What Is A Relieving Letter - Sample Format

What is a relieving letter?

A relieving letter is an official document issued by the employer to its employee who is leaving the organization. It serves as a notice that employee resignation has been accepted and the employee has completed their notice period and all necessary action related to their resignation or termination. The letter is usually given to the employee on their last working days or a few days later.

Why is it important for both the employer and the employee?

Relieving letter is important for both employer and employee in terms of:

For employers:

Formal Closure: Relieving letter acts as a formal agreement between employer and employee that ensures the employment relationship has been formally terminated and any obligation towards the employer has been fulfilled. It also helps in avoiding any potential legal disputes or misunderstanding in the future.
Record Keeping: Relieving letter is issued by the HR department which acts as a part of employee record in the company and serve as a proof that the employee is no longer associated with the company, this information is crucial for future and verification purpose like if employee wants to rejoin or to know whether they were fired or not.
Resource Management: knowing that an employee is relieved from the company allows the HR to plan for resource allocation and hire new employees to fill the vacant position and ensure smooth onboarding and operation.
Document for Audit: In case of compliance check, maintaining and having proper track of employee documentation including relieving letter is needed to demonstrate adherence to employment laws and regulations.

For employees:

Verification for future employers: When looking for new opportunities a relieving letter is needed by the employee as a proof of previous work experience and the end of previous job.
Resignation Formality: Receiving a resignation letter signifies that the employee has completed all the necessary formalities needed for resignation and has been officially released from their duties, allowing them to look for new opportunities without hampering any current work.
Smooth Background checks: Background verification are processes conducted by employers that include verifying previous work experience and the authenticity of an employee claiming to have worked in a previous organization. A relieving letter can help ease the process and facilitate a seamless background check.
No Legal Complication: Without a relieving letter an employee may face difficulties if the previous organization claims that the person is still associated with the organization and has not properly resigned. This would potentially damage employee reputation and limit the opportunity to find a new job.

How does a relieving letter differ from other employment-related documents?

The relieving letter differs from other employment documents in terms of:

Purpose:

Relieving letter: The purpose of the relieving letter is to formally acknowledge that the employee has officially resigned from the company and they have been relieved of their duties to the employer.
Offer Letter: An offer letter is given to prospective employees before they join the organization, outlining the terms and conditions of employment including job position, salary, and other benefits.
Appointment letter: It is issued to candidates who have accepted the offer letter and it also provides additional details like date of joining, reporting structure and more.
Experience certificate: It is a document issued by the employer after the employee leaves the organization and it provides a detail summary of the employee’s tenure, job roles and contributions during their employment.

Content:

Relieving letter: It includes employee name, designation, joining date, last working day, confirmation of completion of notice period, acknowledgement of dues settled.
Offer letter: The offer letter includes the job title, compensation details, terms and conditions of the employment, joining date and other specific instruction related to the job.
Appointment letter: It contains details like the employee name, designation, joining date, reporting structure, job responsibilities and any additional terms agreed upon during negotiation.
Experience certificate: This document covers overview of employee tenure, job roles, skills demonstrated and a positive employee assessment.

Timing:

Relieving letter: This is issued at the time of employee departure from the company, usually on their last working day.
Offer letter: This is issued to a candidate before they join the company as a part of the formal job offer process.
Appointment letter: It is given to the candidate after they have accepted the job offer and before they start their job.
Experience certificate: This is issued to the employee after they have left the organization and completed their tenure.

What information should a relieving letter typically include?

A relieving letter typically includes the following information:

Employee Details: The letter should begin with employee full name, job title and designation and the employee id.
Employment dates: It should mention the employee’s date of joining the company and the last day of working.
Notice Period completion: The relieving letter should confirm that the employee has served the notice period.
Reason for Departure: This may include the reason for leaving the company.
Acknowledgement of Dues: It states that all the financial dues, obligation and salary or outstanding payment have been settled with the employee.
Return of company property: if the employee had company owned assets, the letter should acknowledge that these items have been returned.
Appreciation: Express appreciation for the employees contribution and dedication during their tenure for the company.
Good Wishes: Extra best wishes for employee future endeavors and success in their career.
Company Stamp: The relieving letter should bear the company official stamp or seal along with authorized signature usually from hr department.
Contact Information: Sometimes hr provides their contact details and relevant personnel whom a new employer may contact for background verification.

Relieving letter format:

[Your Company’s Letterhead]

[Date: DD/MM/YYYY]

To,

[Employee’s Full Name]

[Employee’s Address]

Dear [Employee’s First Name],

Subject: Relieving Letter

We are writing to confirm that your employment with [Your Company Name] has been officially terminated, and we hereby provide you with this relieving letter as proof of the same.

This letter serves as confirmation that you joined our organization on [Date of Joining] and your last working day with us was on [Last Working Day]. We acknowledge that you have completed the notice period of [Notice Period Duration], as per your employment contract.

We appreciate the contributions and dedication you have demonstrated during your tenure with us. Your hard work and commitment have been invaluable to the growth and success of our organization.

As of your last working day, all financial dues and settlements have been cleared, and any company-owned assets provided to you have been returned.

We wish to express our best wishes for your future endeavors. May you achieve continued success and growth in your professional journey.

For any further queries or assistance, you may contact the HR department at [HR Contact Details].

Once again, thank you for your service to [Your Company Name].

Sincerely,

[Your Name]

[Your Designation]

[Company Stamp/Seal]

[Authorized Signatory’s Signature]

Steps to Obtain a Relieving Letter:

Obtaining a relieving letter typically involves the following steps:

Submit Resignation to the company: The first step to obtain a relieving letter is to formally submit a resignation to your employer. This can be done through a resignation email to your employer or submitting a resignation in your hr software, which should mention your intention to leave the company and your last working day as per the notice period (if applicable).
Serve Notice Period: If your employment contract includes a notice period, ensure that you serve the entire notice period as required. During this time, continue to fulfill your job responsibilities and maintain a professional attitude.
Complete Exit Formalities: Before your last working day, complete all necessary exit formalities as per the company’s policy. This may include returning company-owned assets, clearing outstanding dues, settling any pending work, and handing over responsibilities to the concerned individuals.
Request the Relieving Letter: Once you have completed the notice period and exit formalities, formally request the HR department or your reporting manager for the relieving letter. You can do this through an email or in-person conversation, expressing your need for the letter for future employment purposes.
Drafting the Letter: The HR department or concerned personnel will draft the relieving letter on the company’s letterhead. The letter should include your employment details, joining date, last working day, acknowledgment of notice period completion, and other relevant information as mentioned in the previous format.
Review and Approval: The drafted relieving letter will be reviewed and approved by the authorized signatory, usually a senior HR representative or a member of the management team.
Sign and Stamp: Once approved, the relieving letter will be signed by the authorized signatory and stamped with the company’s official seal.
Handover of the Letter: The HR department will provide you with the original copy of the relieving letter. It’s essential to keep this document safe as it serves as proof of your employment with the company and the formal termination of your relationship.
Express Gratitude: It’s courteous to thank your employer and the HR department for providing you with the relieving letter. This gesture helps maintain a positive professional relationship and can be beneficial for future references.
Future Use: When applying for new job opportunities, include a copy of the relieving letter along with other relevant documents in your job application to validate your work experience and ensure a smooth hiring process with potential employers.

How does a relieving letter help in addressing employment gaps during background checks?

A relieving letter can be really helpful in addressing employment gaps during background checks for new job applicants.

Verification of employment dates: The relieving letter includes the date of the employee’s last working day which corresponds to the end of their employment with the company. This information helps new employers to verify the exact duration of applicant employment and establish the accuracy of the work experience mentioned in rescue.
Confirmation of departure: The relieving letter confirms that the employee left the organization and their departure was on good terms. This can help dispel any negative reason for the employment gap.
Proof of notice period completion: Relieving letter will indicate the successful completion of the notice period.
Insight into contribution: A well drafted relieving letter provides insights to employee contribution, achievements and professionalism during their job tenure. This can also highlight employee skills and knowledge during times when they were not formally employed.
Employment continuity: the presence of relieving letters can show a continuous employment history, bridging the gap between the end of one job and start of another.

Are relieving letters legally mandated in certain countries or industries?

The requirement for relieving letters can vary from country to country and from one industry to another. It is not universally mandated by law in all countries or industries. Here are some points to consider:

Countries with Common Relieving Letter Practices:
Countries like India, provide relieving letters to their employees. Employers often issue relieving letters to formally confirm the employee’s departure and provide a positive acknowledgment of their service. While it may not be legally mandated by labor laws, it is considered a standard industry practice.

Countries without Standard Relieving Letter Practices:
In other countries, such as the United States, the concept of relieving letters is not as prevalent. Instead, employees generally rely on other forms of documentation, such as employment contracts, offer letters, or experience certificates, to validate their work experience.

Industries with Relieving Letter Practices:
Certain industries, particularly those that deal with sensitive information or require a high level of trust, may have specific guidelines or regulations that mandate the use of relieving letters. For example, the financial sector or government organizations might require relieving letters to ensure proper record-keeping and verification of an individual’s employment history.

Employer-Specific Policies:
Even in countries where relieving letters are not common practice or legally mandated, individual employers may choose to issue relieving letters as part of their internal policies. Some employers consider relieving letters as a professional courtesy to their departing employees and provide them as a standard part of the exit process.

What are the rights of employees if they do not receive a relieving letter?

Here are some steps employees can take in such cases:

Communicate with the Employer: The first step to obtain a relieving letter is to communicate with the previous employer and inquire about the relieving letter. Politely ask for an explanation for the delay or non-issuance of the letter.
Check Employment Contract and Company Policy: Review the employment contract and company policies to determine if the employer is legally obligated to provide a relieving letter. Some companies may have specific policies regarding the issuance of relieving letters, especially if it is a standard practice in that industry.
Contact HR or Management: If the employee’s attempts to communicate with the employer directly are unsuccessful, they can reach out to the Human Resources department or higher management to seek assistance in resolving the issue.
Understanding Legal Requirements: Research the labor laws and employment regulations in the relevant jurisdiction to understand if there are any legal obligations on the part of the employer to provide a relieving letter. In some countries, it might be a legal requirement to issue a relieving letter to departing employees.
Maintain Written Records: Keep a record of all communication with the employer regarding the relieving letter. Maintain copies of emails, letters, or any other communication related to the matter.
Approach Labor Authorities: If the employer continues to deny the employee’s right to a relieving letter and if it is indeed a legal requirement, the employee may consider reaching out to labor authorities or employment tribunals to file a complaint or seek redressal.
Consult Legal Counsel: If the situation escalates and the employee believes that their rights are being violated, they may seek legal advice from an employment lawyer to understand their options and potential courses of action.