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End Of Service Contract Letter

End Of Service Contract Letter Template for Indonesia

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Key Requirements PROMPT example:

End Of Service Contract Letter

"I need an End of Service Contract Letter for an Indonesian manufacturing company where an employee is voluntarily resigning from their senior manager position effective March 15, 2025, with the requirement to include standard non-compete clauses and detailed breakdown of severance calculations."

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Document background
The End of Service Contract Letter is a crucial document in Indonesian employment relations, required whenever an employment relationship is formally terminated. It must comply with Law No. 13 of 2003 (Manpower Law) and the Job Creation Law (Omnibus Law) of 2020, along with their implementing regulations. This document is used to formalize the termination process, whether due to resignation, retirement, contract expiration, or other reasons recognized by Indonesian law. It includes essential information such as service duration, termination date, final payment calculations including severance and service appreciation pay, and ongoing obligations. The letter serves both as a legal record and a comprehensive summary of the termination terms, protecting both employer and employee interests while ensuring compliance with Indonesian labor regulations.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and formal addressing to the employee

2. Employee Information: Full name, employee ID, position/title, and department of the employee

3. Service Duration: Start date and end date of employment, total years of service

4. Termination Details: Effective date of termination and reason for termination in accordance with Indonesian labor law

5. Financial Entitlements: Breakdown of final payments including severance pay, service appreciation pay, and compensation rights as per legal requirements

6. Outstanding Obligations: Statement regarding any company property return, confidentiality obligations, and other pending matters

7. Acknowledgment: Statement of mutual agreement and release of claims

8. Closing: Formal closing statement, signature blocks for authorized company representative and employee

Optional Sections

1. Reference Offer: Optional section offering to provide employment references, included when the termination is amicable

2. Non-Compete Reminder: Include when the employee's original contract contained non-compete clauses that survive termination

3. Benefits Continuation: Details of any extended benefits or insurance coverage, if applicable

4. Transition Arrangements: Include when there are specific handover requirements or transition period arrangements

Suggested Schedules

1. Financial Calculation Schedule: Detailed breakdown of all financial entitlements including basic severance, service appreciation, and other compensation

2. Company Property Checklist: List of company assets to be returned, including equipment, documents, and access cards

3. Final Clearance Form: Checklist for various department clearances (IT, Finance, HR) before final settlement

4. Social Security Details: Information about BPJS Employment and Healthcare status and continuation options

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Energy

Transportation

Consumer Goods

Relevant Teams

Human Resources

Legal

Compliance

Finance

Payroll

Industrial Relations

Employee Relations

Operations

Administration

Relevant Roles

HR Director

HR Manager

Legal Counsel

Compliance Officer

Employee Relations Manager

HR Business Partner

Compensation and Benefits Manager

HR Operations Manager

Industrial Relations Manager

Personnel Manager

HR Administrator

Payroll Manager

Industries
Law No. 13 of 2003 (Manpower Law): The main employment law in Indonesia that regulates employment relationships, including termination procedures, severance pay calculations, and employee rights upon termination
Law No. 11 of 2020 (Job Creation Law/Omnibus Law): Recent amendments to employment regulations affecting severance pay calculations and termination procedures
Government Regulation No. 35 of 2021: Implementing regulation for fixed-term employment, outsourcing, working hours, rest periods, and termination of employment
Law No. 40 of 2004 on National Social Security System (SJSN): Regulations regarding social security obligations and benefits that need to be addressed during employment termination
Law No. 36 of 2008 on Income Tax: Tax regulations affecting the treatment of severance payments and other termination benefits
Minister of Manpower Regulation No. 3 of 1996: Guidelines for settling industrial relations disputes, including proper documentation and procedures for employment termination
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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