Notice Of Non Renewal Of Employment Contract Template for Indonesia

When your fixed-term employment contract approaches its end date in Indonesia, you need clear documentation if the contract will not be renewed. A Notice of Non-Renewal of Employment Contract provides the formal legal framework required under Indonesian employment law to communicate this decision properly and protect all parties involved.

When do you need this document?

You need this notice when managing any fixed-term employment contract (PKWT) that will not continue beyond its expiration date. This includes situations where your company decides not to extend a project-based employee's contract, when downsizing requires ending specific positions, or when performance issues make renewal inadvisable. The document is also essential when contracts reach their maximum renewal limits under Indonesian law, when business restructuring eliminates certain roles, or when budget constraints prevent contract extensions. Additionally, you'll need this notice if an employee's temporary assignment ends or if their specialized skills are no longer required for ongoing operations.

Key legal considerations

The notice must clearly state the non-renewal decision and provide adequate advance notice as required by Indonesian employment regulations. You must specify the exact contract end date and reference the original employment agreement details. The document should outline any final entitlements including unpaid wages, accrued leave payments, and severance benefits if applicable. Include provisions for company property return, confidentiality obligations, and any post-employment restrictions. Ensure the notice addresses final working arrangements, transition responsibilities, and handover procedures. The document must be signed by authorized company representatives and delivered through proper channels with acknowledgment of receipt to create a complete legal record.

Legal requirements in Indonesia

Under Law No. 13 of 2003 (Manpower Law) and Government Regulation No. 35 of 2021, employers must provide written notification before fixed-term contract expiration. Minister of Manpower Regulation No. 2 of 2015 specifies that notification procedures must be followed precisely to ensure compliance. The notice must be issued with sufficient advance time, typically 30 days before contract expiration, though specific timing may vary based on the contract terms and applicable regulations. Indonesian law requires that the document include complete employee identification, contract reference details, and clear non-renewal statements. The notice must be prepared in Indonesian language and follow prescribed formatting requirements. Additionally, you must ensure compliance with any collective bargaining agreements or company policies that may impose additional notification requirements beyond the statutory minimums mandated by Indonesian employment law.