A relieving letter confirms one thing: that the person has been relieved and the employment has ended. It is not a testimonial and it is not a bargaining chip. Withholding it to enforce a notice period or a recovery causes real harm to the person’s next employment, invites a claim, and does not improve the employer’s position on the money.
Relieving Letter
[COMPANY NAME]
A relieving letter confirms one thing: that the person has been relieved and the employment has ended. It is not a testimonial and it is not a bargaining chip. Withholding it to enforce a notice period or a recovery causes real harm to the person’s next employment, invites a claim, and does not improve the employer’s position on the money.
[COMPANY NAME] CIN: [CIN] [REGISTERED OFFICE]
[EMPLOYEE NAME]
[ADDRESS]
Dear [FIRST NAME],
Relieving letter
This is to confirm that you were employed with [COMPANY NAME] and have been relieved from the services of the Company with effect from the close of business on [LAST WORKING DAY], on the acceptance of your resignation dated [DATE].
| Item | Detail |
|---|---|
| Name | [EMPLOYEE NAME] |
| Employee identification number | [ID] |
| Designation at the time of leaving | [DESIGNATION] |
| Department or function | [DEPARTMENT] |
| Date of joining | [DATE] |
| Last working day | [DATE] |
| Total period of service | [YEARS] years [MONTHS] months |
| Place of work | [LOCATION] |
We confirm that:
1.you have handed over charge of your responsibilities and have completed the Company’s exit formalities;
2.you have no outstanding obligations to the Company in respect of Company property, records or dues, [save as separately notified to you]; and
3.your full and final settlement has been paid to you on [DATE], or has been processed and will be credited to your account within two working days of your last working day — state which.
Your obligations of confidentiality in respect of information belonging to the Company, and in respect of the Company’s intellectual property, continue after the end of your employment.
We thank you for your contribution during your time with us and wish you well in your future endeavours.
Yours sincerely,
For [COMPANY NAME]
_______________________________
[NAME]
[DESIGNATION]
[EMAIL] [PHONE]
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These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
A relieving letter is what the next employer asks for before allowing a person to join. Delay costs the person a start date and sometimes the job. Prepare it during the notice period and hand it over on the last working day, alongside the settlement.
Withholding a relieving letter to enforce a notice period, to recover an advance, or to discourage a move to a competitor is a common practice and a poor one. It causes disproportionate harm, is frequently challenged, and does nothing to improve recovery of the money, which has to be pursued separately in any event. If there is a genuine outstanding recovery, note it in Clause 2 and pursue it; do not withhold the letter.
A relieving letter states that the person was employed, in what role, for what period, and that they have been relieved. It is not the place for an assessment of performance or conduct. Where the person asks for a testimonial, issue a separate experience certificate. Where the separation was for misconduct, the relieving letter should still record only the facts of employment and relief — adverse comment invites a defamation claim and is rarely necessary.
The date of joining, the last working day and the period of service in this letter must match the appointment letter, the settlement statement, the provident fund exit date and the employee register. Inconsistent dates across these documents are noticed by the next employer’s verification agency and generate queries that are awkward to answer.
Where the employment was terminated by the Company rather than by resignation, amend the opening paragraph to say so neutrally — that the employment ended with effect from the stated date — rather than reciting acceptance of a resignation that did not happen. A letter that misstates the reason is unhelpful to both sides if the separation is later disputed.
Wages due on termination must be paid within two working days of the employment ending. Clause 3 should record what actually happened. Where the settlement has genuinely been paid, say so with the date; do not use a form of words implying payment that has not been made.
The reminder that confidentiality and intellectual property obligations continue is worth keeping. It is a reminder, not a new obligation, and it should be consistent with what the appointment letter actually says.
Next employers and background verification agencies will contact the Company to verify this letter. Nominate a mailbox for verification, answer promptly and factually, and confirm only what appears in this letter — dates, designation and the fact of relief. Volunteering an opinion on the person in a verification call is where employers create liability for themselves.
Keep the signed copy with the employee’s file for the statutory retention period, together with the settlement statement, the clearance record and the acknowledgement. Verification requests arrive years later.
Where the employment ended on death, a relieving letter is not the appropriate document. Issue a service certificate to the family instead, and deal with settlement, gratuity and nomination promptly and without requiring them to chase.
Reflects Indian law and practice current as of {{DATE OF USE}}. Settlement timelines and record-retention periods change — confirm the current position before adopting this template across an organisation.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, company secretary, or chartered accountant as relevant) before you rely on it.