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Separation Letter for Indonesia

Separation Letter Template for Indonesia

A formal document issued under Indonesian labor law that officially terminates an employment relationship between an employer and employee. The document complies with Law No. 13 of 2003 on Manpower and the Omnibus Law (Law No. 11 of 2020), detailing the terms of separation, including the effective date, reason for termination, final settlement calculations, and any post-employment obligations. It serves as a legal record of the employment termination and outlines all financial entitlements and obligations of both parties.

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Separation Letter

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What is a Separation Letter?

A Separation Letter is a crucial document in Indonesian employment law that formalizes the termination of an employment relationship. It is required whenever an employment relationship ends, whether through resignation, termination, mutual agreement, or retirement. The document must comply with Indonesia's Law No. 13 of 2003 on Manpower and the more recent Omnibus Law (Law No. 11 of 2020), along with their implementing regulations. It serves multiple purposes: legally documenting the termination, specifying the effective date and reasons for separation, detailing final payments and benefits, and outlining any continuing obligations. The letter typically includes calculations for severance pay, service appreciation pay, and compensation rights as prescribed by Indonesian labor regulations.

What sections should be included in a Separation Letter?

1. Company Letterhead and Date: Official company letterhead with complete address and contact details, along with the date of issuance

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

3. Subject Line: Clear indication that this is a separation/termination letter

4. Termination Statement: Clear statement of employment termination including the effective date and type of separation (resignation, termination, mutual agreement, etc.)

5. Reason for Separation: Brief explanation of the grounds for termination in accordance with Indonesian labor law

6. Final Settlement Details: Information about final salary, severance pay, appreciation pay, and other entitlements as per Indonesian regulations

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

8. Closing Statement: Expression of appreciation and future contact information if needed

9. Signature Block: Space for authorized company representative's signature and employee acknowledgment

What sections are optional to include in a Separation Letter?

1. Non-Compete Clause: Used when the employee had access to sensitive information or clients and the company wishes to restrict future employment with competitors

2. Confidentiality Reminder: Include when the employee had access to confidential information to reinforce ongoing obligations

3. Reference Provision: Details about if and how employment references will be provided

4. Benefits Continuation: Information about any benefits that continue post-employment, such as health insurance extension

5. Outstanding Obligations: Used when there are pending expense reports, advances, or other financial matters to be settled

6. Exit Interview: Include when the company requires an exit interview as part of the separation process

What schedules should be included in a Separation Letter?

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

2. Company Property Checklist: Itemized list of company assets to be returned

3. Outstanding Benefits Statement: Statement of any remaining benefits, leave balances, or reimbursements due

4. Handover Document List: List of documents, projects, and responsibilities to be handed over

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

Jurisdiction

Indonesia

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions














Clauses
















Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Construction

Healthcare

Education

Professional Services

Hospitality

Mining

Agriculture

Transportation

Telecommunications

Relevant Teams

Human Resources

Legal

People Operations

Employee Relations

Compliance

Personnel Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

HR Business Partner

HR Administrator

People Operations Manager

Employee Relations Manager

HR Operations Director

Compliance Officer

Legal Manager

HR Specialist

Talent Management Director

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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