Document background
The Termination of Contract Letter to Employee is a crucial document in Indonesian employment practice that formally notifies an employee about the end of their employment relationship with the company. This document must be prepared in accordance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under Law No. 11 of 2020. It is used when an employer needs to terminate an employment contract for various reasons such as company restructuring, performance issues, or mutual agreement. The letter should contain specific elements required by law, including clear termination grounds, effective date, final settlement calculations, and information about severance payments. It serves as both a legal document for compliance purposes and a formal communication tool that helps maintain professional standards during the separation process. The document plays a vital role in preventing potential labor disputes and ensuring all legal obligations are met during the termination process.
