The Dismissal Letter is a critical document used in Indonesian employment relations when terminating an employment relationship. It must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020) and related implementing regulations. The document is required whenever an employer terminates an employee's employment, whether due to performance issues, redundancy, misconduct, or other legally acceptable grounds. The letter must include specific elements mandated by law, such as the reason for termination, effective date, calculation of termination benefits, and other relevant details. It serves as both a formal notification and a legal document that may be scrutinized in case of labor disputes, making it essential for proper documentation and compliance with Indonesian employment regulations.
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1. Header and Date: Company letterhead, reference number, date, and formal letter formatting
2. Employee Information: Full name, employee ID, position, department, and length of service
3. Termination Statement: Clear statement of employment termination and its effective date
4. Legal Basis: Reference to relevant provisions of Indonesian Labor Law and company regulations justifying the termination
5. Reason for Termination: Detailed explanation of the grounds for termination in accordance with applicable laws
6. Financial Entitlements: Breakdown of all termination payments including severance, service appreciation pay, and compensation rights
7. Company Property: List of company assets to be returned and deadline for return
8. Final Clearance: Process for obtaining clearance from relevant departments
9. Closing: Formal closing statement, including any acknowledgment requirements
1. Performance History: Include when termination is performance-based, summarizing previous warnings and improvement opportunities
2. Non-Compete Clause: Include when employee had access to sensitive information or senior position
3. Reference Provision: Include when company agrees to provide employment references
4. Mutual Release: Include when both parties agree to release each other from future claims
5. Transition Requirements: Include when handover of duties is required before departure
6. Confidentiality Reminder: Include when employee had access to confidential information
1. Calculation of Terminal Benefits: Detailed breakdown of severance pay, service appreciation pay, and other entitlements
2. Handover Checklist: List of company properties to be returned and tasks to be completed
3. Previous Warning Letters: Copies of relevant warning letters or performance improvement plans (if applicable)
4. Exit Interview Form: Standard form for conducting and documenting the exit interview
5. Clearance Form: Department-wise clearance checklist to be completed before final settlement
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Relevant Teams
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