The Layoff Letter Due To Lack Of Work is a crucial document used in Indonesian business operations when companies need to terminate employment relationships due to business downturn, restructuring, or efficiency measures. This document must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020) and Minister of Manpower Regulation No. 3 of 2021. The letter serves as official documentation of the termination, outlining the reason for layoff, effective date, severance calculations, and final settlement details. It's essential for protecting both employer and employee rights, ensuring proper documentation for legal purposes, and maintaining professional standards in the termination process. The document must be carefully drafted to include all mandatory elements required by Indonesian law while maintaining clarity and professionalism.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee including their full name, employee ID, and current position
2. Subject Line: Clear indication that this is a termination notice due to lack of work/business conditions
3. Opening Statement: Professional opening acknowledging the employee's service and introducing the purpose of the letter
4. Reason for Termination: Clear explanation of the business circumstances leading to the layoff, including lack of work and any relevant business conditions
5. Effective Date: Specific termination date and notice period details in compliance with Indonesian labor law
6. Severance Package: Detailed breakdown of severance pay, service appreciation pay, and compensation of rights as per Indonesian labor regulations
7. Final Payments: Information about final salary, unused leave payments, and other outstanding compensations
8. Company Property: Instructions regarding the return of company property and handling of company documents
9. Closing Statement: Expression of gratitude for service and well wishes for the future
10. Signature Block: Space for authorized company representative's signature, name, and title
1. Outplacement Support: Details of any career transition services or job search assistance being offered
2. Reference Letter Offer: Information about providing employment references or recommendation letters
3. Extended Benefits: Any additional benefits beyond statutory requirements that the company is offering
4. Non-Disclosure Reminder: Reminder of ongoing confidentiality obligations, if applicable
5. Appeal Process: Information about internal grievance procedures or appeal rights
6. Exit Interview: Details about exit interview arrangements if the company wishes to conduct one
1. Severance Calculation Sheet: Detailed calculations of severance pay, appreciation pay, and other benefits as per Indonesian labor law
2. Final Settlement Statement: Comprehensive list of all final payments including salary, benefits, and deductions
3. Company Property Checklist: List of company items to be returned before final clearance
4. Benefits Continuation Summary: Details of any benefits that continue post-employment and their duration
5. Employee Clearance Form: Form listing all departments that need to provide clearance before final settlement
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Compliance
Employee Relations
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