Importance of Relieving Letters: A Comprehensive Guide
When the employee resigns from an organization, they request a relieving letter from the company, which is issued by either the HR department or the manager. It is a vital document that confirms that the employee has fulfilled their roles and responsibilities during their tenure, has served their notice period and has no unpaid dues. The relieving letter marks the acceptance of the employee’s resignation by the organization.
Difference between an Experience letter and a Relieving letter
A relieving letter is a far more important document than any experience letter. It is a confirmation letter that the employee has successfully fulfilled their obligations as per the company policies during their tenure and notice period. Therefore, the company has accepted the employee’s resignation. It provides a formal end to the employee’s service to the company and offers proof the company has acknowledged the employee’s notice and wishes them the best for future endeavours.
Experience letters merely convey the experience of the employee in the organization with details of their job roles and responsibilities, work ethics and achievements. It may also include information on the employee’s performance and conduct during their tenure with the company.
Significance of Relieving Letter
A relieving letter serves as solid evidence that the employee fulfilled their obligations during their previous organization’s tenure and has no pending dues. Furthermore, it provides crucial details to the future employer, including the joining date, roles and responsibilities, and the employee’s experience. It also demonstrates to the new employer that there were no issues with the employee’s departure, effectively acting as a letter of goodwill from the former employer to showcase the employee’s character.
Failing to produce a relieving letter from the previous employer for any reason can not only hinder the employee’s ability to join a new company but can also have adverse effects on their career. The relieving letter can safeguard the employer against potential disputes arising from misunderstandings, given that the letter offers concrete proof of the employee’s departure from their previous employment.
It’s worth noting that employers have a legal obligation to issue a relieving letter to employees who have resigned after completing the notice period at their previous job and settling all financial obligations.
Contents of a well-written Relieving letter
A well-written relieving letter consists of various details which are vital for the reference of the future employer. Some of the components that should be included are as follows.
Employee Information
- Full name of the employee
- Employee identification or staff number
- Job title or designation
- Department or division
- Dates of employment (start and end dates)
Employer Information
- Company Name
- Company Address
- Contact Details
Subject of the letter
Date of Issuance:
The Issuance Date is critical to ensure that it was issued by the organization on the employee’s last day in the organization. This is ensures that there no future disputes regarding the employee’s tenure.
Salutation:
It includes the employee’s name preceded by a formal salutation. For example: ‘Dear Nick’ etc.
Body of the letter
In this section, you can write the purpose of employee resignation. It includes the first day and last day of employment of the employee’s working tenure and the other details. It also includes the following details,
Job Performance and Conduct
- A brief statement about the employee’s performance during their tenure
- Any specific achievements or contributions, if applicable
- A statement regarding the employee’s conduct during employment
Appreciation and Settlement:
The employer confirms the full and final settlement of the dues of the employer. The employer may add in words of appreciation, praising the employee’s efforts for the organization and wishing them the best for future endeavors.
Return of Company Property
Mention if the employee has returned all company-owned property, such as equipment, keys, access cards, or documents.
No Objection
A statement indicating that the company has no objection to the employee seeking new employment or pursuing other opportunities.
Clearance Status
Confirmation that the employee has cleared all dues, obligations, or responsibilities with the company, including financial matters, if applicable.
Formalities
While writing the body of the mail, it is essential to ensure the employees receive the full and final settlement after the entire process.
Signature:
The employer stamps the relieving letter with his signature along with the company seal.
Contact Information
Contact details of the HR department or the person to whom future employers or organizations can reach out for verification if necessary.
Non-disclosure agreement:
The letter should include a non-disclosure agreement, which prohibits the employee from disclosing confidential information about the company.
Relieving Letter Format
Relieving letters are generally similar across various professions and industries, but the specific content may vary depending on the organization’s policies and the nature of the job. Here are sample relieving letter formats for different professions:
Relieving Letter for Software Engineer:
[Your Company Letterhead]
[Date]
[Employee’s Name] [Employee’s Address]
Dear [Employee’s Name],
Subject: Relieving Letter
We acknowledge receipt of your resignation letter dated [Date of Resignation Letter], and after careful consideration, we accept your resignation with effect from [Last Working Day], which you have requested as your last working day with [Company Name].
During your tenure with [Company Name], you have been employed as a [Software Engineer/Job Position] since [Joining Date]. We appreciate your dedication and contribution to the organization during your time here.
As of your last working day, you are relieved from your duties at [Company Name]. Please ensure that you return all company property and complete any pending handovers.
We also confirm that your full and final settlement, including any pending dues, if applicable, will be processed and provided to you as per the company’s policies and procedures. This will include any pending salary, benefits, or other payments.
If there are any further formalities you need to complete, kindly get in touch with the HR department to ensure a smooth exit process.
We take this opportunity to express our best wishes for your future endeavours in the software engineering field. Please do not hesitate to contact us should you require any reference or assistance in the future.
Thank you once again for your contributions during your time with [Company Name].
Sincerely,
[Your Name] [Your Title] [Company Name] [Company Contact Information]
Relieving Letter for Sales Representative:
[Your Company Letterhead]
[Date]
[Employee’s Name] [Employee’s Address]
Dear [Employee’s Name],
Subject: Relieving Letter
We acknowledge receipt of your resignation letter dated [Date of Resignation Letter], and after careful consideration, we accept your resignation with effect from [Last Working Day], which you have requested as your last working day with [Company Name].
During your tenure with [Company Name], you have been employed as a [Sales Representative/Job Position] since [Joining Date]. We appreciate your dedication and contribution to the organization during your time here.
As of your last working day, you are relieved from your duties at [Company Name]. Please ensure that you return all company property, including any sales-related materials, and complete any pending handovers or reports.
We also confirm that your full and final settlement, including any pending commissions or incentives, will be processed and provided to you as per the company’s policies and procedures.
If there are any further formalities you need to complete, kindly get in touch with the HR department to ensure a smooth exit process.
We take this opportunity to express our best wishes for your future endeavours in the field of sales. Please do not hesitate to contact us should you require any reference or assistance in the future.
Thank you once again for your contributions during your time with [Company Name].
Sincerely,
[Your Name] [Your Title] [Company Name] [Company Contact Information]
Conclusion
In conclusion, the relieving letter, a vital document, symbolizes the end of one’s professional journey and the start of a new one. It fosters trust and professionalism between employer and employee, ensuring a seamless transition and exit from the company.
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