HR-ToolKits

Experience Letter and Relieving Letter are two crucial documents that an employee typically receives upon leaving a company. Both letters serve different purposes, although they may contain similar information. Here's an overview of each and their respective templates:


1. Experience Letter

An Experience Letter is issued by the employer to confirm the employment history of the employee. It serves as a formal acknowledgment of the employee's tenure, role, and performance within the company. This letter is often used by the employee when seeking future employment, as it reflects the employee’s experience, skills, and contributions.


Components of an Experience Letter:

  • Employee Details: Name, employee ID, designation, department, and dates of employment.
  • Job Responsibilities: Brief overview of the employee's role and main duties.
  • Performance: A note on the employee's work performance, skills, and accomplishments (if applicable).
  • Duration: The total period of employment.
  • Reason for Leaving: Sometimes included, especially if the employee is leaving on good terms.
  • Closing Statement: A positive note, wishing the employee well for future endeavors.

2. Relieving Letter

A Relieving Letter is issued when an employee leaves the company. It confirms that the employee has been relieved of their duties and that their employment with the company has officially ended. It is typically issued after the employee has completed the exit formalities, including handing over their responsibilities, returning company property, and settling financial dues.


Components of a Relieving Letter:

  • Employee Details: Name, employee ID, designation, and department.
  • Confirmation of Employment End: Statement confirming the employee’s last working day.
  • Notice Period Compliance: Confirmation that the employee has either served or been exempted from their notice period.
  • No Dues Clearance: Mention that the employee has cleared all financial dues and returned all company property.
  • Well Wishes: A positive statement wishing the employee success in future endeavors.

Key Differences Between Experience Letter and Relieving Letter:

Aspect

Experience Letter

Relieving Letter

Purpose

To certify the employee's experience and performance.

To confirm the end of employment and relieve the employee of all duties.

Content

Focuses on role, responsibilities, performance, and skills.

Focuses on the date of separation, no dues clearance, and release from responsibilities.

When Issued

Issued when the employee requests it, generally after leaving.

Issued after the employee has completed all exit formalities.

Typically Includes

Job responsibilities, performance, and contributions.

Confirmation of last working day, clearance of dues, and return of assets.


Example: Combined Experience and Relieving Letter

Some companies combine both documents into one letter, especially if the employee has completed all formalities and is leaving on good terms. Here’s a combined version:


Important Considerations:

  • Tone and Content: Both letters should maintain a formal, positive, and professional tone. Even in cases of termination, it is important to avoid negative comments.
  • Legal Requirements: Ensure that both letters comply with any local labor laws or contractual obligations, especially when it comes to the termination process or the reasons for leaving.

Timing: The Relieving Letter should only be issued once all formalities have been completed (such as the return of company property and financial settlements).