Termination of employment (PHK) is a process that is often unavoidable in the world of work.
While this process can be a difficult moment for both the employee and the company, conveying clear and precise information through a termination letter is an important step to ensure that this process goes well and according to the law.
Those of you who are facing this situation, both as employees and employers, need to understand that a termination letter is not just a formality document.
It must include various important elements that are regulated by law, to avoid potential legal issues later on.
Before we discuss what needs to be in the letter, let’s first look at what a termination letter is and why it is important to take it seriously.
Points that must be included in the termination letter
In a termination letter, there are several important aspects that must be listed.
Here are some of them:
1. Identity of Parties Involved
The complete identity of the company and the employee is an essential component that must be included in every termination letter.
In this context, the company identity should include the company name, complete address, and valid contact information.
Meanwhile, the employee’s identity should include their full name, employee identification number, and last position or job title.
The importance of including these identities is to ensure that there are no administrative errors and that the layoff process is carried out appropriately.
A clear identity will also make it easier for both parties to keep this document as a valid archive and as written evidence if one day it is needed for legal purposes.
2. Reason for Termination of Employment
Any decision to terminate employment must be based on clear and strong reasons.
The reason for termination should be explained in detail in the termination letter so that the employee understands why this action was taken by the company.
These reasons can vary, ranging from decreased performance, company restructuring, to violations of the company’s code of ethics or internal rules.
In this case, you need to be careful not to make the reasons too general or ambiguous, as this could lead to potential disputes in the future.
Make sure that the reasons listed are in accordance with the facts and are supported by clear evidence if proof is needed before the law.
3. Date of Expiration of Employment Relationship
Furthermore, the date of the end of the employment relationship is also an element that should not be missed in the termination letter.
This date officially marks when the employee is no longer bound to the company and the employee’s rights regarding compensation or benefits end.
You need to ensure that this date is in accordance with the applicable rules, especially if there is a notice period that must be adhered to.
Setting the right date will also provide clarity for employees as to when they should leave their duties and when they should start looking for a new job.
Therefore, it is very important to include this date accurately.
4. Rights and Obligations After Termination
The termination letter should also explain the rights and obligations of both parties after the termination occurs.
These rights include compensation that must be received by employees, such as severance pay, benefits, and other rights stipulated in labor laws or employment agreements.
In addition, you also need to include obligations that must be fulfilled, such as the return of company assets that are still controlled by employees or the implementation of other obligations that must still be completed after termination.
Submitting this information in detail can help avoid misunderstandings and disputes in the future.
5. Dispute Resolution Procedure
If there is a potential dispute related to the termination decision, the termination letter must include dispute resolution procedures that can be pursued by the employee.
This can be in the form of a referral to the company’s internal mediation institution or the authorized industrial relations court.
The submission of this procedure provides clarity to employees regarding the steps they can take if they are dissatisfied with the decision taken.
You as a company need to prioritize peaceful and fair dispute resolution, so that it does not have a negative impact on the company’s image.
Thus, employees will feel more valued even if they have to accept the layoff decision.
Other Factors to Consider in a Termination Letter
After knowing the important elements that must be included in a termination letter, there are several other factors that you also need to pay attention to to ensure that the termination letter is legally compliant and can be accounted for in the future.
These factors are often the little things that are forgotten, but can have a big impact if ignored.
Before drafting a termination letter, you should consider the following things that can affect the validity of the letter.
Pay close attention so that you don’t miss out on any information and ensure that the whole process goes well and correctly.
1. Language Used
The language used in the termination letter must be clear, straightforward, and not lead to multiple interpretations.
The use of inappropriate or overly complicated language can lead to misunderstandings and disputes in the future.
Therefore, make sure that every sentence written in the termination letter is easily understood by the employee concerned.
In addition, it is important to pay attention to the applicable linguistic rules, especially if you work in an environment that involves foreign employees.
In such cases, the termination letter may need to be translated into a language that the employee can understand to avoid communication problems.
2. Consultation with Legal Experts
Although the termination letter can be drafted by the HR department or company manager, it is highly recommended to consult with a legal expert first.
This consultation is important to ensure that the termination letter is in accordance with applicable laws and regulations and does not violate employee rights.
This can also reduce the risk of disputes that can lead to litigation in the future.
You can get legal assistance from
By consulting, you can ensure that the entire process runs smoothly and minimize potential problems in the future.
3. Verification and Approval
Once the termination letter has been drafted, the next step is to verify and obtain approval from the relevant authorities within the company.
This verification involves double-checking all the information contained in the termination letter to ensure there are no errors or mistakes that could cause problems in the future.
In addition, you need to get approval from management or other relevant parties before the termination letter is delivered to the employee.
This approval shows that the termination letter is in accordance with company policy and has gone through an adequate evaluation process.
4. Mailing in the Right Way
How the termination letter is delivered to the employee is also an important factor that should not be ignored.
The termination letter should be delivered directly to the employee by the supervisor or HRD, with a detailed explanation of the contents of the letter.
Proper delivery will help employees accept the decision better.
If the employee is in a remote location or it is not possible to meet in person, then the termination letter can be delivered by registered post or official company email.
However, make sure that this method of delivery can be accounted for and provide valid proof of delivery.
Termination of employment is a process that requires serious attention from the company.
By drafting a termination letter that complies with the law and includes all the essential elements, you can ensure that this process goes well and does not cause problems in the future.
If you need help in drafting a termination letter or facing a dispute related to termination of employment,
With the support of experienced legal experts, you can go through this process with more confidence and peace of mind.
