The Retirement Letter To Employee is a crucial document in Indonesian employment practice that formalizes the conclusion of employment due to retirement. It is used when an employee reaches the statutory retirement age or opts for early retirement as permitted by law. The letter must comply with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020) and social security provisions. It serves multiple purposes: officially documenting the retirement date, outlining pension and benefit entitlements, explaining the retirement process, and providing guidance on necessary documentation for BPJS claims. The document helps ensure a smooth transition into retirement while protecting both employer and employee interests by clearly stating all terms and conditions of the retirement arrangement.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee including their full name, employee ID, and current position
2. Subject Line: Clear indication that this is a retirement notification letter
3. Opening Statement: Formal acknowledgment of the employee's upcoming retirement date and reference to any prior discussions or notifications
4. Retirement Details: Specific information about the effective date of retirement and last working day
5. Service Recognition: Acknowledgment of the employee's years of service and contributions to the company
6. Benefits Summary: Brief overview of retirement benefits, pension arrangements, and other entitlements as per Indonesian law and company policy
7. Next Steps: Clear outline of actions the employee needs to take, including document submissions and exit procedures
8. Contact Information: Details of HR personnel or department to contact for queries or assistance
9. Closing: Professional closing statement, including well wishes and gratitude
10. Signature Block: Space for authorized signatory's name, title, and signature
1. Transition Plan: Include when the employee holds a key position requiring knowledge transfer or handover procedures
2. Post-Retirement Consulting: Include when offering or requesting post-retirement consulting or advisory arrangements
3. Healthcare Continuation: Include when there are specific healthcare benefit continuations or transitions to discuss
4. Company Asset Returns: Include when the employee needs to return significant company assets or equipment
5. Non-Compete/Confidentiality Reminder: Include when there are specific post-employment obligations to remind about
6. Retirement Celebration: Include when the company plans to organize a formal farewell or retirement celebration
1. Benefit Calculation Sheet: Detailed breakdown of final settlement including pension benefits, severance pay, and other entitlements as per Indonesian labor law
2. Required Documentation Checklist: List of documents the employee needs to submit for processing retirement benefits and BPJS claims
3. Exit Process Form: Checklist of tasks to complete before the last working day
4. BPJS Pension Claim Forms: Standard forms required for claiming BPJS pension benefits
5. Company Pension Program Forms: Forms specific to company pension program (if applicable)
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