The Termination Letter Without Cause is a crucial document used in Indonesian employment relationships when an employer needs to end an employment contract without specific performance-related or misconduct-based reasons. This document must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law. It should be used when organizational restructuring, economic conditions, or other business reasons necessitate employment termination. The letter must include specific elements required by Indonesian law, such as notice periods, statutory severance calculations, and other entitlements. It serves as a formal record of the termination decision and helps protect both employer and employee interests by clearly documenting the termination terms and conditions.
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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. Subject Line: Clear indication that this is a termination notice
3. Opening Statement: Professional opening and reference to the employment contract
4. Termination Notice: Clear statement of termination without cause and the effective date, ensuring compliance with notice period requirements
5. Last Working Day: Specific mention of the employee's last working day
6. Statutory Entitlements: Overview of statutory entitlements including severance pay, service appreciation pay, and compensation rights as per Indonesian law
7. Company Property: Instructions regarding the return of company property and handover of work responsibilities
8. Final Settlement: Information about the final salary payment and timing of severance package disbursement
9. Closing: Professional closing with acknowledgment section and space for signatures
1. Non-Compete Reminder: Include when the employee's contract contains non-compete clauses that will remain in effect
2. Confidentiality Obligations: Include when there are specific confidentiality agreements that survive employment termination
3. Outstanding Leave: Include when there is unused annual leave to be compensated
4. Medical Benefits Extension: Include if the company provides post-termination medical coverage
5. Reference Provision: Include if the company is willing to provide employment references
6. Outplacement Support: Include if the company offers career transition assistance
1. Schedule A - Severance Payment Calculation: Detailed breakdown of severance pay calculation as per Indonesian labor law
2. Schedule B - Final Settlement Statement: Itemized list of final payments including salary, pro-rated bonus (if applicable), and other entitlements
3. Schedule C - Handover Checklist: List of company properties to be returned and pending tasks to be completed
4. Schedule D - Release and Waiver: Document acknowledging receipt of all entitlements and waiving future claims
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