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Redundancy Notice Letter for Indonesia

Redundancy Notice Letter Template for Indonesia

A formal written notice issued under Indonesian labor law to inform an employee about the termination of their employment due to redundancy. The document complies with Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020) and related regulations, detailing the terms of separation, including notice period, severance package, and final settlements. It serves as an official record of the redundancy decision and outlines all statutory entitlements and obligations of both parties during the transition period.

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What is a Redundancy Notice Letter?

The Redundancy Notice Letter is a crucial document used when an organization needs to terminate employment relationships due to business restructuring, economic conditions, technological changes, or other organizational changes that make certain positions redundant. Under Indonesian law, particularly Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020), employers must provide proper written notice and follow specific procedures when implementing redundancies. This document serves as the formal communication of the redundancy decision, outlining the legal basis, severance entitlements, notice period, and other relevant details required by Indonesian labor regulations. It helps ensure compliance with legal requirements while maintaining clear communication with affected employees regarding their rights and the process moving forward.

What sections should be included in a Redundancy Notice Letter?

1. Letter Header: Company letterhead, date, and reference number

2. Employee Details: Full name, employee ID, position, and department of the affected employee

3. Notice of Redundancy: Clear statement of redundancy decision and effective date

4. Reason for Redundancy: Brief explanation of the business circumstances leading to the redundancy

5. Notice Period: Details of the notice period and last working day

6. Severance Package: Overview of severance pay, service appreciation pay, and other compensation as per Indonesian law

7. Return of Company Property: Instructions regarding the return of company assets and documents

8. Final Settlement: Information about final salary, unused leave payments, and timing of final settlements

9. Continuation of Benefits: Information about any benefits that continue post-employment

10. Contact Information: HR contact details for queries and support

11. Signature Block: Space for authorized signatory and company stamp

What sections are optional to include in a Redundancy Notice Letter?

1. Outplacement Support: Details of any career transition services offered by the company

2. Reference Letter: Mention of providing a reference letter if company policy allows

3. Non-Compete/Confidentiality Reminder: Reminder of ongoing obligations regarding confidentiality and non-compete if applicable

4. Re-employment Rights: Information about potential future re-employment if business circumstances change

5. Acknowledgment Section: Space for employee signature to acknowledge receipt of the notice

What schedules should be included in a Redundancy Notice Letter?

1. Severance Calculation Sheet: Detailed breakdown of severance package calculation as per Indonesian labor law

2. Benefits Summary: Summary of all benefits and their treatment post-termination

3. Handover Checklist: List of company properties to be returned and handover procedures

4. Exit Process Guide: Step-by-step guide for the employee's exit process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Mining

Construction

Healthcare

Education

Telecommunications

Hospitality

Agriculture

Transportation

Energy

Professional Services

Media and Entertainment

Relevant Teams

Human Resources

Legal

Industrial Relations

Employee Relations

Compensation and Benefits

Operations

Management

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

HR Business Partner

Employee Relations Manager

Compensation and Benefits Manager

HR Operations Manager

Legal Manager

Chief Human Resources Officer

HR Administrator

Industrial Relations Manager

Talent Management Director

HR Specialist

Chief Legal Officer

Department Head

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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