Document background
The Letter For Not Renewing Contract is a crucial document in Indonesian employment practice, used when an employer decides not to extend or renew a fixed-term employment contract (PKWT - Perjanjian Kerja Waktu Tertentu). This document is essential for ensuring compliance with Indonesian Labor Law, particularly Law No. 13 of 2003 on Manpower and its amendments under the Omnibus Law (Law No. 11 of 2020). The letter must be issued within an appropriate timeframe before the contract's expiration to meet statutory notice requirements. It serves multiple purposes: formally documenting the non-renewal decision, protecting the employer legally, maintaining professional standards in employment relationships, and ensuring clarity regarding the employment end date and any associated obligations. The document is particularly important in Indonesia's business environment, where fixed-term contracts are common and their termination is strictly regulated.
