What Is a Relieving Letter? Format, Importance & How to Write One

Of all job-related documents, a relieving letter is the most crucial one that an employee must have by the end of the full and final settlement day. If you have recently planned to change your job, make sure you have it before leaving the company. 

Without it, there is no proof that you are free from all the potential dues and liabilities of your previous company. 

This letter is not just crucial for employees, but also for corporations to keep a record of relieved employees. Thus, everyone part of the corporate world must know what this formality is, its importance, and how it is actually done. Let’s learn all about relieving letters in this article.   

What is a Relieving Letter?

A relieving letter is an essential job-related document. When an employee leaves a company, a relieving letter is issued by the concerned employer, confirming the official end of employment. 

This letter serves as evidence that the departing employee is freed from all their roles, functions, responsibilities, and liabilities at a particular company or organization, and is therefore qualified to join a new enterprise. In other words, it signifies the full and final termination of an employee on good terms from the company they are leaving. 

If an employee doesn’t have this formal piece of writing, it can cause trouble with an easy transition into a new workplace. New employers might question the credibility or competence of an employee. Thus, it is always advisable that you don’t forget to take it even though you have received your experience letter. 

That is the meaning of a relieving letter in brief. Let’s now move on to its essential features.

Also Read: Salary Slip Format: Complete Guide to PDF, Word, and Excel

Components of a Relieving Letter 

The relieving letter is made up of various important parts or components. They include information about an employee and their previous company. All the details covered in this letter help verify the employee’s credibility and authenticity. Check out the components outlined below. 

• Employer’s Letterhead: It includes the name and address-related details of the company or employer. 

• Date: It is the date of issuance, which means when the letter was issued or released to the employee leaving. 

• Recipient’s Address: This part comprises the departing employee’s full name and address. 

• Subject Line: Here, the objective of the letter is stated clearly, such as “Relieving Letter for [Name of the Employee].”

• Salutation: This is a piece of formality that includes a formal greeting, such as Dear Deepak or the name of the concerned employee. 

• Body: This is the main section of the letter, like any other essential employment letters or documents. The following points make up the body of the letter. 

• Employee’s Name and Designation: The name of the employee as registered with the company and the name of the position that they held during the term of their employment, such as accountant, manager, sales manager, HR, etc.

• Employment Term/Duration: The body of the relieving letter also includes the tenure or duration of the employment that the employee in question has served. It usually comprises the start and the end dates. 

• Reason for Leaving: Here, the reason for the employee’s departure or leave is mentioned. Typically, resignation is used as a reason for leaving by employers. 

• Acknowledgement of Duties & Appreciation: Relieving letters also briefly touch upon duties in general terms that the employee was responsible for, along with words of appreciation. Appreciations are always given in one or two sentences, such as “Mr. so-and-so has always been a dedicated employee and managed all their responsibilities perfectly with a high level of competence.”

• Clearance Status: This part claims that the employee has returned all the company’s properties that they have been using for their work and thus is now free to take their departure. Clearance comes at the end of the letter’s body. Consider the following sample sentences for an idea: “Mr. so-and-so is free to join any other company, as they are relieved from [the name of the company offering the letter]. They don’t owe anything to the company.” 

• Best Wishes: Well wishes are given to the employee leaving here. 

• Closing: Most common closings that are used in such formal letters are “Sincerely,” “Best Regards,” or “Thank you”. Sometimes, like in an Email, “Thanks and Regards” can also be used. 

Finally, the authorized person at the company has to sign the letter to make it effective to be used wherever required. If you are a separating employee, make sure all the parts are present in your letter of relief. 

Also Read: HR Full Form, Roles, Responsibilities, and Challenges Explicitly Explained

Why Do People Need Relieving Letters?

The relieving letter is required for a variety of purposes. All of them are described briefly below. Mostly, this letter has great importance for employees as they have to show the same at the time of joining new companies. However, it is also important for employers. Let’s start. 

• Documentation of Departure: Through relieving letters, companies often keep a record of relieved employees, who have no dues or obligations left pending.  

• Verification of Clearance: This letter is a piece of clearance evidence that can be used by anyone concerned. It claims that the employee is free from the possession of the previous company’s properties, data, and credentials, and thus has also received all dues. 

• Confirmation of Final Settlement: This document also mentions that the employee has received or will receive all applicable dues.   

• Providing Proof of Employment: When an employee doesn’t have a relieving letter, their credibility, or trustworthiness is indeed challenged. It might exclude them from getting good opportunities. Thus, this written statement serves as proof of employment as well.  

• Facilitating Future Employment: Having a relieving letter in possession helps an employee transition into a new workplace smoothly. 

• Legal Protection: This letter helps both employers and employees stay safe from unnecessary legal actions and hassles in the future. The document is the proof that there is no liability pending on the part of either party.   

These are major points highlighting the importance of a relieving letter. However, other reasons are, such as for visa or immigration, if you are looking for a job overseas, and sometimes, during scholarship applications. 

How to Write a Relieving Letter?

It is easy and simple to write a relieving letter. You just have to know about its components. However, if you haven’t written one before, don’t worry. Learn about the relieving letter format and how it is exactly done below in a few simple steps.  

• Open your favorite document software, MS Word or Google Docs. 

• Set up the company’s letterhead. Your document must show the company name, logo, and address information—key parts of the letterhead. Often, such information goes at the bottom of the letter.

• Add date of issuance.

• After the date, include the employee’s name and address. 

• Write the subject “Relieving Letter.”

• Right after that, add a salutation, such as Dear [Name of the Employee].

• Write the parts of the body as mentioned above separately, such as the employee’s name, designation, duration of employment, etc. 

• Finally, with best wishes, close your letter. 

Don’t forget any point. To make the best use of this information, refer to it when you need to write a relieving letter for an employee. If you want a template or format idea, take a look at the following. 

Relieving Letter Format & Relieving Letter Format PDF

The following is a very basic and easy-to-understand sample relieving letter format, along with its PDF version. Go through it to have an idea & get started.

Relieving Letter Format
Particulars	Specifications	Special Note
Company Letterhead	[Your Company Logo] [Your Company Address]	You don’t have to mention these items on a paper that already has the company’s letterhead printed or formatted on it.
Date	[Date]	Date of issuance
Employee Details	[Employee Name]  [Employee Address]
Subject	Relieving Letter
Salutation	Dear [Employee Name]
Body	This is to inform you that your employment with [Your Company Name] has been terminated as of [Last Day of Employment] in the wake of your resignation. You have successfully completed all your assigned duties and responsibilities during your tenure [from start date] till your very last day with the company.
Best Wishes	We wish you all the best in your future endeavors.
Closing	Sincerely,
Signature/Authorization	[Your Name]  [Your Position]  [Your Company Name]	You don’t have to mention these items on a paper with the company’s letterhead or stamp.

Consider the relieving letter format PDF version. This is how the preceding format will look in a PDF. 

A tip for you: Once you have written the letter, you can convert it into a PDF easily. It doesn’t matter which editor you have used, Word or Google Docs. On Google Docs, you can do it from File > Download from the top menu. For an MS Word file, you can always use an online PDF converter.    

Also Check: Salary Slip Format: Complete Guide to PDF, Word, and Excel

Is a Relieving Letter and an Experience Letter the Same?

A relieving letter is different from an experience letter. The main purpose of a final letter is to formally announce in writing that a particular employee is relieved from their roles and responsibilities at their previous company. 

It is often seen as proof of the fact that the employee was on good terms with their previous employers. As a result, this letter helps an employee get hired in a new company easily without any credibility issues or background check difficulties. 

On the other hand, an experience letter is given to an employee as proof of their professional capacity or capabilities. It shows that a particular employee has really worked somewhere and, thus, has practical experience in the field. In simple terms, an experience letter, as the name suggests, is proof of one’s experience in a particular field of employment.  

Conclusion

A leaving employee must not depart from a company before receiving a relieving letter. Without it, a new employer might doubt the employee’s credibility. Sometimes, employees get relieving letters that aren’t properly formulated, as crucial parts might be missing. In that case, make sure that you know all its essential features and do a quick check once you get it. 

If you find anything missing in your relieving letter, talk to HR or any authorized person about it immediately. You can also use this article as a quick reference guide to see if there is anything missing in your letter. Or, in case you need to write one for your employee, refer to it during the writing process.  

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