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Termination Letter With Cause for Indonesia

Termination Letter With Cause Template for Indonesia

A formal employment termination document governed by Indonesian labor law, specifically Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law). This document serves to formally end an employment relationship due to specific causes or violations, detailing the grounds for termination, effective date, and final settlement terms. It must comply with Indonesian legal requirements regarding termination procedures, including proper documentation of cause, reference to prior warnings if applicable, and calculation of mandatory severance payments and other entitlements as prescribed by law.

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Termination Letter With Cause

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What is a Termination Letter With Cause?

The Termination Letter With Cause is a crucial document in Indonesian employment relations, used when an employer needs to terminate an employee's contract due to specific violations or causes as permitted under Law No. 13 of 2003 on Manpower and its amendments. This document should be issued after following proper procedural requirements, including providing previous warnings where applicable. It must clearly state the grounds for termination, reference relevant company policies or employment agreement clauses that have been violated, and detail the final settlement calculations in accordance with Indonesian labor laws. The letter serves both as a formal notification and a legal document that may be required in case of employment disputes or legal proceedings. Given its legal significance, it should be drafted with careful attention to both company policies and Indonesian labor law requirements.

What sections should be included in a Termination Letter With Cause?

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 termination letter

4. Grounds for Termination: Specific reason(s) for termination with reference to relevant company policies and/or employment agreement clauses violated

5. Reference to Previous Actions: Documentation of prior warnings, disciplinary actions, or improvement notices issued

6. Effective Date: Clear statement of the termination effective date

7. Final Settlement Details: Information about final salary, severance pay, and other entitlements as per Indonesian law

8. Company Property Return: List of company properties to be returned

9. Closing Statement: Formal closing and signature block

What sections are optional to include in a Termination Letter With Cause?

1. Handover Requirements: Used when the employee needs to transfer ongoing responsibilities, projects, or documents

2. Non-Compete Reminder: Include if the employee is bound by non-compete or confidentiality agreements

3. Exit Interview: Include if company policy requires an exit interview

4. Benefits Continuation: Information about any continuing benefits or insurance coverage, if applicable

5. Appeal Process: Include if company policy allows for appeals against termination decisions

6. Reference Policy: Include if addressing future reference requests policy

What schedules should be included in a Termination Letter With Cause?

1. Warning Letters: Copies of previous warning letters or disciplinary action documentation

2. Final Settlement Calculation: Detailed breakdown of final payment including severance, salary, and other entitlements

3. Evidence of Misconduct: Supporting documentation of the cause for termination

4. Handover Checklist: List of items and responsibilities to be handed over

5. Employee Acknowledgment Form: Form for employee to acknowledge receipt of termination letter

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

Healthcare

Education

Construction

Hospitality

Professional Services

Mining

Agriculture

Transportation

Telecommunications

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Management

Administration

Corporate Services

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

HR Business Partner

Employee Relations Manager

HR Operations Manager

Compliance Officer

Department Manager

Line Manager

Chief Human Resources Officer

HR Administrator

Legal Manager

Personnel Manager

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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