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Separation Certificate Template for Indonesia

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Key Requirements PROMPT example:

Separation Certificate

I need a separation certificate for an employee who has completed their contract, detailing their employment period, position held, and confirmation of all entitlements and obligations being fulfilled. The document should also include a statement of the reason for separation and any applicable severance pay details.

What is a Separation Certificate?

A Separation Certificate documents the official end of an employment relationship in Indonesia, commonly known locally as "Surat Keterangan Berhenti Kerja." This legally required document outlines key details about the employment period, including the worker's position, length of service, and reasons for separation.

Indonesian employers must provide this certificate to departing employees under the Manpower Act (UU No. 13/2003). It serves as crucial proof of previous employment for workers seeking new jobs and helps them access unemployment benefits or labor dispute reֱ. The certificate also protects employers by formally recording the terms of separation and any final settlements.

When should you use a Separation Certificate?

Get a Separation Certificate ready as soon as an employee's departure is confirmed - don't wait until their last day. Indonesian law requires employers to issue this document for all employment endings, including resignations, terminations, retirements, or contract completions.

Having this certificate prepared early helps avoid legal complications and ensures smooth transitions. Employees need it for their next job applications, unemployment benefits, and bank loans. For employers, timely preparation prevents potential labor disputes and maintains compliance with Ministry of Manpower regulations. Many companies prepare it alongside final settlements and exit interviews.

What are the different types of Separation Certificate?

  • Basic Employment Termination Certificate: States essential employment details and reason for separation - standard format required by Indonesian labor law
  • Comprehensive Separation Package: Includes additional sections covering final settlements, benefits status, and non-compete clauses
  • Project-Based Contract Completion: Specifically formatted for fixed-term workers, focusing on project completion details
  • Mutual Agreement Separation: Details terms agreed upon by both parties, often used in amicable separations
  • Retirement Separation Certificate: Contains special provisions for pension benefits and retirement arrangements

Who should typically use a Separation Certificate?

  • HR Managers: Prepare and process Separation Certificates, ensuring compliance with labor regulations and company policies
  • Departing Employees: Receive and use the certificate as proof of previous employment for future job applications or benefits claims
  • Company Directors: Review and sign certificates, particularly for senior staff departures
  • Legal Teams: Verify content meets Indonesian labor law requirements and protects company interests
  • Ministry of Manpower Officials: May request these certificates during labor inspections or dispute reֱ
  • Employment Agencies: Use certificates to verify candidates' work history and separation terms

How do you write a Separation Certificate?

  • Employee Details: Gather complete name, ID number, position title, and employment period dates
  • Separation Information: Document exact reason for separation, last working day, and notice period details
  • Payment Records: Calculate final salary, outstanding leave, severance pay, and other benefits
  • Company Information: Include official company name, address, and registration details as per Ministry of Manpower records
  • Compliance Check: Review against UU No. 13/2003 requirements and company policies
  • Authorization: Prepare for signatures from HR manager and authorized company representative
  • Document Format: Use our platform's templates to ensure all mandatory elements are included correctly

What should be included in a Separation Certificate?

  • Header Information: Company letterhead, reference number, and date of issuance
  • Employee Identity: Full name, national ID number, and last position held
  • Employment Period: Start date, end date, and total length of service
  • Separation Details: Clear statement of separation reason aligned with UU No. 13/2003 categories
  • Benefits Statement: Confirmation of all entitlements paid and settled
  • Conduct Declaration: Statement about employee's performance and behavior during employment
  • Authorization Section: Company official's name, title, signature, and company stamp
  • Legal Compliance: Reference to relevant labor laws and regulations

What's the difference between a Separation Certificate and a Separation Agreement?

A Separation Certificate differs significantly from a Separation Agreement in both purpose and legal effect. While both documents relate to employment termination, they serve distinct functions in Indonesian labor law.

  • Legal Nature: A Separation Certificate is a mandatory document confirming employment ended, while a Separation Agreement is a negotiated contract detailing mutual terms of departure
  • Timing: Certificates are issued after separation occurs, but Agreements are typically signed before the actual separation
  • Content Scope: Certificates focus on documenting employment facts and reason for departure, while Agreements outline detailed terms, conditions, and mutual obligations
  • Legal Requirements: Every employment termination needs a Certificate under Indonesian law, but Agreements are optional and usually used for senior positions or complex separations
  • Primary Purpose: Certificates serve as proof of past employment, while Agreements protect both parties' interests and prevent future disputes

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