The Notice of Separation of Employment is a crucial document in Indonesian employment relations, required whenever an employment relationship is terminated, whether through resignation, retirement, mutual agreement, or employer-initiated termination. This document must be prepared in accordance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. It serves multiple purposes: officially documenting the termination, specifying the effective date and grounds for separation, detailing final settlements and entitlements, and outlining any continuing obligations. The notice must be issued with proper timing to comply with statutory notice periods and should include all legally required information to ensure the termination process is valid under Indonesian law.
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1. Letter Header: Company letterhead, date, reference number, and formal letter formatting
2. Recipient Details: Employee's full name, employee ID, position, and department
3. Subject Line: Clear indication that this is a Notice of Separation of Employment
4. Opening Statement: Formal opening referring to any prior discussions or agreements regarding the termination
5. Termination Details: Specific information about the separation including effective date and type of termination
6. Reason for Separation: Clear statement of the grounds for termination in accordance with Indonesian Labor Law
7. Final Settlement Details: Information about final salary, severance pay, and other entitlements as per regulations
8. Company Property: List of company properties to be returned and deadline for return
9. Closing Statement: Expression of appreciation and formal closing
10. Signature Block: Authorized signatory details, including name, title, and company stamp
1. Non-Compete Reminder: Include if the employee's contract contains non-compete clauses that remain in effect after termination
2. Confidentiality Obligations: Include if there are specific confidentiality requirements that continue post-employment
3. Handover Instructions: Include if the employee needs to transfer specific responsibilities or projects
4. Exit Interview Details: Include if an exit interview is required as part of the separation process
5. Reference Provision: Include if the company agrees to provide employment references
6. Outstanding Obligations: Include if there are any outstanding loans, advances, or other financial obligations
1. Calculation of Final Settlement: Detailed breakdown of final payment including salary, severance, and other entitlements
2. Company Property Checklist: Itemized list of company assets to be returned
3. Benefits Continuation Summary: Details of any benefits that continue post-employment or their conversion options
4. Handover Document List: List of documents, files, and information to be handed over before departure
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