The End of Service Contract Letter is a crucial document in Indonesian employment relations, required whenever an employment relationship is formally terminated. It must comply with Law No. 13 of 2003 (Manpower Law) and the Job Creation Law (Omnibus Law) of 2020, along with their implementing regulations. This document is used to formalize the termination process, whether due to resignation, retirement, contract expiration, or other reasons recognized by Indonesian law. It includes essential information such as service duration, termination date, final payment calculations including severance and service appreciation pay, and ongoing obligations. The letter serves both as a legal record and a comprehensive summary of the termination terms, protecting both employer and employee interests while ensuring compliance with Indonesian labor regulations.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing to the employee
2. Employee Information: Full name, employee ID, position/title, and department of the employee
3. Service Duration: Start date and end date of employment, total years of service
4. Termination Details: Effective date of termination and reason for termination in accordance with Indonesian labor law
5. Financial Entitlements: Breakdown of final payments including severance pay, service appreciation pay, and compensation rights as per legal requirements
6. Outstanding Obligations: Statement regarding any company property return, confidentiality obligations, and other pending matters
7. Acknowledgment: Statement of mutual agreement and release of claims
8. Closing: Formal closing statement, signature blocks for authorized company representative and employee
1. Reference Offer: Optional section offering to provide employment references, included when the termination is amicable
2. Non-Compete Reminder: Include when the employee's original contract contained non-compete clauses that survive termination
3. Benefits Continuation: Details of any extended benefits or insurance coverage, if applicable
4. Transition Arrangements: Include when there are specific handover requirements or transition period arrangements
1. Financial Calculation Schedule: Detailed breakdown of all financial entitlements including basic severance, service appreciation, and other compensation
2. Company Property Checklist: List of company assets to be returned, including equipment, documents, and access cards
3. Final Clearance Form: Checklist for various department clearances (IT, Finance, HR) before final settlement
4. Social Security Details: Information about BPJS Employment and Healthcare status and continuation options
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