The Retirement Acknowledgement Letter is a critical document in Indonesian employment practice that formally confirms the conclusion of employment due to retirement. It is required when an employee reaches retirement age or opts for voluntary retirement as per company policy and Indonesian labor laws. The document ensures compliance with Indonesian Manpower Law (Law No. 13/2003) and its amendments under the Job Creation Law (Law No. 11/2020), particularly regarding retirement benefits and procedures. The letter serves multiple purposes: it officially documents the retirement date, confirms all final payments and benefits, acknowledges the employee's service, and provides mutual releases. It should be prepared in alignment with BPJS Ketenagakerjaan requirements and must include all statutory entitlements under Indonesian law.
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1. Employee and Company Information: Details of the retiring employee and the company, including employee ID, position, and length of service
2. Retirement Date Confirmation: Clear statement of the effective retirement date and confirmation that this aligns with company policy and applicable laws
3. Service Acknowledgement: Recognition of the employee's period of service and contributions to the company
4. Retirement Benefits Summary: Overview of all retirement benefits, including statutory entitlements under Indonesian labor law
5. Final Payment Details: Breakdown of final payments including salary, unused leave, retirement benefits, and statutory severance as per Law No. 13/2003 and Law No. 11/2020
6. Company Property Return: Confirmation of return of company property and settlement of any outstanding matters
7. Confidentiality Reminder: Reminder of ongoing confidentiality obligations post-retirement
8. Mutual Release: Statement of mutual release of claims between employer and employee
1. Post-Retirement Consultancy: Include when the retiree will continue providing services as a consultant
2. Extended Benefits: Used when the company provides additional non-statutory benefits post-retirement
3. Medical Coverage Extension: Include if there is continuation of medical benefits post-retirement
4. Special Recognition: For long-serving employees or those in senior positions, including special acknowledgments
5. Knowledge Transfer: Include when there are specific arrangements for knowledge transfer before retirement
6. Retirement Ceremony: When formal farewell arrangements are part of the retirement process
1. Schedule A - Benefits Calculation: Detailed calculation of retirement benefits, including statutory severance, service appreciation pay, and rights compensation
2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including pro-rated salary, unused leave, and other entitlements
3. Schedule C - Company Property List: List of company property to be returned before retirement
4. Appendix 1 - BPJS Documentation: Copies of relevant BPJS Ketenagakerjaan (social security) documentation
5. Appendix 2 - Retirement Benefits Guide: Information about accessing pension and retirement benefits post-employment
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Financial Services
Technology
Retail
Healthcare
Education
Construction
Mining
Agriculture
Transportation
Hospitality
Professional Services
Energy
Telecommunications
Public Sector
Non-Profit Organizations
Relevant Teams
Human Resources
Legal
Finance
Payroll
Compliance
Employee Relations
Corporate Secretariat
Administration
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Company Secretary
HR Business Partner
Compensation and Benefits Manager
HR Operations Manager
Employee Relations Manager
Legal Manager
HR Administrator
Payroll Manager
Benefits Coordinator
HR Compliance Officer
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