Hi Katyana,
Hoping you are doing well. I have a query regarding this. I have recently joined a health service company. Here, many people have not submitted their relieving letter. When I asked the person who was looking after all the personnel files, she said we have not taken that purposefully because the salary of many staff members is not sufficient, so they work outside to earn extra, and therefore, a relieving letter is not required. Is this right?
Suhrita
The purpose of a relieving letter is to prove that you have officially resigned from your last company and have cleared all dues. If you do not produce your relieving letter, it means that you are still working with the company, your dues are not cleared, or you have not served your notice period.
Another reason for asking for a relieving letter is to confirm that you are not engaged in dual employment. For example, if you receive an offer letter from a company and later find that the culture or the roles and responsibilities are not to your liking, you can always return to your previous company if you have not submitted all documents (resignation letter, relieving letter).
Considering all these facts, every company prefers to have a relieving letter before an employee joins.