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Redundancy Letter Template for Indonesia

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Key Requirements PROMPT example:

Redundancy Letter

"I need a Redundancy Letter for our Jakarta-based manufacturing company's restructuring, affecting 50 production staff from March 1, 2025, with specific mention of outplacement support and extended health benefits."

Document background
The Redundancy Letter is a crucial document used in Indonesian employment relationships when terminating employment due to organizational restructuring, economic conditions, or other business reasons. It must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020) and related regulations. The document serves as official notification of employment termination, specifying the effective date, reasons for redundancy, and detailed calculations of all statutory entitlements including severance pay, service pay, and other compensation. It should be issued with sufficient notice and include clear instructions regarding final settlements, company property return, and exit procedures. The letter forms part of the official employment records and may be required in any subsequent legal proceedings or administrative matters.
Suggested Sections

1. Letter Header and Date: Company letterhead, date, and reference number of the letter

2. Employee Details: Full name, employee ID, position, and department of the affected employee

3. Redundancy Notice: Clear statement of termination due to redundancy, including the effective date

4. Reason for Redundancy: Brief explanation of the business circumstances leading to the redundancy decision

5. Financial Entitlements: Detailed breakdown of severance pay, service pay, and other compensation as per Indonesian law

6. Return of Company Property: List of company assets to be returned and the process for doing so

7. Final Documentation: Information about final settlement documents and certificate of employment

8. Acknowledgment: Space for employee signature and date to acknowledge receipt of the letter

Optional Sections

1. Reemployment Assistance: Details of any outplacement services or job search assistance being offered

2. Non-Compete Clause: If applicable, reminder of existing non-compete obligations post-employment

3. Health Insurance Extension: Information about any continued health benefits or BPJS transition arrangements

4. Reference Letter Offer: Confirmation of willingness to provide employment references

5. Union Consultation: Reference to any union consultations if the employee is a union member

6. Appeal Process: Information about the employee's right to appeal the redundancy decision

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed calculation of severance pay according to Indonesian labor law formulas

2. Schedule B - Outstanding Benefits: List of pro-rated benefits, unused leave, and other outstanding payments

3. Schedule C - Company Property Checklist: Itemized list of company property to be returned

4. Appendix 1 - Exit Procedures: Step-by-step guide for completing the exit process

5. Appendix 2 - Contact Information: List of relevant HR contacts for queries and final settlement matters

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 | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Construction

Mining

Healthcare

Education

Hospitality

Telecommunications

Professional Services

Energy

Agriculture

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Employee Relations

Payroll

Senior Management

Relevant Roles

HR Director

HR Manager

Legal Counsel

Chief Financial Officer

Department Head

General Manager

Regional Manager

Country Manager

Managing Director

HR Business Partner

Employee Relations Manager

Compensation & Benefits Manager

Operations Director

Chief Executive Officer

Administrative Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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