A Position Elimination Letter is a crucial document used when an organization needs to terminate employment relationships due to organizational restructuring, business downsizing, or operational changes. This document, governed by Indonesian labor laws including the Job Creation Law (Omnibus Law) and its implementing regulations, serves as the formal notification of employment termination due to position elimination. It is essential for ensuring legal compliance in Indonesia, where employment termination must follow specific procedures and include mandatory components such as severance calculations and notice periods. The letter should be prepared with careful consideration of both legal requirements and professional courtesy, typically requiring input from Human Resources, Legal, and senior management. It forms part of the official termination documentation and may be required in case of any future dispute resolution proceedings.
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1. Letter Header and Date: Company letterhead, date, and reference number
2. Employee Details: Full name, employee ID, position, and department of the affected employee
3. Subject Line: Clear indication that this is a Position Elimination Notice
4. Business Context: Brief explanation of the business circumstances leading to the position elimination (restructuring, economic conditions, etc.)
5. Formal Notice: Clear statement of the position elimination and resulting termination of employment
6. Effective Date: Specification of the last day of employment
7. Statutory Entitlements: Details of severance pay, service pay, and other mandatory payments as per Indonesian labor laws
8. Return of Company Property: Instructions regarding the return of company assets and documents
9. Final Settlement: Information about the final salary payment and timing
10. Closing: Expression of gratitude and professional closing
1. Transition Period: Include when there is a handover period or if the employee will assist in transition activities
2. Outplacement Support: Details of any career transition assistance or job search support being offered
3. Reference Letter Offer: Mention of providing a reference letter if the company policy allows
4. Non-Compete Reminder: Include if the employee has existing non-compete obligations that survive termination
5. Medical Benefits Extension: Include if the company is offering extended medical coverage beyond termination
6. Release Agreement Reference: Include if a separate release agreement will be provided for signing
1. Calculation of Termination Benefits: Detailed breakdown of severance pay, service pay, and other entitlements as per Indonesian labor laws
2. Company Property Checklist: List of company assets to be returned
3. Employee Clearance Form: Document listing all departments that need to clear the employee
4. Benefits Summary: Summary of any continuing or terminating benefits
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Telecommunications
Professional Services
Energy
Transportation
Hospitality
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Industrial Relations
Employee Relations
Risk Management
Corporate Secretariat
Senior Management
Finance
Payroll
Relevant Roles
Human Resources Manager
Legal Counsel
HR Director
Compliance Officer
Industrial Relations Manager
HR Business Partner
Employment Law Specialist
HR Operations Manager
Chief Human Resources Officer
Employee Relations Manager
HR Administrator
Legal Manager
Company Secretary
Risk Management Officer
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