The Redundancy Confirmation Letter is a crucial document in Indonesian employment practice, used when an organization needs to formally communicate the termination of employment due to position redundancy. It must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law No. 11 of 2020), which sets specific requirements for termination procedures and compensation. This document is typically issued following consultation with affected employees and, where applicable, labor unions. It contains essential information about severance payments, service pay, and other entitlements calculated according to statutory formulas. The letter serves both as legal documentation of the termination and as a reference for the employee's entitlements, making it a key document in Indonesian employment records.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Details: Full name, employee ID, position/title, department, and length of service
3. Termination Statement: Clear statement of redundancy decision and effective date
4. Reason for Redundancy: Brief explanation of the business circumstances leading to redundancy
5. Notice Period: Confirmation of notice period or payment in lieu of notice
6. Final Payment Details: Breakdown of final payment including severance pay, service pay, and other entitlements as per Indonesian law
7. Company Property: Instructions regarding return of company property
8. Certificate of Employment: Confirmation that a certificate of employment will be provided
9. Closing: Expression of gratitude for service, signature block, and company stamp
1. Outplacement Support: Details of any career transition or outplacement support being offered
2. Medical Benefits Extension: Information about any post-employment medical benefits continuation
3. Reference Provision: Offer to provide employment references
4. Non-Compete Reminder: If applicable, reminder of existing non-compete obligations
5. Continuation of Specific Projects: If needed, arrangements for handling ongoing projects during transition
1. Schedule A - Calculation of Final Payments: Detailed breakdown of severance pay, service pay, and other entitlements as per Indonesian labor law
2. Schedule B - Handover Checklist: List of company property to be returned and pending tasks to be completed
3. Schedule C - Benefits Summary: Summary of any continuing benefits or special arrangements post-employment
4. Schedule D - Exit Process: Step-by-step guide to the exit process including important dates and requirements
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