Difference Between a Relieving Letter and Experience Letter

By in HR

What is the difference between relieving letter and experience letter?

The main distinction between a relieving letter and experience letter is that a relieving letter is issued when an employee is leaving work after turning over his resignation letter, whereas an experience letter can be issued at any time before, during, or after an employee’s resignation.

Employees have the right to get relieving letters and experience letters. Both of these letters are printed on an organization’s letterhead. They always include the sender’s full name, title, and signature. Without these letters, it may be difficult to locate new work.

Sample formats for experience and relieving letter

What is a Relieving Letter?

A Relieving Letter is the formal acknowledgment that an employee is no longer associated with the company and is relieved from their position. It doesn’t usually provide a detailed account of the employee’s work history but rather focuses on the termination of the current employment relationship.

It is typically handed to an employee on their last day of work with the company. It signifies the official release of the employee from their current role and responsibilities. This letter serves as evidence that the employee has completed their final tasks, including handing over all necessary documents and responsibilities to the relevant person or team within the organization.

What to include in a Relieving Letter?

  • Issued on the company’s official letterhead.
  • Contains details of the employee (full name, job title, start date, and end date of employment).
  • Includes details of the company (full name, corporate address, contact details, and date of issuance).
  • May mention the employee’s abilities, though this can vary depending on the issuer.
  • Specifies the employee’s resignation date.
  • Typically includes a statement of appreciation for the employee’s contributions.
  • Provides details of the person issuing the Relieving Letter (full name, job title, and signature).

Not having a Relieving Letter can lead to difficulties in finding another job, as it is often required by new employers as proof of the employee’s previous employment status and departure.

What are the uses of Relieving Letter?

  1. Proof of Employment Termination: The primary purpose of a Relieving Letter is to officially confirm that an employee has left their previous job with the company. It serves as proof that the employment relationship has ended.
  2. Job Search: When seeking new employment, many employers request a Relieving Letter as part of the hiring process. It assures them that you left your previous job on good terms and that there were no issues or objections to your resignation.
  3. Background Checks: Employers or background verification agencies often use Relieving Letters to verify an individual’s work history. It helps them ensure the accuracy of the information provided in a job application.
  4. Visa and Immigration Processes: When applying for visas or immigration to certain countries, authorities may require a Relieving Letter to validate your employment history and status.
  5. Loan or Financial Transactions: Some financial institutions may ask for a Relieving Letter when you apply for loans or other financial products as proof of your employment history and income stability.
  6. Legal Documentation: In legal matters related to employment disputes or contractual obligations, a Relieving Letter can serve as evidence of the terms of separation and can be crucial in resolving disputes.
  7. Transition to Freelancing or Self-Employment: Freelancers and entrepreneurs may use a Relieving Letter to demonstrate their work experience and transition from traditional employment to self-employment.

Sample Relieving Letter

What is an Letter of Experience?

An Experience Letter is typically issued along with the Full & Final settlement to the departing employee. This document serves a more comprehensive purpose. It outlines the employee’s tenure with the company, specifying the joining date and designation held during their employment.

Unlike the Relieving Letter, an Experience Letter delves into the employee’s contributions and achievements during their time with the company. It often acts as a testimonial, providing insights into the employee’s professional conduct, skills, and the value they brought to the organization. This letter can be a valuable asset for the employee as they pursue future career opportunities, as it substantiates their work experience and can help in building credibility.

What to include in an Experience Letter?

  • Date of issuance.
  • Full name and designation of the employee.
  • Duration of the employee’s tenure with the organization.
  • Detailed description of the employee’s roles and responsibilities.
  • Last drawn salary of the employee.
  • Details of the person issuing the letter.

What are the uses of Experience Letter?

  1. Describes the employee’s skills and abilities: Just like a report card, an Experience Letter talks about what skills and abilities you showed while working in a job. It tells how good you are at certain things because of your work experience.
  2. Confirms the employee’s association with the issuing organization: An Experience Letter says, “Yes, this person really worked at our company.” It’s like a stamp that proves you were part of that place.
  3. Specifies the employee’s designation and salary scale: It’s like telling someone what your job was and how much money you made. This helps new employers understand what you did and how much you earned in your previous job.
  4. Acts as proof of the duration of the employee’s service: This is like showing a certificate that says, “I worked here for this many years.” It’s evidence of how long you were part of the company.
  5. Provides a comprehensive overview of the employee’s roles and responsibilities within the organization: An Experience Letter is like a story about your job. It explains what you did every day, the things you were responsible for, and how you contributed to the company’s goals. It’s like a detailed job description.
  6. Serves as a supporting document to the employee’s resume when applying for new job opportunities: Think of it as an extra document you attach to your job application. It helps your future employer understand your work history better. It’s like having proof to show that you really did what you said you did on your resume.

Sample Experience Letter

Summary: Relieving Letter vs Experience Letter

The concise summary of the key differences between a Relieving Letter and an Experience Letter is:

Relieving LetterExperience Letter
DefinitionA Relieving Letter is like a certificate you get from your old job on your last day there. It’s a formal way of saying, “You resigned, and we accepted it without any problems.” It also says, “You don’t have to work for us anymore.”An Experience Letter is a bit like a report card from your old job. It talks about what you did there, how long you worked, and what you were good at. This letter can be given to you while you’re still working at the job or after you leave. It’s handy because it tells other bosses what you’re good at when you’re looking for a new job.
Time of IssuingIn case of resignation by employee, relieving letter is issued on or after their last date of work.Experience Letter can be issued anytime during the employment tenure or after the resignation
Use CaseProof for new employers about the resignation of the employee from the previous organisation without any issues or objections.Proof of the employee’s skills, ability and duration of the service in the past organisation