Relieving Letter is one of the most important parts of FNF settlement of an employee. After they resigned, served the notice period and new job is waiting, the only thing holding them back is a relieving letter.
Sometimes it’s a delay. Sometimes it’s HR being overwhelmed. Sometimes — and this is the uncomfortable truth — it’s being used as leverage. None of these situations reflect well on the company. And all of them were avoidable. A relieving letter takes 10 minutes to issue. What it protects — for both the employee and the company — is worth far more than that.
What a Relieving Letter Actually Does
Sometimes most HR managers think that a relieving letter is just a formality. It is something you issue when someone leaves, file it away, and forget about it. But for the employee this letter have three very specific things. It proves they resigned properly and served their notice — so no new employer can question their exit. It confirms there are no pending disputes or dues — which background verification agencies check for. And it establishes the exact last working date on record — which matters for PF transfers (EPFO), gratuity calculations, and sometimes even visa applications.
From the company’s side, the letter protects you too. It creates a clean documented end to the employment relationship. Without it, you’re leaving the exit open-ended — and that can create complications you don’t want. Now you are thinking that is it legally or mandatory? Technically, there is no specific central law mandates it for all employees. But the Shops and Establishments Act of most Indian states requires some form of service certificate on exit.
Relieving Letter vs Experience Letter
I need to clarify this because I see it confused constantly.
A relieving letter confirms the exit. It says — this person resigned, served their notice, completed formalities, and has been released from their duties as of this date. That’s it. Short, factual, focused on the exit. An experience letter confirms the tenure. It mentions the joining date, the last date, the designation, and usually a line about the employee’s conduct and contribution.
Both are issued when someone leaves. Most companies issue them together. But they serve different purposes — and in background verification, both are checked for different things. The relieving letter unlocks the next joining. The experience letter builds the employment record. Don’t combine them unless you’re using a specific “experience cum relieving” format common in IT firms.
What Goes Into a Proper Relieving Letter
Just keep it short and factual, don’t improvise the language. The letter should confirm the employee’s name and designation, the date they joined, their last working day, that their resignation was accepted, that they served the notice period, that all handover formalities are complete, that dues have been settled or are in process, and a standard closing wish for their future.
That’s it. The relieving letter is not the place for performance comments — that belongs in the experience letter. It’s not the place for conditions or warnings. It’s a clean, professional confirmation of exit.
One thing I always recommend — issue it on or before the last working day.
Free Relieving Letter Templates
Template 1 — Standard Relieving Letter
[Company Letterhead] Date: DD/MM/YYYY
RELIEVING LETTER
To Whomsoever It May Concern
Dear [Employee Name],
This is to confirm that [Employee Name], [Designation], [Department], Employee ID: [ID], has been relieved from their duties at [Company Name] with effect from the close of business on [Last Working Day].
[Employee Name] joined us on [Date of Joining]. Their resignation dated [Resignation Date] was accepted, and they have completed the notice period as per their employment agreement.
All handover formalities have been completed. Full and Final Settlement, including salary, leave encashment, and applicable reimbursements, has been processed.
We thank [Employee Name] for their contribution during their tenure and wish them all the best in their future endeavours.
For [Company Name],
[Authorized Signatory Name] [Designation] [Date] [Company Seal]
Template 2 — Short Format (Startup / Small Business)
[Company Letterhead] Date: DD/MM/YYYY
RELIEVING LETTER
Dear [Employee Name],
This letter confirms that you have been relieved from your position as [Designation] at [Company Name] effective [Last Working Day].
You served the company from [Date of Joining] to [Last Working Day] and completed all handover and exit formalities. Your Full and Final Settlement has been processed.
Thank you for your work with us. We wish you success in your next role.
[Authorized Signatory Name] [Designation], [Company Name]
Template 3 — When Notice Period Was Bought Out
[Company Letterhead] Date: DD/MM/YYYY
RELIEVING LETTER
Dear [Employee Name],
This is to confirm that [Employee Name], [Designation], has been relieved from their duties at [Company Name] effective [Date].
[Employee Name] joined us on [Date of Joining]. As per mutual agreement, the notice period shortfall of [X days] has been settled through payment in lieu of notice. All exit formalities have been completed and dues settled accordingly.
We wish [Employee Name] the very best in their future career.
For [Company Name],
[Authorized Signatory Name] [Designation] [Company Seal]
How Runtime HRMS Handles Relieving Letters
When an employee’s exit is processed in Runtime HRMS, the relieving letter is generated automatically from a pre-set template — with the correct dates, correct designation, and company letterhead already in place. HR reviews it, approves it, and the employee receives it on their self-service portal.
No Word file hunting. No manual date entry. No risk of the joining date being wrong because someone typed it from memory.
For companies processing multiple exits in a month, this saves significant time and ensures every letter is consistent and professionally formatted.