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Notice Of Non Renewal Of Employment Contract Template for Indonesia

A formal written notice document used in Indonesia to inform an employee of the employer's decision not to renew their fixed-term employment contract. This document must comply with Indonesian Manpower Law (Law No. 13 of 2003) and related regulations, particularly Government Regulation No. 35 of 2021. It serves as official communication of contract non-renewal and typically includes details such as the last working day, reference to the original employment contract, and any applicable final settlement information. The document plays a crucial role in properly concluding fixed-term employment relationships within Indonesian legal requirements.

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What is a Notice Of Non Renewal Of Employment Contract?

The Notice of Non-Renewal of Employment Contract is a crucial document used in Indonesian employment relationships when an employer decides not to extend or renew a fixed-term employment contract (PKWT). This document must be issued in compliance with Indonesian Manpower Law and should be provided with sufficient notice before the contract's end date. It serves multiple purposes: formally communicating the non-renewal decision, establishing the final working day, outlining any transition requirements, and addressing final entitlements. The notice should be prepared with careful attention to detail as it forms part of the official employment records and may be scrutinized in case of any subsequent employment disputes. In the Indonesian context, proper documentation of non-renewal decisions is particularly important due to strict regulatory requirements around fixed-term employment relationships.

What sections should be included in a Notice Of Non Renewal Of Employment Contract?

1. Letter Header: Company letterhead including full legal name, address, and contact details

2. Date: Current date when the notice is issued

3. Employee Details: Full name and address of the employee, employee ID number if applicable

4. Subject Line: Clear indication that this is a Notice of Non-Renewal of Employment Contract

5. Contract Reference: Details of the current employment contract including its start date and end date

6. Non-Renewal Statement: Clear statement of the company's decision not to renew the employment contract

7. Last Working Day: Explicit mention of the final day of employment

8. Legal Basis: Reference to relevant clauses in the employment contract and Indonesian labor law regarding non-renewal

9. Acknowledgment Request: Request for the employee to acknowledge receipt of the notice

10. Signature Block: Space for authorized signatory's name, title, and signature

What sections are optional to include in a Notice Of Non Renewal Of Employment Contract?

1. Reason for Non-Renewal: Include when it's appropriate or required to provide explanation for the non-renewal decision

2. Transition Arrangements: Include when there are specific handover requirements or transition period arrangements

3. Final Settlement Details: Include when detailing final salary, unused leave, and other entitlements

4. Return of Company Property: Include when there are specific company assets that need to be returned

5. Non-Compete Reminder: Include when the original contract contains non-compete or confidentiality clauses that continue after employment

6. Reference Offer: Include when the company is willing to provide employment references

What schedules should be included in a Notice Of Non Renewal Of Employment Contract?

1. Original Employment Contract: Copy of the current fixed-term employment contract being referenced

2. Final Entitlements Calculation: Detailed breakdown of final payment including salary, unused leave, and any other entitlements

3. Handover Checklist: List of tasks, documents, and responsibilities to be transferred before the last working day

4. Company Property Checklist: List of company assets to be returned before the last working day

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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