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Retirement Acknowledgement Letter for Indonesia

Retirement Acknowledgement Letter Template for Indonesia

A formal document used in Indonesia to officially acknowledge and confirm an employee's retirement from their position, complying with Indonesian labor laws including Law No. 13/2003 and Law No. 11/2020. The letter documents the retirement date, confirms final entitlements and benefits under Indonesian law, includes details of statutory and company-specific retirement benefits, and provides mutual releases between the employer and employee. It serves as a crucial legal record of the termination of employment due to retirement and confirms compliance with all relevant Indonesian employment and social security regulations.

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What is a Retirement Acknowledgement Letter?

The Retirement Acknowledgement Letter is a critical document in Indonesian employment practice that formally confirms the conclusion of employment due to retirement. It is required when an employee reaches retirement age or opts for voluntary retirement as per company policy and Indonesian labor laws. The document ensures compliance with Indonesian Manpower Law (Law No. 13/2003) and its amendments under the Job Creation Law (Law No. 11/2020), particularly regarding retirement benefits and procedures. The letter serves multiple purposes: it officially documents the retirement date, confirms all final payments and benefits, acknowledges the employee's service, and provides mutual releases. It should be prepared in alignment with BPJS Ketenagakerjaan requirements and must include all statutory entitlements under Indonesian law.

What sections should be included in a Retirement Acknowledgement Letter?

1. Employee and Company Information: Details of the retiring employee and the company, including employee ID, position, and length of service

2. Retirement Date Confirmation: Clear statement of the effective retirement date and confirmation that this aligns with company policy and applicable laws

3. Service Acknowledgement: Recognition of the employee's period of service and contributions to the company

4. Retirement Benefits Summary: Overview of all retirement benefits, including statutory entitlements under Indonesian labor law

5. Final Payment Details: Breakdown of final payments including salary, unused leave, retirement benefits, and statutory severance as per Law No. 13/2003 and Law No. 11/2020

6. Company Property Return: Confirmation of return of company property and settlement of any outstanding matters

7. Confidentiality Reminder: Reminder of ongoing confidentiality obligations post-retirement

8. Mutual Release: Statement of mutual release of claims between employer and employee

What sections are optional to include in a Retirement Acknowledgement Letter?

1. Post-Retirement Consultancy: Include when the retiree will continue providing services as a consultant

2. Extended Benefits: Used when the company provides additional non-statutory benefits post-retirement

3. Medical Coverage Extension: Include if there is continuation of medical benefits post-retirement

4. Special Recognition: For long-serving employees or those in senior positions, including special acknowledgments

5. Knowledge Transfer: Include when there are specific arrangements for knowledge transfer before retirement

6. Retirement Ceremony: When formal farewell arrangements are part of the retirement process

What schedules should be included in a Retirement Acknowledgement Letter?

1. Schedule A - Benefits Calculation: Detailed calculation of retirement benefits, including statutory severance, service appreciation pay, and rights compensation

2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including pro-rated salary, unused leave, and other entitlements

3. Schedule C - Company Property List: List of company property to be returned before retirement

4. Appendix 1 - BPJS Documentation: Copies of relevant BPJS Ketenagakerjaan (social security) documentation

5. Appendix 2 - Retirement Benefits Guide: Information about accessing pension and retirement benefits post-employment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions






















Clauses




















Relevant Industries

Manufacturing

Financial Services

Technology

Retail

Healthcare

Education

Construction

Mining

Agriculture

Transportation

Hospitality

Professional Services

Energy

Telecommunications

Public Sector

Non-Profit Organizations

Relevant Teams

Human Resources

Legal

Finance

Payroll

Compliance

Employee Relations

Corporate Secretariat

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Company Secretary

HR Business Partner

Compensation and Benefits Manager

HR Operations Manager

Employee Relations Manager

Legal Manager

HR Administrator

Payroll Manager

Benefits Coordinator

HR Compliance Officer

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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