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Employee Release Letter for Indonesia

Employee Release Letter Template for Indonesia

An Employee Release Letter is a formal document issued under Indonesian labor law that confirms the acceptance of an employee's resignation and their clearance from company obligations. The document serves as official confirmation of employment termination, incorporating requirements under Law No. 13 of 2003 on Manpower and the Omnibus Law (Law No. 11 of 2020). It includes confirmation of the return of company property, settlement of final payments, and mutual release of obligations. The letter also documents compliance with Indonesian employment regulations regarding proper termination procedures and final settlements.

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What is a Employee Release Letter?

The Employee Release Letter is a crucial document in Indonesian employment practice, required when an employee voluntarily resigns from their position and needs formal clearance from their employer. It serves multiple purposes under Indonesian labor law, including documenting the formal acceptance of resignation, confirming the completion of handover procedures, and establishing the final settlement of employment-related obligations. This document is particularly important in the Indonesian context as it provides legal protection for both employers and employees, ensuring compliance with Law No. 13 of 2003 on Manpower and related regulations. The letter typically includes details about final payments, returned company property, and any continuing obligations such as confidentiality requirements. It's essential for proper employment termination documentation and may be required for future employment verification or legal purposes.

What sections should be included in a Employee Release Letter?

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

2. Reference Number: Unique letter reference number following company convention

3. Date: Date of letter issuance

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

5. Resignation Acknowledgment: Formal acknowledgment of the employee's resignation letter and its effective date

6. Clearance Confirmation: Confirmation that all company properties have been returned and pending tasks have been properly handed over

7. Final Settlement Statement: Statement regarding the settlement of final payments, including salary, unused leave, and other entitlements

8. Release Declaration: Statement releasing both parties from further employment obligations

9. Appreciation Statement: Expression of gratitude for the employee's service

10. Authorization: Signature block for authorized company representative with name and title

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

1. Non-Compete Reminder: Include when the employee has existing non-compete obligations that survive employment termination

2. Confidentiality Reminder: Include when reminding the employee of ongoing confidentiality obligations

3. Reference Provision: Include when the company agrees to provide employment references

4. Benefits Continuation: Include when there are post-employment benefits or insurance coverage details to address

5. Outstanding Obligations: Include when there are specific outstanding matters or obligations to be addressed

What schedules should be included in a Employee Release Letter?

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, leave encashment, and other entitlements

2. Handover Checklist: List of company properties and documents returned by the employee

3. Department Clearance Form: Signatures from relevant department heads confirming clearance

4. Benefits Summary: Summary of any continuing benefits or insurance coverage post-employment

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

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions














Clauses


















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Mining

Agriculture

Telecommunications

Hospitality

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Finance

Administration

Corporate Secretariat

Payroll

Relevant Roles

Human Resources Manager

HR Director

Legal Counsel

Compliance Officer

HR Business Partner

Employment Law Specialist

HR Administrator

Payroll Manager

HR Operations Manager

Company Secretary

Legal Manager

HR Executive

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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