A Job Contract Termination Letter is a crucial document used in Indonesian employment relations to formally communicate and document the end of an employment relationship. It must be drafted in accordance with Indonesia's Job Creation Law (Omnibus Law) of 2020 and its implementing regulations, particularly Government Regulation No. 35 of 2021. This document is essential when terminating employment for any reason, including resignation, retirement, company restructuring, or performance-based termination. It should include specific details about final settlements, severance payments, and other entitlements as mandated by Indonesian labor law. The letter serves both as legal documentation and as a reference for calculating final obligations between employer and employee. It's particularly important as Indonesian labor law has strict requirements regarding termination procedures and compensation.
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1. Letter Header and Date: Company letterhead, current date, and reference number if applicable
2. Employee Information: Full name, employee ID, position, and department of the employee being terminated
3. Statement of Termination: Clear statement of employment termination, including the effective date
4. Legal Basis: Reference to relevant provisions of Indonesian labor law and/or company policies justifying the termination
5. Notice Period: Details of the notice period or payment in lieu of notice
6. Final Settlement: Information about final salary, severance pay, and other entitlements as per Indonesian labor law
7. Company Property: Request for return of company property and details of the handover process
8. Closing Statement: Expression of appreciation and contact information for further queries
9. Signatures: Space for authorized signatory and acknowledgment by employee
1. Reason for Termination: Detailed explanation of termination grounds - included when termination is due to specific cause or performance issues
2. Non-Compete Clause: Reminder of existing non-compete obligations - included when original employment contract contained such provisions
3. Reference Letter Offer: Offer to provide a reference letter - included in cases of amicable separation
4. Mutual Release: Statement of mutual release from claims - included when negotiating a mutual separation agreement
5. Continuation of Benefits: Information about post-termination benefits - included when applicable
6. Confidentiality Reminder: Reminder of ongoing confidentiality obligations - included when employee had access to sensitive information
1. Severance Payment Calculation: Detailed breakdown of severance pay, service pay, and other compensation as per Government Regulation No. 35 of 2021
2. Final Settlement Statement: Itemized list of final payments including salary, unused leave, and other benefits
3. Company Property Checklist: List of company assets to be returned
4. Employee Clearance Form: Checklist for departmental clearances before final settlement
5. Supporting Documents: Copies of relevant warning letters, performance reviews, or other documentation supporting the termination decision
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