The Employee Clearance Letter is a critical document in Indonesian employment practice, required when an employee leaves an organization whether through resignation, retirement, or termination. This document, mandated by Indonesian labor regulations and best practices, serves multiple purposes: it protects both employer and employee by documenting the formal conclusion of the employment relationship, confirms the return of company property, verifies settlement of financial obligations, and ensures compliance with local employment laws. The letter typically includes confirmations from various departments, details of final settlements, and acknowledgment of ongoing obligations such as confidentiality. Under Indonesian employment law, particularly the Manpower Law (UU No. 13/2003), such documentation is essential for proper employment termination and may be required for future reference or legal purposes.
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1. Letter Header and Date: Company letterhead, reference number, and date of issuance
2. Employee Information: Full name, employee ID, position/title, department, and dates of employment
3. Purpose Statement: Clear statement indicating this is an employment clearance letter
4. Clearance Confirmations: List of departments/areas from which clearance has been obtained (HR, Finance, IT, etc.)
5. Company Property Return: Confirmation of return of all company property, equipment, and documents
6. Financial Settlements: Confirmation that all financial matters have been settled, including final payments
7. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
8. General Release Statement: Statement confirming mutual settlement of all obligations
9. Authorization: Signature of authorized company representative and company stamp
1. Exit Interview Reference: Include when an exit interview was conducted and needs to be referenced
2. Project Handover Status: Include for employees who managed specific projects requiring formal handover
3. Non-Compete Reminder: Include when the employee was subject to non-compete agreements
4. Benefits Continuation: Include when there are post-employment benefits or insurance continuations
5. Reference Provision: Include when the company agrees to provide employment references
6. Outstanding Training Bonds: Include when dealing with employees who had training bonds or similar commitments
1. Property Return Checklist: Detailed list of company property returned by the employee
2. Final Settlement Statement: Breakdown of final payments, deductions, and settlements
3. Department Clearance Forms: Individual clearance forms from relevant departments
4. Handover Documentation: Details of work responsibilities handed over and to whom
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Telecommunications
Professional Services
Hospitality
Transportation
Energy
Public Sector
Relevant Teams
Human Resources
Legal
Finance
Administration
Compliance
Corporate Secretariat
Employee Relations
Operations
Department Management
Relevant Roles
Human Resources Manager
HR Director
Legal Counsel
Compliance Officer
HR Administrator
Personnel Manager
HR Operations Manager
Employee Relations Manager
HR Business Partner
Administrative Manager
Office Manager
Department Head
Finance Manager
Corporate Secretary
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