Relieving Letter Importance, Format & Sample

We always look forward to new opportunities that can provide us with a platform for skill development and career growth. Be it job change or pursuing higher education abroad, one must be cautious with the process of resignation and handover. Just like an offer letter, appointment letter, or joining letter, a relieving letter is also an important document.

All You Need to Know About Relieving Letter

Co-authored by Parinita Gupta

What is a Relieving Letter?

Relieving letter is the formal way of informing the employee that his/her resignation has been accepted and he is relieved from his responsibilities and duties he/she was bound with subject to the contract of employment signed by him/her. This letter is required to be submitted to future employers.

Whenever you leave a job, you receive a relieving letter from your employer. This is important as it signifies the fact that you’ve left your job with the utmost dignity and have carried out all the final formalities and duties towards the company you were once a part of. Now, many would say that a relieving letter is absolutely unnecessary but to your new employer, it is not, and therefore to you, it shouldn’t be either.

A new employer wants to make sure that you, as an employee, are a reliable and committed individual.

Why is a Relieving Letter Important?

A relieving letter is a crucial record issued to a corporation at the time of leaving an organization. It is a manner of formal conversation among the enterprise and the corporation for accepting the resignation letter.

This is important because, while joining a new company an employee is asked to submit the relieving letter from the previous organization. This acts as written proof that the employee has left the previous company without any issues.

Confidentiality and Non-Disclosure Agreement

Several employers while hiring you also make bonds/contracts explicitly stating that your research/innovative works shall be theirs during your term of employment with them. This also technically means that without the relieving letter, you won’t be let go of that bond.

The document is extremely crucial so as to explicitly resign and be relieved of a company’s duties. It’s usually issued on your last working day, however, sometimes companies issue the letter after 40-60 days along with a payslip for the full and final settlement.

Difference between Resignation Letter and Relieving Letter

A resignation letter communicates your intent to leave the organization you right now work for. It is written by the employee.

You ought to compose a resignation letter since it’s an expert activity, regardless of your profession.

A resignation letter formally pulls out to your manager that you’re leaving the work and another person should be recruited to supplant you and take on your obligations.

A relieving letter is a conventional letter that is given to the worker at the hour of leaving an association. It is the conventional method of advising the worker that his/her resignation has been acknowledged and he is soothed from his obligations and obligations he/she was bound with dependent upon the agreement of business endorsed by him/her.

A relieving letter is issued by the employer (organization). Hence, it is important for the future employer. You might not receive your joining letter in the new organization unless you provide a relieving letter.

Relieving Letter Format

A relieving letter contains specific details of your employment including the notice period you served before leaving the company, your joining date, annual CTC, last working details, designation, etc. Presenting a relieving letter in a proper, systematic way is important, and therefore it’s important that you know the specific contents contained within a relieving letter.

Contents

So, here’s what it’s supposed to contain:

  1. Date of issue: First and foremost, part of the letter, i.e., the date on which it is issued on. This is important to avoid any disputes raised later for whatever the reason may be.
  2. Your details: After the date, the letter’s supposed to mention your specific personal and profession details, i.e., your full name, designation, department, and your employee ID. Lastly, it’s also supposed to have the name of the company and/or any brands of it that you’re associate with directly.
  3. Subject line: This is the smallest yet the most important part of the letter. i.e., the main reason why the letter has been issued and what purpose does it serve.
  4. Resignation details: This is the part where the letter further dives into minor specifics regarding your resignation, i.e., the procedure that you would have to follow on your last day/week to make sure that you dispose off of your duties smoothly without causing any turbulence within the organization. This contains the notice period, things you’d have to return, security access, clearance, banking details etc.
  5. Final assurances: This section mentions about your dues/ full and final settlement/ arrears etc. and a stipulated time within which it would be cleared
  6. Statement of appreciation: Sometimes, chances are, when you’re in bad terms or leaving on bad terms, employers might skip this. Nonetheless, as it already suggests, this statement contains some appreciation about your contributions towards the organization and good luck for your future endeavors. It might also touch on subjects of your personality, character, attitude towards work and people etc.
  7. Signature: Lastly, after all the formalities and specifics, the letter is then signed off with “sincerely” and your employer’s name, designation within the organization and date of issuance once more.

Relieving Letter Sample

relieving letter format sample
Source: Wisdom Jobs

How to Get a Relieving Letter in case of Employment Termination

There is a fine line between termination and resignation. The person being terminated is often being asked to resign to save face. The difference between resignation and dismissal can be very noticeable, especially in the calculation of severance and when applying for the next job.  

Termination vs Resignation

The main difference between the termination of employment and resignation is the person that initiates the termination or the resignation.

  • Resignation refers to the employee’s voluntary departure.
  • Termination means that the employer decides to terminate the employment relationship, which is also known as dismissal, firing, or lay off.

This line is frequently blurred when an employee is asked to resign after an unsatisfactory performance or other work-related issues (e.g. misconduct or harassment).

In case you haven’t done any one of the following things, you can ask for a reliving letter from your employer:

  1. Thefts, damage to company properties
  2. Sexual harassment cases
  3. Absconding to work
  4. Irregular attendance
  5. Criminal offences

Stigma with Employment Termination

Earlier, “termination of employment” was considered an extremely unceremonious thing. With the growth of industry, diversification, and globalization, there is a marked change.

These days, termination could be for various reasons including the closure of the process or branch due to which further employment cannot be rendered, inability of the company to pay salaries due to resource constraints, post-lay-off, etc.

This category of termination is basically due to the inability of the employer to provide work and not due to any negative action of the employee. Normally, in such cases, the organizations do issue relieving letters.

About Parinita Gupta:

Parinita is a full-time banking professional. Additionally, she is also a passionate blogger and digital marketer.

She mostly writes about the Banking & Finance, Technology, and FinTech sector. But, she also enjoys writing on other topics as well.  You can follow her on Twitter.

Featured Image Source: Shine Learning

Sources: 1, 2, 3, 4, 5, 6, 7.

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