Why is a Relieving Letter Important?

When you shift jobs, you will need to know what a relieving letter is. It is not just the experience letter or certificate. Know here what a relieving letter is and why is a relieving letter important. A relieving letter formally informs the employee that the resignation has been accepted. It also indicates their last day of employment. It is usually issued to the employees when they leave the organization. They must submit an essential document to the potential company while switching jobs. It is documented proof that candidates can show their prospective company to ensure they have no other obligation with their earlier employer. The relieving letter is important because it also proves that the employee has left the previous company without any issues.

However, the problem is that most employees do not even consider taking their experience or relieving letter when leaving the company. So, this article is written to inform candidates/ jobseekers on the importance of relieving letter from the previous company while switching jobs. Also, know all about how to ask for a relieving letter.

 

Content list

• Importance of Relieving letter

• Why is Relieving letter important?

• How to ask for a Relieving Letter from Your Company?

• Should You Get a Relieving Letter from Your Company?

• FAQs

 

Facts and Figures

The newly formed Information Technology Employees Senate (NITES) has filed a complaint with the Centre regarding contract guidelines prohibiting former employees from working with competitors TCS, Wipro, Cognizant, IBM, and Accenture.

 

Importance of Relieving letter

A relieving letter from employee is a necessary document for a person to show in their following organization. Importance of relieving letter is that the relieving letter from the previous employer indicates that you have paid off all the arrears, and there is no work pending. This helps the organizations ensure that the employee who will resign is completely relieved of his duties and not still working for any other company.

Read Up: What is the Difference Between Relieving Letter and Experience Letter

This document must be printed on the company letterhead where the employee has worked. It must be signed by the company's authorised representative, i.e. the HR manager and the Team Lead/ Manager. In most states, employees should be given a relieving letter and an experience certificate as soon as they leave the organisation. The tone of the letter should be formal and polite. It must refer to the worker's resignation letter and is the enterprise's practice.

 

Why is a Relieving letter from Employee important?

A relieving letter from employee is an appropriate way to indicate to an employee that their resignation has been established and that they have been transferred using the employment contract from which they have been discharged or have resigned. This letter will have to be submitted to potential employers.

• A relieving letter is a business file or communication that assures a brand new organization that you are no longer affiliated with the previous organization.
• Your relieving letter may also include a brief description of your bidding capacity or management capacity. Whether such data is included depends entirely on the person issuing the relieving letter. Once incorporated, your relieving letter will no longer be a great way to say that you have given up your previous venture but a little more about yourself. So, it is mandatory for your previous employer to issue your relieving letter. Make sure you get the relieving letter on transfer to a new job opportunity.
• Many top agencies will no longer continue with the candidate's job; if the candidate no longer has a relieving letter, the decision is not made by interview. Research findings also show that 90% of agencies stress a comfortable letter in the recruitment process. So why not ask about your previous job, which could hurt the recruitment in your next firm. A relieving letter is a pillar to walk into your next job without any problems.
• This puts you at a high level of responsibility for your firm and awareness.
• Your relieving letter from the previous organization indicates that you have paid all the dues, and there are no paintings pending.
• The Relieving Letter enables your new organization to accept you as the absolute truth and start painting. Some agencies leave detailed data to their employees.
• The importance of relieving letter is that it enables agencies to ensure that the employee about to surrender is completely relieved of his responsibilities and has not worn any of the employer's facts or internal assets.
• The company needs to have written documents acknowledging the employee's resignation if any party is required to provide documentary references later. It gives the company a formal termination of employee service and provides proof that the company has accepted the employee's notice.
• A comfortable letter presentation of the professionalism displayed by the employer and the candidate. The structure of the relieving letter and its difficulty is critical for even a new organization to capture the expert legacy of its recent appointment.
• The relieving letter is essential for the smooth running of the policy. When entering their employer, top agencies in numerous fields select applicants with relieving letters with different files.
• A terminated employee receives a relieving letter, but it specifically states the reason for departure as termination.

 

Examples of Relieving letter

  1.                                                                                                          To whom it may concern                                                                                                           Date - …………….   To                                                     Sub. Relieving letter   Dear Mr. …………   It refers to your letter of resignation dated 30 April 2022, in which you requested to be discharged from the company's service on 30 May 2022.   We would also like to inform you that this has accepted your resignation, and you are being removed from the company's services after one month's notice period from the office hours of 30 May 2022.   We also certify that the full and final settlement organization has cleared your account.   Your contribution to the organization and its success will always be appreciated.   We at the company wish you all the best in your future endeavors.   For your sincerely,   Sign of HR Officer or Director   2.                                                                                                           Date -   Mr.                                                     Sub - Relieving letter   Dear,   This has reference to your resignation letter dated 2012 from the company's services. In this respect, we would like to inform you that your resignation from the company's services has been accepted and you will be relieved w.e.f. 2012 on the closing of working hours.   We wish you all the success in your future endeavors.   Yours truly,   Sign of HR or Director  

How to Know the Reason Why a Company Denies a Relieving Letter?

However, there are times when an employer refuses to accept an employee's resignation. This could be due to the employee failing to complete the notice period or some other issue for which the employer can terminate the employee. It is not always possible for your employer or company to issue your relieving letter without you having served your notice period. In some cases, an employer may need to buy out the notice period and reduce it to fewer days as per company policy and norms.

See this example of a multi-national company denying to give the relieving letter until the employee has signed a "no objection letter" declaring that they would not take up a job in the same industry for a stipulated period. According to a Delhi High Court advocate, "In these circumstances, an aggrieved employee can file a civil suit for a mandatory injunction against the employer directing the employer to hand over the relieving letter to the employee and for salary recovery and damages." However, another Senior Official of an HR Law Practice at a Law Firm states, "Different labour laws contain overlapping definitions for terms such as 'employee/workman', 'wages', ‘employer’, etc. There are situations where a particular labour law may apply to one set of employees in an establishment, whereas the rest of the employees may be excluded. This means that an individual's applicability of particular labour law will first have to be determined to comment on the benefits/protections available to such individuals".

What should be the further course of action if the current employer is delaying the relieving letter? Here are some questions to consider:

• Why is this so? Sort out the problem. Get to the bottom of the issue – the underlying cause.
• Request a LinkedIn recommendation from them. It has advantages for your future employment prospects.
• Is it possible for your employer to provide something comparable, such as experience or another certificate?
• Inquire if they are willing to confirm your work presence and make a recommendation.

 

Related article: What is an Experience Letter?

 

Should You Get a Relieving letter from Your Company?

The relieving letter is critical as it is issued to the employees serving the notice period. Coincidentally, if an employee runs away from the notice period and ignores the importance of the relieving letter, they have to face severe complications in finding other jobs. Wherever you go, each company asks you for documentary evidence of the time you spent in your previous company. No company is willing to take you seriously without that proof. You must have a relieving letter to use joining relieving letters and prove that you were working for that company at that time.

Check whether a relieving letter is mentioned in the resignation letter email if the employer does not provide one after the notice period. Additionally, ensure that you have a knowledge transfer document ready and prepared. It must be given to someone in charge, and you must keep a copy. While you're at it, make sure you're not violating any privileged information or clauses. Please keep in mind that if your new employer wants you to start sooner, you must first check with your previous or current employer. There will be a clause regarding the possibility of buying out the notice. The provision of compensation to the Notice is an option. If this is not possible, discuss the situation with your new employer and politely request more time. The other option is to join the new company after you have served your notice period. The problem is that your current employer still employs you. You must address the issue with your employers and request a copy of your previous employer's resignation acceptance letter to send to your current one.

  Has the company acknowledged your resignation letter?

Have you completed the required notice period? If the answer to the preceding questions is 'Yes,' the relieving letter should not be a problem. You are free to join the new company without fear of legal repercussions. If you file a lawsuit, your previous employer will face legal consequences for failing to issue a relieving letter.

According to the Limitation Act, the application must be made to the authority within three years of the incident. Please submit the necessary documents and current conditions. It is also good to distribute the employment agreement and appointment letter. If the matter is not being resolved amicably, you must notify an advocate. Please submit any relevant documents.

 

Conclusion

After going through this article, we can conclude that the importance of relieving letter is so vital that it can affect our future job.

When you join a new employer, the release letter of the previous employer is usually asked. They may ask the former employer for a release letter to verify that you are free of any obligations. If you are asked, you can say that you do not have a 12 months experience certificate. It doesn't matter. But always remember to get publications and experience certificates in the future. Such records are more required in government companies. You still have a long career balance; even in the sixties, who knows what kind of paper you want in the air. So from now as you move forward with your new job offer and make arrangements for it, be sure to collect your relieving letter before joining the next company.

 

FAQs

 

1. What is the difference between Relieving letter and an experience letter?

A relieving letter is a document given to an employee after his resignation. In the relieving letter, the organisation's HR department confirms the letter of resignation to the employee and records the last date of the job. Whereas the experience letter tells you what kind of experience you have and the period from the beginning to end. It helps as evidence and allows the employee further in their career.

 
2. Can an employee receive a relieving letter without completing the notice period?

It is impossible to issue your relieving letter to the employer or company without completing the notice period. In some cases, an employer needs to reduce the notice period to purchase and a few days to help as per the company policy and rules.

 
3. What if you don't have a relieving letter?

Get a hard copy of the resignation letter from any team member of the HR team. Receipt of resignation letter can be submitted as a relief letter.