The Service Termination Letter To Employee is a crucial document in Indonesian employment relations, required under Law No. 13 of 2003 on Manpower and its amendments. It serves as the formal written notification of employment termination and must be issued in compliance with strict local labor regulations. This document is used when an employer needs to terminate an employee's service for various reasons including but not limited to performance issues, misconduct, redundancy, or business restructuring. The letter must include specific elements such as termination grounds, effective date, notice period details, and comprehensive information about final settlements including severance pay, service appreciation pay, and other entitlements as prescribed by Indonesian law. Proper documentation and delivery of this letter is essential to minimize legal risks and ensure compliance with local employment regulations.
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1. Header and Date: Company letterhead, date, and reference number of the letter
2. Employee Details: Full name, employee ID, position, and department of the employee
3. Subject Line: Clear indication that this is a termination notice
4. Termination Statement: Clear statement of employment termination and effective date
5. Reason for Termination: Legal basis and specific reason for termination in accordance with Indonesian labor law
6. Notice Period: Information about the notice period or payment in lieu of notice
7. Final Settlement Details: Breakdown of final payment including salary, severance pay, and other entitlements
8. Company Property: Request for return of company properties and documents
9. Closing Statement: Expression of appreciation and formal closure
10. Signature Block: Space for authorized signatory and company stamp
1. Misconduct Details: Used when termination is due to serious misconduct, outlining specific incidents and violations
2. Performance Issues: Used when termination is due to poor performance, summarizing previous warnings and improvement opportunities
3. Redundancy Information: Used in case of position elimination, explaining the business reasons
4. Transition Responsibilities: Used when handover of duties is required, detailing transition expectations
5. Non-Compete Reminder: Used when employee is bound by non-compete agreements, restating key obligations
6. Outplacement Support: Used when company provides career transition assistance
1. Final Settlement Calculation: Detailed breakdown of all payment components including basic salary, severance, and other benefits
2. Company Property Checklist: List of company assets to be returned
3. Previous Warning Letters: Copies of relevant warning letters in case of performance-based termination
4. Exit Process Checklist: Checklist of administrative tasks to be completed before last day
5. Benefits Continuation Summary: Details of any benefits that continue post-employment
Relevant legal definitions
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Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Hospitality
Transportation
Professional Services
Telecommunications
Energy
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Senior Management
Operations
Administration
Employee Relations
Industrial Relations
Relevant Roles
HR Director
HR Manager
Legal Counsel
Department Head
Line Manager
Chief Human Resources Officer
Employee Relations Manager
HR Business Partner
Compliance Officer
Managing Director
Chief Executive Officer
General Manager
Operations Manager
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