The Employment Contract Cancellation Letter is a crucial document used in Indonesian employment relations when formally terminating an employment relationship. It must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law No. 11 of 2020) and related ministerial regulations. This document is used in various scenarios including voluntary resignations, mutual agreement terminations, or company-initiated terminations. It should include essential elements such as termination date, basis for termination, final settlement details, and post-employment obligations. The letter serves as official documentation for both legal compliance and future reference, protecting both employer and employee interests during the separation process.
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1. Letter Header and Date: Company letterhead, date, and reference number of the letter
2. Recipient Details: Employee's full name, position, and employee ID number
3. Subject Line: Clear indication that this is an employment contract cancellation/termination letter
4. Opening Statement: Reference to the employment contract and its initial date
5. Termination Notice: Clear statement of the employment termination and effective date
6. Legal Basis: Reference to relevant provisions of Indonesian labor law and/or employment contract
7. Final Settlement Details: Information about final salary, severance pay, and other entitlements
8. Company Property: Request for return of company properties and documents
9. Closing Statement: Expression of appreciation and future reference provision
10. Signature Block: Space for authorized signatory's name, title, and signature
1. Reason for Termination: Detailed explanation of termination reason - included when termination is due to specific cause or misconduct
2. Mutual Agreement Statement: Statement of mutual consent - included when termination is by mutual agreement
3. Non-Compete/Confidentiality Reminder: Reminder of ongoing obligations - included when original contract contained these provisions
4. Outplacement Support: Details of any career transition support - included when company provides such benefits
5. Dispute Resolution: Specific dispute resolution procedures - included in cases of potential conflict
6. Benefits Continuation: Information about post-employment benefits - included when applicable
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, severance, and other entitlements
2. Company Property Checklist: List of company items to be returned
3. Employee Clearance Form: Form for obtaining clearance from various departments
4. Exit Interview Form: Documentation of exit interview if conducted
5. Handover Notes Template: Template for documenting handover of responsibilities
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