Timing of Relieving Letters: Should They Be Issued on Last Day or After Final Settlement?

Dear seniors, we issue a relieving letter cum experience certificate on the last working day to an employee who resigns from services (provided they have the exit clearance form from various departments). However, I have noticed that many organizations issue the same at the time of full and final settlement. Which option is better for the organization? Please answer.

Thanks!

N

It is a good practice to issue the same after F & F as, in case of recoveries, etc., you can ensure that the employee makes such payments. However, it's a company call.

Dear Viraj, thank you for your reply. As mentioned earlier, we only issue the clearance form once we receive the necessary clearance. It is rare for any recovery issues to arise during the full and final settlement process. In case there are any dues related to the notice period, they are also taken into account before issuing the certificate.

I hope you agree with this. What are your thoughts?

Thanks!

You can issue the relieving letter, and in the F&F payment details column, you can mention that payment will be made after submitting clearance. The relieving letter you are issuing will be useful for the resignee to join a new organization.

Regards

Yes, Bhaskar, it is for their benefit only, as F&F does take a long time, and a relieving letter is required to join the next organization because not many organizations accept the acceptance of resignation.

Thanks!

Hi Neeshu, as per Bhasker sir, the acceptance of a resignation letter will be useful for any person.

Regards,
Ashish
Delhi

Dear Neesu, In my company, we follow this procedure: When an employee resigns, after the acceptance of his/her resignation letter, a full and final settlement form is issued to that employee. This form is issued one week before his relieving date. Once the employee completes the F & F settlement form, it comes to the HR department for leave settlement and leave encashment. After that, it goes to the Accounts and Finance department for the clearance of dues and the cheque procedure.

The relieving letter is issued to the employee on his/her last working day. The experience letter is given after the employee leaves and is couriered to his/her residential address.

I hope this procedure will clear your doubts.

In my company, the procedure is as follows:

Resignation with Notice

1. Submission of Resignation by the employee to HOD, CC to Manager HR.
2. On the same day, the HR department (not the employee) routes the Clearance Form through various departments.
3. Any recovery/loan payment is agreed upon between the employee and the related department.
4. After that (usually after one week), full and final payment is prepared by HR.
5. After completing the notice period, the Manager HR conducts the Exit Interview.
6. F&F payment, Experience Letter, and Relieving Letter are prepared and handed over to the employee on his/her last day.

Resignation with Immediate Effect

1. Point 1 above.
2. The employee is approached by HR personnel for his/her clearance, completed on the same day.
3. Exit Interview.
4. F&F Payment, Experience Letter, Relieving Letter are processed and issued after 1 week.

Best Regards,
Waseem

Viraj is right. It is best to issue a relieving letter/service certificate after the settlement of all dues in Full & Final. This practice ensures that no loose ends are left dangling for another day!

Regards,
Vasant Nair

The F&F process varies from organization to organization. The correct practice is to complete the 'No dues' process from all departments one day before the last working day so that the Accounts/HR can prepare the F&F statement well in advance. Status about dues (either side) will be in front of HR, and once the settlement status is clear, HR can issue a Relieving letter/Experience letter on the last working day with a farewell memento.

All the best,
Gopal

Our company procedure is as follows:

1. The employee gives resignation through the Head of Department (HOD).
2. The HR Department prepares a No Due Certificate Format and Declaration (Admin, Accounts, HOD, and Final HR Department) after approval from Management. The HR Department then prepares the Full and Final (F & F) settlement.
3. On the last day, the employee will receive the Full and Final settlement and a relieving order.

I hope this is correct.

Thanks,
Chithra

As a lawyer, I would like to say that the relieving letter or the service certificate should be issued only at the time of full and final settlement to the employee. Otherwise, the employee can receive the service certificate, join some other company, and then not accept the full and final settlement and demand more.
Theagarajan

Full and Final Settlement Process During Notice Period

After an employee resigns and while serving a notice period (normally 1 to 3 months), there is ample time to make a full and final statement. Why wait until one week is left for service? Start immediately for F&F settlement. Ask everyone and the employee himself if he owes anything to the company (library books, mobile, laptop, vehicle, loan, advance, keys, etc.). If an employee fails to return the company's belongings, the value of the same can be deducted from his F&F payment.

As per the law, all dues of the employee are to be given to him on his last working day together with the Service (not experience) Certificate and relieving letter.