Relieving Letter

What is a relieving letter?

A relieving letter is a document issued by an employer to an employee upon the termination of their employment. It serves as a formal confirmation of the employee’s last day of work and the reason for their departure.

It also certifies that the employee has fulfilled all their obligations to the company, such as returning company property and settling any outstanding debts. The relieving letter also typically includes information such as the employee’s job title, their tenure with the company, and any outstanding benefits or compensation they may be entitled to receive.

Components of a relieving letter

A relieving letter typically includes the following components

• Date of issue: The date on which the letter is issued by the employer.
• Employee’s name and information: The employee’s name, job title, and tenure with the company.
• Last working day: The employee’s last working day at the company, including the date and the reason for their departure.
• Fulfillment of obligations: A statement that the employee has fulfilled all their obligations to the company, such as returning company property and settling any outstanding debts.
• Acknowledgment of services: A statement acknowledging the employee’s services and contributions to the company during their tenure.
• Outstanding benefits or compensation: Information on any outstanding benefits or compensation the employee may be entitled to receive, such as unused vacation days or severance pay.
• Contact information: The contact information of the company’s human resources department or other designated individual for further information or clarification.
• Signature: The signature of an authorized representative of the company, such as the HR manager or the employee’s supervisor.

What is the need for a relieving letter?

The need for a relieving letter arises due to the following reasons

• Formal confirmation: This letter serves as a formal confirmation of the employee’s last day of work and the reason for their departure. It also certifies that the employee has fulfilled all their obligations to the company.
• Legal requirements: Some countries may have legal requirements for employers to issue a relieving letter to employees upon termination of employment.
• Record keeping: A relieving letter serves as an official record of the employee’s departure, which can be used for future reference by both the employee and the employer.
• Future employment: A relieving letter can be an important document for an employee to present to a future employer as proof of their employment history and the reason for their departure from a previous job.
• Benefits and compensation: A relieving letter can include information about any outstanding benefits or compensation the employee may be entitled to receive, such as unused vacation days or severance pay.
• Closure: This letter can help bring closure to the employee’s tenure with the company and provide a sense of finality to the employment relationship.