The End Of Fixed Term Contract Letter is a crucial document used in Indonesian employment relations when a fixed-term employment contract (PKWT) reaches its scheduled conclusion. This document must comply with Indonesian Labor Law No. 13 of 2003 and its amendments under the Job Creation Law No. 11 of 2020, along with related implementing regulations. It serves as formal notification to the employee about the contract's conclusion, typically issued before the contract's end date to ensure proper notice periods are observed. The letter should include specific details about final settlements, company property return, and other closing procedures. It's an essential tool for maintaining clear documentation of employment termination and ensuring compliance with Indonesian labor regulations regarding fixed-term contract conclusions.
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1. Letter Header: Company letterhead including full legal name, address, and contact details
2. Date and Reference Number: Formal letter date and company reference number for documentation purposes
3. Recipient Details: Employee's full name, employee ID, position, and work location
4. Subject Line: Clear indication that this is an End of Fixed Term Contract Letter
5. Contract Reference: Reference to the original fixed-term employment contract, including its date and contract number
6. Notification of Contract End: Clear statement of the contract end date and confirmation that it will not be renewed
7. Final Entitlements: Information about final salary, compensation, and any other entitlements due
8. Company Property: Request for return of company property and documentation
9. Closing Statement: Expression of appreciation and future reference provision
10. Signature Block: Space for authorized company representative's signature, name, and title
1. Certificate of Employment: Offer to provide a certificate of employment upon request, optional but recommended as per Indonesian business practice
2. Transition Handover: Include if there are specific handover requirements or outstanding tasks to be completed
3. Non-compete Reminder: Include if the original contract contained non-compete or confidentiality clauses that extend beyond the employment period
4. Future Employment Possibilities: Include if there's potential for future employment opportunities or if company policy allows rehiring
5. Exit Interview: Include if the company wishes to conduct an exit interview as part of the termination process
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, unused leave, and any other entitlements
2. Company Property Checklist: List of company items to be returned before the last day
3. Handover Document List: If applicable, list of documents and tasks to be handed over before departure
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