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A Pre Termination Contract Letter is a mandatory document under Indonesian employment law when an employer intends to terminate an employment relationship. This document is typically used when termination is being considered due to various reasons such as performance issues, organizational restructuring, or mutual agreement. It must be drafted in accordance with Law No. 13 of 2003 on Manpower and related regulations, including the Job Creation Law No. 11 of 2020. The letter serves multiple purposes: it formally notifies the employee of the intended termination, establishes the legal basis for the action, outlines the notice period and transition arrangements, and details all financial entitlements under Indonesian law. The document is crucial for ensuring procedural fairness and legal compliance, while also protecting both parties' rights during the termination process.

1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting

2. Recipient Details: Employee's full name, employee ID, position, and department

3. Subject Line: Clear indication that this is a Pre-Termination Notice

4. Opening Statement: Reference to employment contract and current employment status

5. Termination Notice: Clear statement of intended termination and proposed effective date

6. Legal Basis: Reference to relevant provisions of employment contract and Indonesian labor law

7. Transition Period Details: Specification of the notice period and expected duties during this time

8. Financial Entitlements: Overview of severance pay, service pay, and other compensation as per regulations

9. Company Property: Instructions regarding return of company assets and handover process

10. Closing Statement: Request for acknowledgment and contact details for further discussion

11. Signature Block: Authorized signatory details and company stamp