The Involuntary Termination Letter is a crucial document in Indonesian employment relations, used when an employer needs to terminate an employee's contract for reasons such as performance issues, misconduct, organizational restructuring, or other legally permitted grounds. It must strictly comply with Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. The document serves multiple purposes: it formally notifies the employee of their termination, documents the legal grounds for termination, outlines the notice period and final settlements, and helps ensure compliance with statutory requirements. In Indonesia's employee-protective legal framework, proper documentation and adherence to legal requirements are essential to minimize the risk of wrongful termination claims.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing to the employee
2. Employee Details: Full name, employee ID, position/title, department, and employment start date
3. Subject Line: Clear indication that this is a termination notice
4. Termination Statement: Clear statement of employment termination including effective date
5. Grounds for Termination: Specific legal basis and factual reasons for termination in accordance with Indonesian labor law
6. Notice Period: Statement of notice period or payment in lieu of notice
7. Final Settlements: Details of final salary, severance pay, service pay, and other entitlements as per Indonesian regulations
8. Company Property: Instructions regarding return of company property and final clearance process
9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
10. Closure: Professional closing statement, signature block for authorized company representative
1. Performance History Summary: Include when termination is performance-based, summarizing key performance issues and previous warnings
2. Transition Arrangements: Include when handover of duties is required, detailing the handover process
3. Outplacement Support: Include when company is offering career transition assistance
4. Non-Compete Reminder: Include when employee is bound by existing non-compete agreements
5. Appeal Process: Include when company policy or collective agreement provides for an appeal mechanism
1. Calculation of Final Settlements: Detailed breakdown of severance pay, service pay, compensation pay, and other entitlements as per Indonesian labor law
2. Handover Checklist: List of company properties to be returned and tasks to be completed before last day
3. Previous Warning Letters: Copies of previous warning letters if termination is due to disciplinary issues
4. Employee Clearance Form: Form listing all departments that need to clear the employee before final settlement
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