The Layoff Letter is a crucial document in Indonesian employment relations, required whenever an employer terminates employment due to business restructuring, economic conditions, or other valid grounds under Indonesian law. It must comply with the provisions of Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law of 2020. The document serves multiple purposes: it formally notifies the employee of their employment termination, details the severance package and final settlements as mandated by law, and provides a legal record of the termination process. The letter should be drafted with careful attention to legal requirements while maintaining professional courtesy, as it may be subject to scrutiny in case of labor disputes. It's particularly important in Indonesia where employment termination is heavily regulated and requires specific procedures and calculations for severance payments.
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1. Letter Header: Company letterhead, date, reference number, and recipient's details including name, employee ID, position, and department
2. Subject Line: Clear indication that this is a termination of employment notice
3. Opening Statement: Professional and respectful introduction stating the purpose of the letter
4. Reason for Termination: Clear explanation of the circumstances leading to the layoff, such as business restructuring, economic conditions, or other valid grounds under Indonesian law
5. Effective Date: Specific date when the employment will terminate
6. Severance Package Details: Breakdown of statutory entitlements including severance pay, service pay, and compensation rights as per Indonesian labor law
7. Final Payments: Information about final salary, unused leave payments, and other outstanding benefits
8. Company Property: Instructions regarding the return of company property and handling of work responsibilities
9. Closing Statement: Expression of gratitude for service and professional well-wishes
10. Signature Block: Authorized signatory details including name, title, and company stamp
1. Outplacement Support: Details of any career transition assistance or job search support being offered
2. Reference Letter Offer: Information about the availability of reference letters or employment certificates
3. Non-Compete/Confidentiality Reminder: Reminder of any ongoing obligations regarding confidentiality or non-compete agreements
4. Healthcare Benefits Extension: Information about any continuation of health benefits, if applicable
5. Appeal Process: Information about the employee's right to appeal the decision, if applicable under company policy
1. Severance Calculation Schedule: Detailed breakdown of severance pay calculation as per Indonesian labor law
2. Benefits Summary: List of all final benefits and entitlements
3. Handover Checklist: List of company properties to be returned and tasks to be completed before last day
4. Final Settlement Form: Form detailing all final payments and deductions
Relevant legal definitions
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Manufacturing
Technology
Financial Services
Retail
Healthcare
Construction
Mining
Agriculture
Education
Telecommunications
Transportation
Hospitality
Professional Services
Energy
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Industrial Relations
Employee Relations
Corporate Secretariat
Personnel Administration
Executive Leadership
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Compliance Officer
HR Business Partner
Employment Relations Manager
HR Operations Manager
Corporate Secretary
Chief Legal Officer
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Industrial Relations Manager
Talent Management Director
HR Administrator
Personnel Manager
Employee Relations Specialist
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