Confused About Issuing a Relieving Letter? Seeking Advice on Potential Legal Implications

Dear All HR Gurus,

Two days ago, one of our employees submitted his resignation. I intended to issue him the relieving letter to assist him, but my immediate boss prevented me from issuing it, stating that it may have legal implications. Kindly clarify the potential impact for me as I have recently joined the company.

Valuable suggestions are appreciated.

Ashfaque

Dear [Recipient's Name],

Issuing a relieving letter is a must as per the provisions of the standing order. Please refer to your standing orders where it clearly mentions to issue an experience letter/relieving letter. There are no legal implications.

Thank you,
J.S. Malik

Hi,

Once the relieving letter is issued, it means the employee has completed all exit formalities and the company does not have any objection to relieve him/her. So, if the exit formalities are not completed, the letter should be issued after completing the same to be on the safer side. This is because the particular employee can get a job on the basis of the relieving letter. However, the employee may have some work pending for handover or may owe money to the previous company, etc. In such a situation, the company legally can do very little against the employee.

Dear Friend Ashfaque,

As per service rules or standing orders of any organization, the resigned employee is entitled to a relieving letter. If you accept the resignation of any of your employees after following the due procedure, then you have to obtain a no-dues certificate from other departments such as finance, time office, HR, and the concerned department where the employee works before settling his final accounts. Once you have obtained the said certificate and confirmed that there are no dues from the employee, you have to prepare his final bill. Additionally, the employee is entitled to receive a service certificate and a relieving certificate.

If your immediate boss is telling you that there may be a legal problem in issuing the relieving letter, ask him on what grounds. If his explanation is unsatisfactory to you, then escalate the matter to your MD and explain the consequences of not issuing the relieving letter to the resigned employee.

In some organizations, neither appointment letters nor service or relieving letters are issued to their employees. In such cases, to avoid legal complications, employers are reluctant to issue any relieving certificates to their former employees due to the fear of facing legal claims from them. If your organization is also following this practice, then what your immediate boss is saying is correct. No officer of the organization is expected to disobey the instructions of the MD.

In such a scenario, please follow the instructions of your immediate boss.

NVRao
Hyderabad

Hi Ashfaque,

Please read the appointment terms before moving further. If exit formalities are completed as per the appointment terms, there are no legal implications in terms of issuing a relieving letter.

I suggest talking to your immediate boss and convincing him. If he does not agree, follow what he says.

With regards,
Taru

Thank you, HR Gurus, for your valuable suggestions. It is really a great help to me. My question is, where can I get the Standing Order Act? Also, if I hire an employee without issuing an appointment letter due to paying them less, would this be unethical or illegal? Please guide me.

With Regards,
Ashfaque