The Layoff Letter To Employee is a crucial document used in Indonesian employment termination processes when companies need to reduce their workforce due to various business reasons such as economic conditions, restructuring, or operational changes. This document must strictly adhere to Indonesian labor laws, particularly the Manpower Law (Law No. 13 of 2003) and the Job Creation Law (Law No. 11 of 2020). It serves as the official written notification of employment termination, detailing the grounds for layoff, effective date, severance package calculations, and other entitlements as mandated by law. The letter forms part of the formal documentation required for legal compliance and may be necessary in case of future labor disputes or legal proceedings.
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1. Company Letterhead and Date: Official company letterhead including company details and the date of the letter
2. Employee Details: Full name, employee ID, position, and department of the employee being terminated
3. Subject Line: Clear indication that this is a termination/layoff notice
4. Termination Statement: Clear statement of employment termination including the effective date
5. Reason for Layoff: Explanation of the business circumstances or reorganization leading to the layoff
6. Severance Details: Breakdown of severance pay, service pay, and other compensation as per Indonesian law
7. Final Payments: Information about final salary, unused leave payments, and other entitled benefits
8. Company Property: List of company properties to be returned and process for return
9. Signature Block: Space for authorized company representative's signature and employee acknowledgment
1. Transition Period: Include when there is a notice period or transition period before the effective termination date
2. Outplacement Support: Include when the company offers job search assistance or career transition support
3. Non-Compete Reminder: Include when the employee has existing non-compete obligations that continue post-employment
4. Reference Provision: Include when the company is willing to provide employment references
5. Healthcare Benefits Extension: Include when there are continuing health benefits or BPJS arrangements
6. Rehire Eligibility: Include when specifying whether the employee is eligible for future re-employment
1. Severance Calculation Sheet: Detailed calculation of severance pay, long service pay, and other compensation components as per Indonesian labor law
2. Final Settlement Statement: Comprehensive list of all final payments including salary, benefits, and deductions
3. Company Property Checklist: Itemized list of company assets to be returned
4. Employee Clearance Form: Form for obtaining clearance from various departments before final settlement
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