Navigating Employee Exits: Are Relieving Letters and Service Certificates Legally Required?

Hello Learned Colleagues, I have two queries related to employee exit:

1) Is it mandatory to provide a Relieving Letter and Service Certificate to exiting employees as per law? If so, under which act is this aspect covered?

2) Can we combine these two letters and provide one letter with the subject - "Relieving Letter Cum Service Certificate"? Will this have any impact?

Kindly share your thoughts and help.

Regards, Dushyanth.A.L

Dear Dushyanth Gowda,

The replies to your queries are as below:

Is it mandatory to provide a Relieving Letter and Service Certificate to exiting employees as per law?

Reply: No, it is not mandatory to issue a service certificate under the provisions of any act. However, it is important to issue this certificate as the employees who served in the company can pursue their further career. If you do not issue the certificate, then it could nullify their tenure in your company. This will be a lose-lose situation as the employer does not gain anything by withholding the certificate.

Can we club these two letters and give one letter with the subject - "Relieving Letter Cum Service Certificate"? Will this have any impact?

Reply: Yes, you can do so. In fact, if you add one more line on "no dues pending" and make it a "No Due Certificate."

Thanks,

Dinesh Divekar