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HR Templates

Relieving Letter Format

A relieving letter is the formal confirmation from an employer that an employee has been released from their duties and from the employment relationship with effect from a specific date. In the Indian job market it is a critical document: most new employers insist on it before onboarding, because it proves the candidate has properly exited the previous company and is not absconding or serving dual employment.

HR issues the relieving letter on or immediately after the employee's last working day, once the resignation has been accepted, the notice period served (or bought out), handover completed and no-dues clearance obtained. It is usually issued together with the experience letter and followed by the full and final settlement.

Relieving Letter — sample format

Copy the template below and replace the [bracketed] fields.

[On Company Letterhead]

Ref. No.: [Reference Number]
Date: [Date]

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]

Subject: Relieving Letter

Dear [Employee Name],

This is with reference to your resignation letter dated [Resignation Date], which was accepted by the management. We wish to inform you that you have been relieved from the services of [Company Name] with effect from the close of business hours on [Last Working Day].

We confirm the following details of your employment with the Company:

  • Designation at the time of relieving: [Last Designation]
  • Department: [Department Name]
  • Date of joining: [Date of Joining]
  • Last working day: [Last Working Day]
  • Notice period: Duly served as per the terms of your appointment [/ shortfall of [X] days adjusted against salary / bought out as mutually agreed]

You have completed the handover of your responsibilities, documents and Company assets to [Handover Recipient Name/Designation] to the satisfaction of the Company, and your no-dues clearance has been received from all concerned departments.

Your full and final settlement, including salary for the notice period, leave encashment and other payables (subject to statutory deductions and recoveries, if any), will be processed and credited to your registered bank account within [F&F Timeline, e.g., 30/45 days] of your last working day, in accordance with Company policy and applicable law. Your relevant statutory documents (Form 16, PF transfer/withdrawal assistance, gratuity payment where eligible) will follow as per the applicable timelines.

We remind you that your obligations relating to confidentiality, intellectual property and non-solicitation, as set out in your appointment letter and the undertakings signed by you, survive the termination of your employment and continue to bind you.

We thank you for your contribution to [Company Name] during your tenure and wish you the very best in your future endeavours.

Yours sincerely,
For [Company Name]

[Authorised Signatory Name]
[Designation — HR Manager / Head of HR]
[Company Seal]

Acknowledgement: I acknowledge receipt of this relieving letter.

Signature: ______________ Name: [Employee Name] Date: ______________

What to include

  • Effective relieving date — the single fact new employers verify; it must match the last working day in payroll and PF records.
  • Resignation reference and acceptance — anchors the exit as voluntary and documents the chain from resignation to release.
  • Notice period status — states whether notice was fully served, adjusted or bought out, pre-empting recovery disputes in the F&F.
  • Handover and no-dues confirmation — records that assets and responsibilities were returned, protecting both sides.
  • F&F settlement timeline — sets the expectation for when final pay, leave encashment and Form 16 will arrive.
  • Survival of confidentiality/IP obligations — reminds the employee that these duties continue after exit and are enforceable.

Legal notes (India)

  • § There is no single central statute compelling a relieving letter by that name, but service-certificate obligations under certified/model standing orders and state Shops and Establishments rules cover much of the same ground; withholding it without lawful cause after the employee has served notice invites legal and reputational risk.
  • § Final dues have statutory timelines: gratuity (for employees with five years' continuous service) must be paid within 30 days under the Payment of Gratuity Act, 1972, and the Code on Wages, 2019 framework requires final wages within two working days of separation as operationalised by state rules — the relieving letter's F&F promise should not exceed what law allows.
  • § An employer cannot refuse to relieve an employee who has served the contractual notice; specific performance of an employment contract is not available under the Specific Relief Act, 1963, so the practical remedy for an employer facing a notice-period shortfall is recovery of salary in lieu, not blocking the exit.
FAQ

Frequently asked questions

Can a company refuse to issue a relieving letter?
Only for legitimate incomplete-exit reasons — notice period not served or bought out, assets not returned, or pending disciplinary proceedings. Once the employee has met their contractual obligations, withholding the letter has no legal basis and can be challenged; courts do not allow employers to force continued service.
What if the employee did not serve the full notice period?
The standard practice is to recover salary in lieu of the shortfall in the full and final settlement, or accept a buyout if policy permits, and then issue the relieving letter noting the adjustment. Refusing the letter altogether while also recovering notice pay is double-dipping and looks bad in disputes.
When should the full and final settlement be paid after relieving?
Most Indian companies settle within 30–45 days, but statutory components move faster: gratuity is due within 30 days, and under the Code on Wages framework final wages are payable within two working days of separation where state rules so provide. Kredily automates exit workflows so the relieving letter, no-dues and F&F calculation are generated from one flow.

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