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Job Elimination Letter for Indonesia

Job Elimination Letter Template for Indonesia

A Job Elimination Letter is a formal document used in Indonesia to notify an employee that their position is being eliminated due to organizational restructuring, economic conditions, or other business reasons. The document must comply with Indonesian Labor Law (UU Ketenagakerjaan) and related regulations, including proper notice periods and severance calculations. It outlines the rationale for the position elimination, termination details, severance package components, and final settlement terms. The letter serves as a legal record of the employment termination while ensuring compliance with Indonesian employment regulations regarding job elimination and worker protection.

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What is a Job Elimination Letter?

The Job Elimination Letter is a crucial document used in Indonesian business contexts when an organization needs to eliminate specific positions due to restructuring, economic conditions, or operational changes. This document must strictly comply with Indonesian Labor Law (UU Ketenagakerjaan) and the Job Creation Law (Omnibus Law), particularly regarding termination procedures and severance calculations. The letter serves multiple purposes: it formally notifies the employee of the position elimination, documents the business justification, outlines the severance package, and specifies transition arrangements. It should be prepared with careful attention to legal requirements, including mandatory notice periods and proper calculation of termination benefits. The document is particularly important in Indonesia's legal context, where employee protection laws are strict and proper documentation is essential for legal compliance.

What sections should be included in a Job Elimination Letter?

1. Company Letterhead and Date: Official company letterhead with complete contact information and date of the letter

2. Employee Information: Full name, employee ID, position, and department of the affected employee

3. Subject Line: Clear indication that this is a Job Elimination Notice

4. Business Context: Explanation of the business circumstances leading to the position elimination (e.g., restructuring, economic conditions)

5. Termination Notice: Clear statement of the position elimination and effective date of termination

6. Severance Package Details: Comprehensive breakdown of the severance package as per Indonesian Labor Law, including basic severance pay, service appreciation pay, and compensation of rights

7. Final Payments: Details of final salary, unused leave payments, and other outstanding compensations

8. Company Property: Instructions regarding the return of company property and handling of work responsibilities

9. Continuation of Benefits: Information about any benefits that continue post-employment and for what duration

10. Closing and Signatures: Formal closing, space for signatures of authorized company representative and acknowledgment by employee

What sections are optional to include in a Job Elimination Letter?

1. Outplacement Support: Details of any career transition or outplacement services being offered

2. Reference Letter Offer: Information about providing employment references or recommendation letters

3. Non-Compete/Confidentiality Reminder: Reminder of any ongoing obligations regarding confidentiality or non-compete agreements

4. Transition Period: If applicable, details of any transition period before final termination

5. Release Agreement: Reference to any separate release or settlement agreement, if applicable

What schedules should be included in a Job Elimination Letter?

1. Severance Calculation Schedule: Detailed calculation of severance pay components as per Indonesian Labor Law

2. Benefits Summary: Comprehensive list of benefits and their treatment post-termination

3. Company Property Checklist: List of company assets to be returned

4. Exit Process Checklist: Step-by-step guide for completing the exit process

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

Mining

Construction

Telecommunications

Professional Services

Hospitality

Energy

Agriculture

Transportation

Consumer Goods

Relevant Teams

Human Resources

Legal

Executive Leadership

Industrial Relations

Compensation and Benefits

Employee Relations

Operations

Finance

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Chief Human Resources Officer

Employment Law Specialist

HR Business Partner

Compensation and Benefits Manager

Employee Relations Manager

HR Operations Manager

Chief Executive Officer

Chief Operating Officer

Department Directors

Line Managers

Industrial Relations Manager

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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