Employee Relieving Letter

What is an Employee Relieving Letter?

A relieving letter is a formal letter that is issued to an employee at the time of leaving an organization after clearing all formalities. It is a formal way of communicating to the employee that the resignation has been accepted. Future employers can ask for relieving letters from the employee from previous organisations since it acts as a written statement of the fact that the employee left previous employment without issues.

What is the difference between an Employee Relieving Letter and a Letter of Termination of Employment?

An Employee Relieving Letter is issued to an employee after they submit a resignation letter and complete all formalities, such as serving notice and paying outstanding dues. On the other hand, a Letter of Termination of Employment is used as a consequence for something done wrong by the employee. Following termination, the employee may also be subject to penalties or legal action.

Is it mandatory to have an Employee Relieving Letter?

Yes, it is mandatory for employers to issue an Employee Relieving Letter when requested by the employee leaving the organization. It acts as proof of relief and nothing is pending from the side of the employee. Ideally, the Employee Relieving Letter should be issued on the last working day or within a few days from the last working day.

What are the prerequisites of an Employee Relieving Letter?

The Employee Relieving Letter is provided only to a full-time or part-time employee when they have completed the resignation notice period required under the employment agreement, settled all pending duties, and completed the exit formalities.

Who cannot enter into an Employee Relieving Letter?

The Employee Relieving Letter is not issued to a consultant under the Consultancy Agreement or a service provider under the Service Agreement.

What has to be done once an Employee Relieving Letter is ready?

The letter should be printed on the organisation's letterhead with which the employee was employed and signed by the employer or an authorized representative of the employer such as the HR Manager or Director.

What if the employer denies an Employee Relieving Letter?

Every employer must provide a proper Employee Relieving Letter to the departing employee. Often the employer holds the relieving letter for not serving proper notice period or clearing any pending dues. In any case, the employee can send a written letter asking for the reliving letter and if not provided, the employee can file a complaint by approaching the local labour commissioner.

What must an Employee Relieving Letter contain?

An Employee Relieving Letter must include the following details:

• Employee details: name, address and other details of the employee.
• Date of joining: Joining date of the employee in the organisation.
• Date of relieving: Last working day of the employee in the organization.
• Acknowledgement of resignation: confirmation and receipt of resignation.
• Completion of notice period: confirmation that notice period was served.
• Clearance of dues: Statement that all dues have been cleared.

Which laws are applicable to an Employee Relieving Letter?

In terms of the Shops and Establishments Act of most states, a service certificate/relieving letter should be given promptly to the employee upon cessation of employment.

The rules and regulations under the Indian Contract Act, 1872 will be applicable.

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