The End Of Contract Letter To Employee is a crucial document in Indonesian employment relations, typically used when a fixed-term employment contract reaches its natural conclusion. This document is mandated by Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law No. 11 of 2020, requiring employers to properly document and communicate the termination of employment contracts. It serves multiple purposes: officially notifying the employee of the contract's end date, outlining final settlements and obligations, protecting both parties' interests, and ensuring compliance with local labor regulations. The letter should be issued with sufficient notice before the contract's end date and include all necessary information regarding final payments, benefit cessations, and company property returns.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing to the employee including their full name and position
2. Contract Reference: Clear reference to the original employment contract, including its date and contract number
3. Purpose Statement: Clear statement indicating this is an end of contract notification
4. End Date Confirmation: Specific mention of the contract end date and last working day
5. Final Settlement Details: Information about final salary, benefits, and any other entitlements
6. Company Property: List of company properties to be returned and deadline for return
7. Closing Statement: Expression of appreciation and good wishes for future endeavors
8. Signature Block: Space for authorized signatory's name, title, and signature
1. Certificate of Employment: Mention of availability of employment certificate if requested
2. Non-Compete Reminder: Include if the original contract contained non-compete clauses that extend beyond employment
3. Exit Interview: Details about exit interview arrangements if company policy requires one
4. Continuation Possibility: Include if there's a possibility of future employment or contract renewal
5. Benefits Extension: Information about any benefits that extend beyond the termination date
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, unused leave, and other entitlements
2. Company Property Checklist: Itemized list of company properties to be returned
3. Clearance Form: Form listing all departments that need to provide clearance before final settlement
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