When your employee resigns from the job in your organization, you need a formal letter to accept his or her resignation. This formal letter will act as an announcement to your other employees that this departing person is no longer an employee in your organization and has no obligation towards the fulfillment of duties assigned to him. In this blog, we will help you know about the intricacies of a relieving letter format and how you can create it without any obstacles.

What is a Relieving Letter?

It is an official and formal document that is issued to an employee who is leaving the organization and has completed the notice period by an employer or the HR department of that organization. This is an acceptance of the employee’s resignation and he is discharged from all the roles and responsibilities designated to him. 

This letter should be issued when you are satisfied that the employee has completed all the requisite formalities and you have no issues from this termination of employment. Hence, it is a formal way to communicate that the departing employee does not have to pay anything to your organization while leaving.

Why is it important to issue a relieving letter?

A relieving letter serves as evidence for the employee that he no longer works with your company and testament to the fact that he does not possess any of the company’s assets. Before issuing this letter, the HR department can also ask the employee to receive a clearance certificate from his or her department head. Based on this clearance certificate, the accounting department of your company can issue final dues and employee payments. 

You can also demand this relieving letter from a new employee as it acts as a written statement of the fact that the employee left previous employment without problems. Hence, the relieving letter is the proof that an employee has left the previous organization, has cleared all the dues from the previous employment, and he does not hold any internal data and property of the previous company.

What is the difference between an Experience letter and a Release letter format?

Most organizations provide their resigning employees with both a relieving letter and an experience letter but they are different from each other.

• An experience letter is a formal document that states the experience earned by an employee in your organization. Whereas, a relieving letter format states the termination of the employment.
• An experience letter provides a statement of your employee’s conduct within the organization through the entire tenure. Whereas, a relieving letter format only acknowledges and accepts the employee’s resignation from the organization. 
• In an experience letter, the duties and responsibilities assigned to the employee are simply stated. Whereas, a relieving letter format gives the full description of the responsibilities that need to be handed over and to whom.

What is the difference between a Resignation letter and a Relieving letter format?

A resignation letter is written by the employees communicating their intention to leave the organization and formally puts the need to recruit the supplant who will take the responsibilities of a departing employee. Whereas, a release letter format is issued by the organization to its departing employee that he has been discharged from all the obligations and his resignation has been acknowledged.

How do you draft a relieving letter format?

To craft a relieving letter, you can simply initiate the process by stating that as an employer you acknowledge and accept the resignation of the employee and appreciate them for their work and contributions to the organization. Also, mention the final date when they can collect all the remaining documents they need and further wish them success in their future endeavors.

What are the elements of the relieving letter format?

Knowing exactly what a relieving letter format should constitute is not an easy task but necessary for an employer. One should not only add all the requisite information about the departing candidate but also include them systematically and concisely. So, if you are curious to know how a relieving letter format appears then, here is a step-by-step guide to what a relieving letter format should look like:

Date of issuance of the Letter

The first section of the release letter format should consist of the date of the issuance of the letter by an employer to an employee to avoid any legal dispute.

Employee’s Details

After mentioning the issuance date, provide the personal details of the departing employee which include: their full name, designation in which they were appointed, department or name of the organization, and their employee ID.

Reference or Subject

This section of the relieving letter format should briefly describe what the letter is all about in just one line or two to three words. If you have nothing in your mind related to the subject of the relieving letter format, you can just write ‘Relieving Letter’.

Resignation Details of Employees

After the salutation, the second paragraph of the relieving letter format should inform the employee that his resignation has been accepted and broadly includes the designation and date from which such employee will be relieved from all his duties and responsibilities. 

A statement of appreciation 

The second paragraph of the relieving letter format gives assurance to the resigning employee that he would receive the full and final settlement of his accrued salary or payment within a stipulated period. Also, appreciate the contributions made by an employee toward the fulfillment of organizational goals and wish him luck in his future endeavors.

Signature 

After finishing all the formalities and specifics, conclude your relieving letter format with ‘sincerely,’ the name of the employer (your name), the employer’s signature (your signature), your designation, and the date of issue.

Is it compulsory to issue a relieving letter?

Though issuing a relieving letter to the resigning employee is not compulsory, it is advisable to issue it because the employee will have to face the repercussions as his job application will be dropped, no matter how potential a candidate he is or not. Also, the future employer wants to know at the initial level whether or not the new employee has been relieved from his last assignment and that there are no pending engagements with him. The relieving letter also acts as a vigilant eye and a reliable method for background screening of the employee as it weeds out the candidates who have fudged their resumes with false experiences.

Things to keep in mind while drafting the relieving letter format

• Print this relieving letter format on the letterhead of the organization because it will be the proper evidence of who is the author of the letter. The company’s letterhead usually has the full postal address as well as other details, like registration number, address, etc.
• Always start your letter with the phrase “To Whomsoever It May Concern” unless you have been specifically asked to mention the employee’s name.
• Before issuing the relieving letter, confirm that the employee’s resignation letter has been received and then mention its acceptance within the first couple of lines of this letter.
• Proofread your letter to ensure that the details of an employee and the organization are correct.
• It should be signed by the authorized representative i.e. HR manager of the company.
• Keep your letter professional and brief to the point and give out the necessary information which is required and nothing more.

Conclusion

Issuing the relieving letter is an important task for an organization and can be avoided only when said employee has a negative track record, a history of misconduct, or unethical practices. Otherwise, a departing employee can ask for a relieving letter by referencing his resignation letter. It signifies that your employee has left the job with the utmost dignity and has carried out all the final formalities and duties towards the company. It is usually issued on the last working day of an employee, however, sometimes companies issue this letter after one month along with a pay slip for the full and final settlement. If you want to know more about relieving letter format, contact eSahayak.