The Employee Dismissal Letter is a critical document used in Indonesian employment relationships when terminating an employee's service with an organization. It must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower as amended by the Job Creation Law (Law No. 11 of 2020). The document is required whenever an employment relationship is terminated, whether due to performance issues, redundancy, retirement, or other legal grounds. It should contain specific elements mandated by Indonesian law, including clear reasoning for termination, notice period details, and compensation calculations. The letter serves as legal evidence of proper termination procedures and helps prevent future disputes by clearly documenting the terms and conditions of the employment termination.
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1. Header and Date: Company letterhead, current date, and reference number of the letter
2. Employee Details: Full name, employee ID, position, and department of the employee being terminated
3. Notice of Termination: Clear statement of employment termination including the effective date
4. Reason for Termination: Legal grounds for termination in accordance with Indonesian Labor Law
5. Final Settlement Details: Information about final salary, severance pay, and other entitled benefits as per regulations
6. Company Property Return: List of company properties to be returned and deadline for return
7. Acknowledgment and Signature: Space for signatures of both employer and employee representatives
1. Garden Leave Provisions: Include when employee is placed on garden leave during notice period
2. Non-Compete Reminder: Include when employee is bound by existing non-compete agreements
3. Transition Handover: Include when specific handover of duties and responsibilities is required
4. Reference Letter Offer: Include when company is willing to provide reference letters
5. Post-Employment Benefits: Include when there are specific arrangements for insurance continuation or other benefits
6. Exit Interview: Include when an exit interview is required as part of the termination process
1. Calculation of Final Settlement: Detailed breakdown of severance pay, service pay, and other compensation
2. Company Property Checklist: Itemized list of company assets to be returned
3. Employee Clearance Form: Form for obtaining clearance from various departments
4. Confidentiality Agreement: Reminder of ongoing confidentiality obligations post-employment
5. Benefits Statement: Statement of termination of benefits and any continuation options
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