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Severance Notice Template for Indonesia

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Key Requirements PROMPT example:

Severance Notice

"I need a Severance Notice for an employee being made redundant due to department restructuring, with termination effective March 15, 2025, ensuring compliance with Indonesian labor laws and including calculations for 8 years of service."

Document background
The Severance Notice is a crucial document in Indonesian employment relations, required whenever an employer terminates an employment relationship, whether due to redundancy, performance issues, or other legitimate reasons. This document must comply with Indonesia's strict labor laws, particularly the Job Creation Law of 2020 and PP 35/2021, which specify mandatory requirements for termination procedures and severance calculations. The notice should be issued with appropriate timing to fulfill statutory notice period requirements and must include detailed calculations of severance pay, service appreciation pay, and other entitlements as prescribed by law. It serves both as a formal notification of employment termination and a comprehensive record of all financial settlements and obligations, protecting both employer and employee interests while ensuring legal compliance.
Suggested Sections

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

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

3. Notice of Termination: Clear statement of employment termination and effective date

4. Reason for Termination: Legal basis and specific reasons for termination in accordance with Indonesian labor law

5. Notice Period: Statement of notice period requirements and how it will be handled (worked or paid in lieu)

6. Severance Package: Breakdown of severance payment, service appreciation pay, and compensation rights as per regulations

7. Final Settlements: Details of final salary, pro-rated THR, unused leave, and other entitlements

8. Company Property: List of company properties to be returned and process for return

9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

10. Signature Block: Space for authorized signatory from company and acknowledgment from employee

Optional Sections

1. Garden Leave: Include when employee is required to serve notice period away from office

2. Non-Compete Reminder: Include if employee is bound by existing non-compete agreements

3. Outplacement Support: Include if company is offering career transition assistance

4. Medical Benefits Extension: Include if company is extending medical coverage beyond termination

5. Release Agreement Reference: Include if a separate mutual termination agreement is to be signed

6. Performance Issues: Include if termination is due to performance-related issues, documenting prior warnings

7. Handover Instructions: Include if employee has key responsibilities requiring formal handover

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed calculation of severance package components as per Indonesian regulations

2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including salary, benefits, and deductions

3. Schedule C - Company Property List: Detailed inventory of company properties to be returned

4. Appendix 1 - Handover Checklist: Checklist for completion of knowledge transfer and handover tasks

5. Appendix 2 - Exit Process: Step-by-step guide for completing exit formalities

6. Appendix 3 - Previous Warning Letters: Copies of any relevant warning letters or performance improvement plans (if applicable)

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

Mining

Oil and Gas

Retail

Healthcare

Education

Telecommunications

Construction

Hospitality

Professional Services

Agriculture

Transportation

Logistics

Relevant Teams

Human Resources

Legal

Compliance

Senior Management

Industrial Relations

Finance

Operations

Administration

Corporate Secretariat

Relevant Roles

HR Manager

HR Director

Legal Counsel

Company Director

Managing Director

HR Business Partner

Legal Manager

Compliance Officer

Department Head

General Manager

Chief Executive Officer

Chief Human Resources Officer

Industrial Relations Manager

HR Operations Manager

Personnel 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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