Document background
A Demotion Letter To Employee is a crucial document used when an organization needs to formally downgrade an employee's position, responsibilities, or employment terms in Indonesia. This document must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. The letter is typically issued following performance issues, organizational restructuring, or other valid business reasons. It contains essential information including the reason for demotion, new position details, revised compensation structure, and effective date of changes. The document serves as both a legal record and formal communication tool, requiring careful drafting to ensure compliance with local employment regulations and to minimize potential disputes. It should be presented professionally and requires proper acknowledgment from the employee to ensure transparency and legal validity.
