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Relieving Letter Template for Indonesia

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Key Requirements PROMPT example:

Relieving Letter

I need a relieving letter for an employee who has completed their notice period and all exit formalities, confirming their last working day and acknowledging their contributions to the company. The letter should also include a statement of no dues pending and best wishes for their future endeavors.

What is a Relieving Letter?

A Relieving Letter is an official document that Indonesian employers provide when an employee leaves their job. It confirms that the person has properly completed their notice period, handed over their duties, and settled any pending matters with the company. This crucial document helps employees transition smoothly to new jobs, as many Indonesian companies require it during their hiring process.

Under Indonesian labor practices, the letter typically includes the employee's tenure dates, role, and a statement that they're free from workplace obligations. While not strictly mandated by law, it's become a standard business practice that protects both employers and employees - employers use it to formally end their responsibilities, while employees need it to prove their professional standing to future employers.

When should you use a Relieving Letter?

Request a Relieving Letter as soon as you complete your notice period with an Indonesian employer. This timing is crucial since many companies require seeing this document before finalizing new job offers. Having it ready speeds up your transition and prevents delays in starting your next position.

Companies need to issue the Relieving Letter promptly when employees finish their handover process and clear any pending obligations. It's especially important in regulated industries like banking and healthcare, where proper documentation of employment gaps is mandatory. The letter also helps protect companies from future claims by clearly marking the end of the employment relationship.

What are the different types of Relieving Letter?

  • Basic Clearance Letter: The simplest format confirming employment dates and role completion, commonly used by small businesses
  • Detailed Exit Letter: Includes comprehensive handover details, pending dues settlement, and company property returns - preferred by larger corporations
  • Industry-Specific Release: Contains additional clauses for regulated sectors like banking or technology, addressing confidentiality and non-compete requirements
  • Project Completion Letter: Specifically designed for contract workers, focusing on project deliverables and completion status
  • International Format: Enhanced version meeting multinational company requirements, often bilingual in Indonesian and English

Who should typically use a Relieving Letter?

  • HR Managers: Draft and issue Relieving Letters, ensure compliance with company policies, and maintain employment records
  • Department Heads: Verify task handover completion and confirm any pending project commitments
  • Departing Employees: Request the letter and use it as proof of proper exit for future employers
  • Hiring Companies: Review candidates' Relieving Letters to confirm clean separation from previous employment
  • Legal Teams: Review letter content to ensure it meets Indonesian labor law requirements and protects company interests
  • Finance Department: Confirm settlement of financial obligations before letter issuance

How do you write a Relieving Letter?

  • Employee Details: Gather full name, employee ID, designation, and department information
  • Employment Dates: Confirm exact joining and last working dates, including notice period completion
  • Clearance Status: Verify handover completion, return of company assets, and settlement of dues
  • Project Status: Document completion or transfer status of ongoing assignments
  • Company Format: Use official letterhead and follow your organization's template guidelines
  • Verification: Get sign-offs from relevant department heads before HR finalizes the letter
  • Documentation: Keep copies for company records and provide originals to the employee

What should be included in a Relieving Letter?

  • Company Details: Full legal name, address, and registration number on official letterhead
  • Employee Information: Complete name, ID number, position held, and department
  • Service Period: Exact dates of employment commencement and completion
  • Clearance Statement: Confirmation of all dues settlement and company property return
  • Conduct Declaration: Statement about satisfactory service and professional behavior
  • Non-Compete Reminder: Reference to any ongoing confidentiality obligations
  • Authorization: Signatures of HR head and department manager with official company stamp
  • Date and Reference: Letter issuance date and unique reference number

What's the difference between a Relieving Letter and an Employment Reference Letter?

A Relieving Letter often gets confused with an Employment Reference Letter, but they serve distinct purposes in Indonesian workplace documentation. While both relate to employment verification, their timing, content, and legal implications differ significantly.

  • Timing and Purpose: A Relieving Letter is issued at employment end to confirm proper exit, while a Reference Letter can be issued anytime to validate work experience and performance
  • Legal Requirements: Relieving Letters are quasi-mandatory for job transitions in Indonesia, whereas Reference Letters are optional professional courtesies
  • Content Scope: Relieving Letters focus on clearance status and obligation completion, while Reference Letters detail performance, skills, and character assessment
  • Future Impact: A Relieving Letter primarily enables new employment, while a Reference Letter supports career advancement and professional credibility

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