properties to be returned and deadline for return
7. Closing Statement: Expression of appreciation and future reference provision if applicable
8. Signature Block: Space for authorized company representative's signature, name, and title
1. Non-Compete Reminder: Include when the employee's contract contained non-compete clauses that survive termination
2. Confidentiality Obligations: Include when reminding the employee of ongoing confidentiality obligations
3. Certificate of Employment: Include when providing or referring to a separate certificate of employment
4. Outstanding Obligations: Include when there are any outstanding loans or obligations to be settled
5. Handover Instructions: Include when specific handover procedures need to be documented
1. Schedule A - Final Settlement Calculation: Detailed breakdown of final payment including salary, severance, and other entitlements
2. Schedule B - Company Property Checklist: Itemized list of company properties to be returned
3. Schedule C - Handover Document List: List of documents and responsibilities to be handed over, if applicable
4. Appendix 1 - Employee Acknowledgment Form: Form for employee to acknowledge receipt and acceptance of termination terms
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