The Retirement Notice Letter To Employee is a crucial document in Indonesian employment practice, required when an employee reaches the statutory retirement age or opts for voluntary retirement where permitted. This document is mandated under Indonesian labor law, particularly Law No. 13 of 2003 on Manpower, and must include specific details about retirement timing, benefits, and procedures. It serves multiple purposes: officially documenting the retirement date, outlining the retirement benefits package, detailing the handover process, and ensuring compliance with legal requirements. The letter should be issued with sufficient notice period as per company policy or employment agreement, typically ranging from 1-6 months before the effective retirement date. It's essential for proper documentation and protecting both employer and employee interests during the retirement transition.
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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, and department of the retiring employee
3. Retirement Notice Statement: Clear statement indicating the retirement and the effective date
4. Service Recognition: Acknowledgment of the employee's years of service and contributions to the company
5. Retirement Benefits Overview: Summary of retirement benefits, pension arrangements, and final settlements as per company policy and Indonesian law
6. Handover Requirements: Instructions regarding the handover of responsibilities, company property, and documentation
7. Next Steps: Clear outline of what the employee needs to do before their last working day
8. Closing: Formal closing with good wishes and contact information for further queries
1. Post-Retirement Medical Benefits: Include if the company offers continued medical coverage post-retirement
2. Consulting/Advisory Role Offer: Include if the company wishes to retain the employee in a different capacity post-retirement
3. Exit Interview Arrangements: Include if the company requires a formal exit interview process
4. Reference Letter Offer: Include if the company is willing to provide references for future endeavors
5. Farewell Event Details: Include if the company plans to organize a formal farewell celebration
1. Retirement Benefits Calculation: Detailed breakdown of final settlement, including pension, gratuity, and other benefits
2. Handover Checklist: List of items and responsibilities to be handed over before the last working day
3. Company Property Return Form: Checklist of company assets to be returned
4. Benefits Claim Forms: Required forms for claiming retirement benefits and pension
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