Relieving Letter 2023: A Comprehensive Guide for Employees & Employers

by Hiration

A relieving letter, also referred to as a resignation acceptance letter, holds significant value in the professional realm, benefiting both employees and employers.

It is an official document issued by an employer to confirm the termination of an employee's services and their release from duties.

This letter serves as proof that the employee has completed their tenure and helps ensure a smooth transition to their next employment opportunity.

We will cover various aspects such as the purpose of a relieving letter, its content, format, and legal implications. Additionally, we will also discuss the importance of relieving letters in the hiring process, the benefits they offer, and how to request a relieving letter from your employer.

What is a Relieving Letter?


A relieving letter serves as an official document issued by an employer to an employee, indicating that the employee's services have been terminated and they have been relieved of their duties.

This formal document serves multiple purposes, both for the employee and the employer. It works as a few notable things, including:

  • Evidence of Employment Termination: A relieving letter acts as an official document that confirms the termination of an employee's services with a company. It provides clarity on the end date of employment and is often required during background checks for new job opportunities.

  • Clearance of Dues and Liabilities: Relieving letter also serves as a confirmation that the employee has cleared all their financial dues and liabilities towards the employer. This includes the settlement of pending salaries, bonuses, reimbursements, and return of any company-owned assets.

  • Positive Recommendation: A well-drafted relieving letter can include positive remarks about the employee's performance, skills, and conduct during their tenure. This can serve as a valuable reference for future employment opportunities, enhancing the employee's professional reputation.

Also read: How to avoid a negative resignation letter?

Relieving Letter Format and Content


Check out this relieving letter template before we move on to discuss its content in detail:

Date

Name of the Employee
Employee Details
Company Name & Address

Subject

Body of the Relieving Letter

Salutation

HR Name and Signature

Also read: What points to remember before submitting a two-week notice letter to the employer?

Let us now break down the body of the relieving letter into 5 parts:

  • Resignation Acceptance and Last Working Day: The introduction confirms the acceptance of the employee's resignation and specifies the date of their last working day.

  • Employment Details: This bit provides essential information, such as the employee's designation, department, and period of employment. It may also highlight the employee's roles, responsibilities, and notable achievements during their tenure.

  • Dues Clearance: The relieving letter explicitly states that the employee has settled all financial obligations towards the employer, including pending salaries, bonuses, loans, and any other dues.

  • Positive Remarks: When applicable, the letter includes favorable remarks about the employee's performance, conduct, and contributions to the organization. These accolades enhance the employee's professional profile.

  • Wishes for Future Success: The relieving letter concludes by expressing heartfelt wishes for the employee's future endeavors and continued professional triumphs.

Also read: How to prepare for the question “Why did you leave your last job”?

Legal Implications of a Relieving Letter


Relieving letters have legal implications for both employers and employees. It is important to understand the legal aspects associated with these documents:

  • Employment Verification: A relieving letter serves as a crucial document during background checks conducted by prospective employers. They validate an individual's employment history and help in verifying their claims.

  • Preventing Legal Disputes: By issuing a relieving letter, employers ensure that the terms of separation are documented. This reduces the chances of legal disputes related to wrongful termination, non-payment of dues, or breach of contract.

  • Employee Rights and Entitlements: Relieving letters often include a statement acknowledging that the employee has received all their statutory benefits and entitlements, such as gratuity, provident fund, and leave encashment.

  • Non-Disclosure Agreements: In some cases, relieving letters may contain clauses related to confidentiality, non-disclosure, or non-compete agreements. Employees must carefully review such clauses to understand their rights and obligations.

Also read: How to write an employment verification letter in 2023?

Importance of Relieving Letters in the Hiring Process


For employers, relieving letters play a vital role in the hiring process. They offer numerous benefits, including:

  • Assessment of Work Ethics: A relieving letter may include details about an employee's conduct, performance, and ability to work in a team. This helps employers assess the candidate's work ethics and professionalism.

  • Risk Mitigation: By thoroughly reviewing relieving letters, employers can mitigate the risk of hiring individuals with a history of poor performance, disciplinary issues, or legal disputes.

Also read: What happens if you lie on your resume in the United States?

Request for Relieving Letter


How to write a letter requesting a relieving letter? If you are an employee seeking a relieving letter from your employer, follow these steps:

  • Review Company Policies: Familiarize yourself with your company's policies and procedures related to relieving letters. Understand the timeline and requirements for obtaining one.

  • Submit a Written Request: Draft a formal written request addressed to the appropriate authority within your organization, clearly stating your need for a relieving letter. Specify your last working day and provide any relevant details that may be required.

  • Follow-up: If you do not receive a response within a reasonable timeframe, follow up with a polite reminder. Be persistent but maintain professionalism.

  • Escalate if Necessary: If your employer does not comply with your relieving letter request or denies issuing a relieving letter without a valid reason, consider seeking assistance from an employment lawyer or relevant regulatory authorities.

Hiration pro tip:
If your employer is denying you a relieving letter without any good reason, you can seek legal help from sources such as state labor departments, employment lawyers, or the Equal Employment Opportunity Commission (EEOC).

Also read: How do I write a letter of request in 2023?

Relieving Letter FAQs


We have compiled a list of commonly asked questions concerning relieving letters and have briefly answered them to clear your doubts:

How Do I Write a Relieving Letter?


A relieving letter should include a clear statement of the employee's resignation acceptance and the last working day, along with any outstanding dues or obligations to be settled. The order of a relieving letter should be as follows:

  • Header
  • Date
  • Salutation
  • Introduction
  • Details of employment
  • Clearance of dues
  • Positive remarks
  • Wishes for future endeavors
  • Signatures

Is it Mandatory to Issue a Relieving Letter?


Issuing a relieving letter is not mandatory by law, but it is a common practice for employers to provide a relieving letter to employees as a formal acknowledgment of their resignation and to facilitate their future employment opportunities.

What Happens if a Company Holds a Relieving Letter?


In the United States, if a company holds a relieving letter, the affected individual may face difficulties in securing future employment or may have challenges in proving their work experience.

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