The Voluntary Termination Letter is a crucial document used when an employee and employer mutually agree to end their employment relationship in Indonesia. This document is essential for compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments. It's typically used in situations where both parties have reached an amicable agreement regarding the termination of employment, whether initiated by the employee or through mutual discussion. The letter should include specific details about the termination date, final settlements, severance calculations according to Indonesian regulations, and any post-employment obligations. It serves as legal protection for both parties and helps prevent future disputes by clearly documenting the voluntary nature of the separation and all agreed terms.
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1. Date and Address Block: Current date and complete address details of both employer and employee
2. Subject Line: Clear indication that this is a voluntary termination letter
3. Formal Greeting: Professional salutation addressing the appropriate party
4. Employment Details: Current position, employee ID, department, and duration of employment
5. Termination Statement: Clear statement of voluntary termination and last working day
6. Mutual Agreement Declaration: Statement confirming both parties agree to the termination
7. Final Settlement: Overview of final payments including salary, severance, and other entitlements as per Indonesian law
8. Company Property: List of company properties to be returned
9. Closing Statement: Professional closing with gratitude and future cooperation possibility
10. Signature Block: Space for signatures of both employer and employee representatives
1. Non-Compete Reminder: Include when the employee's original contract contained non-compete clauses that survive termination
2. Confidentiality Obligations: Include when handling sensitive information was part of the role
3. Handover Plan: Include when the employee holds a key position requiring knowledge transfer
4. Reference Provision: Include when there's an agreement to provide employment references
5. Outstanding Leave Balance: Include when there is unused annual leave to be paid out
6. Medical Benefits Extension: Include if there's an agreement to extend medical benefits post-termination
1. Final Settlement Calculation: Detailed breakdown of all final payments including salary, severance, and other entitlements
2. Company Property Checklist: Itemized list of company assets to be returned
3. Clearance Form: Department-wise clearance form to be completed before final settlement
4. Benefits Summary: Summary of benefits and their termination dates
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