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Layoff Letter To Employee

Layoff Letter To Employee Template for Indonesia

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Key Requirements PROMPT example:

Layoff Letter To Employee

"I need a Layoff Letter To Employee for our Jakarta-based tech company's restructuring, affecting 50 employees in March 2025, with provisions for outplacement support and extended health benefits."

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Document background
The Layoff Letter To Employee is a crucial document used in Indonesian employment termination processes when companies need to reduce their workforce due to various business reasons such as economic conditions, restructuring, or operational changes. This document must strictly adhere to Indonesian labor laws, particularly the Manpower Law (Law No. 13 of 2003) and the Job Creation Law (Law No. 11 of 2020). It serves as the official written notification of employment termination, detailing the grounds for layoff, effective date, severance package calculations, and other entitlements as mandated by law. The letter forms part of the formal documentation required for legal compliance and may be necessary in case of future labor disputes or legal proceedings.
Suggested Sections

1. Company Letterhead and Date: Official company letterhead including company details and the date of the letter

2. Employee Details: Full name, employee ID, position, and department of the employee being terminated

3. Subject Line: Clear indication that this is a termination/layoff notice

4. Termination Statement: Clear statement of employment termination including the effective date

5. Reason for Layoff: Explanation of the business circumstances or reorganization leading to the layoff

6. Severance Details: Breakdown of severance pay, service pay, and other compensation as per Indonesian law

7. Final Payments: Information about final salary, unused leave payments, and other entitled benefits

8. Company Property: List of company properties to be returned and process for return

9. Signature Block: Space for authorized company representative's signature and employee acknowledgment

Optional Sections

1. Transition Period: Include when there is a notice period or transition period before the effective termination date

2. Outplacement Support: Include when the company offers job search assistance or career transition support

3. Non-Compete Reminder: Include when the employee has existing non-compete obligations that continue post-employment

4. Reference Provision: Include when the company is willing to provide employment references

5. Healthcare Benefits Extension: Include when there are continuing health benefits or BPJS arrangements

6. Rehire Eligibility: Include when specifying whether the employee is eligible for future re-employment

Suggested Schedules

1. Severance Calculation Sheet: Detailed calculation of severance pay, long service pay, and other compensation components as per Indonesian labor law

2. Final Settlement Statement: Comprehensive list of all final payments including salary, benefits, and deductions

3. Company Property Checklist: Itemized list of company assets to be returned

4. Employee Clearance Form: Form for obtaining clearance from various departments before final settlement

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

Construction

Mining

Agriculture

Healthcare

Education

Hospitality

Transportation

Professional Services

Energy

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Compliance

Industrial Relations

Executive Management

Administration

Payroll

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Chief Executive Officer

Chief Human Resources Officer

HR Business Partner

Employee Relations Manager

Compliance Officer

Department Manager

HR Operations Manager

Industrial Relations Manager

Industries
Law No. 13 of 2003 (Manpower Law): The main employment law in Indonesia that regulates employment relationships, including termination procedures, rights, and obligations of both employers and employees during termination
Law No. 11 of 2020 (Job Creation Law): Omnibus law that amended several provisions of the Manpower Law, including changes to severance pay calculations and termination procedures
Law No. 2 of 2004: Law concerning Industrial Relations Dispute Settlement, which provides the framework for resolving disputes arising from employment termination
Minister of Manpower Regulation No. 3 of 1996: Regulations regarding settlement of employment termination and determining severance pay in private companies
Government Regulation No. 35 of 2021: Implementing regulation for the Job Creation Law regarding fixed-term employment agreements, outsourcing, working hours, labor relations, and termination of employment
Minister of Manpower Decree No. 150 of 2000: Guidelines for employment termination settlement and determination of separation pay, service pay, and compensation in companies
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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