What is a Relieving letter? 

A relieving letter is a formal document issued by an employer to an employee upon their resignation. It serves as a proof that the employee has fulfilled all their obligations and has no pending dues with the company.

In India, a relieving letter is not a legal requirement. Even though, having this document helps both the employer as well as employee. For example, A company that provides a relieving letter to its employees can increase their professional reputation. On the other hand, having a relieving letter makes the employee’s future job hunts easy. Like these, a relieving letter has various benefits. 

Why is it important?

The following points highlight the importance of a relieving letter:

• Proof of Employment: It’s an official confirmation of the employee’s employment with the previous employer. This document is often required by new employers during background checks.
• Professional Reputation: A relieving letter reflects well on the employer, shows they are professional and follow good HR practices. It shows the company values its employees and follows proper exit procedures.
• Employee Verification: New employers often require relieving letters during the hiring process. By issuing this document, employers help their former employees get new job opportunities which reflects well on the company’s overall HR practices.
• Career Transition: It facilitates a smooth transition to new employment by having a formal record of the employee’s exit. 

How to write a relieving letter?

Writing a relieving letter is pretty simple. It is less complex when compared to other HR documents. Generally, relieving letters are issued on the letterhead of the organisation. Also, as this is an official document make sure that you use a formal tone. The following is a short format that you could use to create your company’s relieving letter:

Date

Name of the employee

Employee ID

Designation of the employee

Subject

Dear (name of the employee)

Body of the letter

Regards,

Signature

Name of the employer or HR manager

While writing the body of the letter, make sure to add details such as the relieving date and a short appreciation of their work.

Relieving letter VS Experience letter

Generally, both relieving letters and experience letters are issued when an employee is leaving a company. However, their purpose is different. 

As we discussed above, a relieving letter is mainly used as a confirmation of the employee’s release from the company and completion of exit formalities. On the other hand, experience letters mainly put emphasis on the employee’s job role, tenure, skills, and contributions. It provides a comprehensive overview of the employee’s work history and performance. Experience letters can also be issued anytime during the employment tenure.