A Termination Letter formally ends an employment relationship between a company and its worker in Indonesia. It outlines the final date of employment, reasons for separation, and any remaining obligations like returning company property or completing handover tasks. Under Indonesian Labor Law No. 13/2003, employers must provide this written notice before ending employment, except in cases of serious misconduct.

The letter protects both parties by documenting the termination terms, severance details, and any post-employment restrictions. It helps companies comply with local labor regulations while giving employees clear information about their rights and final entitlements. Indonesian law requires specific content in these letters, including the termination basis and calculation of final payments.

Use a Termination Letter when ending any employment relationship in Indonesia, from resignations to layoffs to performance-based dismissals. It's essential to issue this document before the employee's last day, giving them proper notice as required by Labor Law No. 13/2003. Critical timing scenarios include company restructuring, documented performance issues, or when an employee submits their resignation.

The letter becomes especially important during mass layoffs, business closures, or when dealing with senior positions where severance packages are complex. Having it ready before any termination meeting protects your company legally and sets clear expectations about the separation process, final payments, and ongoing obligations like confidentiality agreements.

• Probation Termination Letter: Used during or at the end of trial periods to end employment before permanent status
• Dismissal Letter: For termination due to misconduct, poor performance, or policy violations
• Service Contract Termination Letter: Ends agreements with independent contractors or service providers
• Cancellation Letter: General purpose termination for various business arrangements
• Lease Non Renewal Letter: Specifically for ending property rental agreements

• HR Directors & Managers: Draft and oversee Termination Letters, ensure compliance with Indonesian labor laws, and manage the separation process
• Company Directors: Review and sign letters for senior staff terminations, approve severance packages, and make final decisions
• Legal Teams: Review letter content, verify compliance with Labor Law No. 13/2003, and handle potential disputes
• Department Managers: Initiate termination requests, document performance issues, and participate in the exit process
• Employees: Receive the letter, acknowledge its terms, and comply with final instructions regarding company property and confidentiality
• Labor Unions: Review termination terms for union members and ensure adherence to collective bargaining agreements

• Employee Details: Gather full name, position, employee ID, hire date, and department information
• Termination Basis: Document clear reasons aligned with Indonesian Labor Law, including any prior warnings or performance reviews
• Severance Calculation: Determine final salary, unused leave, severance pay, and other benefits per regulations
• Timeline Planning: Set last working day, notice period, and handover schedule
• Company Assets: List all items for return including badges, devices, and confidential materials
• Legal Requirements: Check labor union agreements and company policies for additional compliance needs
• Document Generation: Use our platform to create a legally-sound Termination Letter that includes all mandatory elements

• Header Information: Company letterhead, reference number, date, and recipient's complete details
• Employment Details: Position title, hire date, and department as registered with Manpower Ministry
• Termination Basis: Clear statement of grounds for termination under Labor Law No. 13/2003
• Final Working Date: Explicit mention of last day and notice period compliance
• Compensation Details: Breakdown of final salary, severance, and other entitlements
• Post-Employment Obligations: Confidentiality requirements and company property return instructions
• Legal Compliance Statement: Reference to relevant labor laws and collective agreements
• Signature Block: Authorized company representative's name, title, and signature space

A Termination Letter and a Termination of Contract Letter serve different purposes in Indonesian business law, though they're often confused. While both end formal relationships, their scope and legal requirements differ significantly.

• Legal Framework: Termination Letters are specifically governed by Labor Law No. 13/2003 and focus on ending employment relationships, while Contract Termination Letters fall under Contract Law (KUHPerdata) for broader business agreements
• Required Content: Termination Letters must include severance calculations and employee rights under labor law, whereas Contract Termination Letters focus on contractual obligations and wind-down terms
• Notice Periods: Employment terminations require specific notice periods based on employment duration, while contract terminations follow the notice terms specified in the original agreement
• Regulatory Oversight: Employment terminations may require Ministry of Manpower involvement, while contract terminations typically don't need regulatory approval