A relieving letter is a formal letter the employer gives to the employee at the time of leaving, denoting that employee has no dues left with the organization, has followed the company’s exit policy, and finished all the required formalities. It also takes assurance from employees not to disclose any confidential information after termination for specific years.
The letter takes employees’ confirmation of all the above-stated requirements, and it is regarded as an official notification of the end of employment with the organization. Employees can ensure after the appointment of the letter that they are exempted from the duties with the current organization and can be a part of any other organization.
A relieving letter is important for both the company and the employee. For a company, it is written documented proof explaining that the mentioned employee has fulfilled all his duties and responsibilities assigned to him during his tenure in the company and was relieved from further responsibilities. So that the company can plan accordingly and find the replacement on time.
For an employee, it is also important because their new employer might ask for this letter before finalizing their employment. The letter acts as their proof of innocence as it mentions that they performed their duties and responsibilities honestly without any wrongdoings.
There are certain things you should know before creating relieving letter format:
Here is an example of the relieving letter with its format.
factoHR’s HR software provides a letter generation feature through which you can generate multiple letters, like joining letter, transfer letter, appraisal letter, etc with just a click. HR software also offers other features like document management, workflow-based approval, organizational chart, salary management, survey and many more, Try it now.
The letter should include the following components;
A relieving letter is a document that completely assures your new organization that you are no longer associated with your previous organization. This might also represent your sense of awareness towards the organization. Several organizations emphasize on providing a letter to the employee as it declares that there are no financial dues towards the organizations.
A letter is written after the acceptance of the employee’s resignation, and it is the final procedure after the resignation. Whereas the experience letter is written to certify a particular employee’s experience for the span of time they have worked for your company. It is written as proof for the new employers about the employees’ experience.
Relieving letters are not entirely mandatory. Although, some organizations consider it as mandatory proof to make sure the employee has completed all the formalities with the previous firm and the employee has resigned from the organization after completing the dues and the mandatory procedures.