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Employment Contract Termination Notice Template for Indonesia

A formal document issued under Indonesian labor law to officially notify an employee about the termination of their employment contract. This notice must comply with Indonesia's Job Creation Law (Omnibus Law) and Government Regulation No. 35/2021, including specific requirements regarding notice periods, severance calculations, and statutory entitlements. The document serves as a legal record of the termination process and typically includes details about the termination date, reason for termination, final settlements, and post-employment obligations, all structured in accordance with Indonesian employment regulations.

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What is a Employment Contract Termination Notice?

The Employment Contract Termination Notice is a crucial document in Indonesian employment relations, required whenever an employer initiates the termination of an employment relationship. This document must strictly adhere to Indonesian labor laws, particularly the Job Creation Law (Omnibus Law) and Government Regulation No. 35/2021, which outline specific requirements for employment termination. The notice serves multiple purposes: it formally communicates the termination decision, specifies the effective date, details the reasons for termination, outlines the employee's entitlements including severance and other benefits, and provides information about the handover process. It forms part of the official employment termination documentation and may be required in any subsequent legal proceedings or dispute resolution processes.

What sections should be included in a Employment Contract Termination Notice?

1. Letter Header: Company letterhead including full legal name, address, and contact details

2. Date: The official date of the termination notice

3. Reference Number: Internal reference number for the termination notice

4. Recipient Details: Employee's full name, employee ID, position, and department

5. Subject Line: Clear indication that this is a termination notice

6. Opening Statement: Formal introduction stating the purpose of the letter

7. Termination Details: Specific information about the termination including effective date and legal basis for termination under Indonesian law

8. Notice Period: Details of the notice period as per employment contract and Indonesian regulations

9. Final Settlement: Information about final salary, severance pay, and other entitlements as per Indonesian labor laws

10. Company Property: Instructions regarding the return of company property

11. Closing Statement: Professional closing with acknowledgment request

12. Signature Block: Authorized signatory details including name, title, and company stamp

What sections are optional to include in a Employment Contract Termination Notice?

1. Reason for Termination: Detailed explanation of termination reason - required when termination is for cause

2. Transition Plan: Details of handover responsibilities - include when employee holds critical position

3. Non-Compete Reminder: Reminder of existing non-compete obligations - include if specified in employment contract

4. Reference Offer: Offer to provide employment reference - include for amicable terminations

5. Continuation of Benefits: Information about post-employment benefits - include if applicable

6. Legal Rights Statement: Statement about employee's right to legal representation - include in contentious cases

7. Mutual Release: Proposal for mutual release agreement - include when seeking signed release

What schedules should be included in a Employment Contract Termination Notice?

1. Calculation of Final Settlements: Detailed breakdown of all final payments including severance, service pay, and other entitlements

2. Company Property Checklist: List of company property to be returned

3. Exit Interview Form: Standard form for exit interview process

4. Handover Document Template: Template for documenting handover of responsibilities and ongoing projects

5. Employee Clearance Form: Checklist for various department clearances before final settlement

6. Benefits Summary: Summary of any continuing benefits or insurance coverage post-termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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