A lot of us may think that compensation or issues with salary and benefits entitlement is usually what makes an employee quit his or her job. However, this is…continue reading
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What Is a Relieving Letter?
A relieving letter is a letter written by the human resources department in response to a resignation letter filed by an employee. It is a way for the company to acknowledge the request of the employee to resign from the company and current position. By acquiring the formal letter, it means the employee is relieved from the given responsibilities and duties. It is necessary to take hold of the letter as future employers seek it for employment purposes. The relieving letter provides valuable information to the next employer that the employee had left without any issues before the resignation.
According to the United States Bureau of Labor and Statistics, in February of 2021, an average of 3,357 Americans quit jobs in the US. The average ratio is at 2.3%. The number of resignations filed grew compared to the previous months. As a result, more Americans are leaving their jobs despite the pandemic.
The Components of a Relieving Letter
It is essential to know what a relieving letter should contain. As an employee, you should know if the content of the letter is sufficient to satisfy resignation. Here is the information found in a relieving letter completed by the human resources department of the company.
How to Write a Relieving Letter
After identifying the essential components of a relieving letter, you must learn how to create one. It’s critical to respond effectively to an employee’s resignation letter. A relieving letter accepts an employee’s resignation under the pretense that all conditions are satisfied between the employee and employer. Here are the steps in writing a relieving letter to employees.
Step 1: Preliminary Acknowledgement
Once an employee states the intention to resign, it is the employer’s responsibility to accept. However, require the employee of a written formal resignation, in the case of a verbal agreement between parties. The resignation letter will serve as a legal document between the involved parties.
Step 2: Creating a Formal Response
In writing the relieving letter, it uses a formal business format. The document must include information about the company and the employee. The company information must state the company information, contact numbers, and address, and the employee data must show similarity with the company information. The letter must also indicate the issuance date of the relieving letter.
Step 3: Stating the Acceptance of Resignation
The first paragraph of the letter must contain notification that the resignation letter is received and accepted. The most crucial part of the first paragraph is stating the employee’s official last day of employment. It documents until the time the employee must report for work.
Step 4: Write Professionally but with Compassion
In the second paragraph of the letter, the writer must express an understanding of the situation. The response must carry a professional tone, at the same time showing a hint of compassion with the employee parting ways with the company. It is imperative to state that the circumstances, although unpleasant, are acceptable. In such cases, contemplate on offering to provide a reference letter for the employee.
Step 5: Provide a Copy for Record Keeping
As protocol, provide a copy of the relieving letter for the company. There must be a copy held by both the employee and employer for record-keeping purposes. It serves as a protection for the company as well in the case of unforeseen circumstances. It is also noteworthy that the letter is printed on the company letterhead as it is an official document.
Why do employees file for resignation?
According to an article published by the NBC News website, about 79 percent of employees resigned from their posts claiming, that lack of appreciation was the main reason for leaving. It comes as a surprise that the main reason isn’t about compensation but the lack of appreciation from management. Here is a list of some reasons why employees decide to leave their companies.
- The feeling of being unappreciated and undervalued – Most employees find motivation in working when their contributions at work are appreciated. It can be as simple as verbal recognition or positive feedback.
- The lack of communication about proper compensation – One of the key factors to reducing turnover is fair compensation. It is proven time and time again transparency about salaries is just as essential. If companies understand the value of communicating salaries, then employees will stay with their respective companies.
- Insufficient flexibility, time off, and work-life balance – In the present time, people are working in remote conditions, and it greatly influences their life at home. Most employees are seeking out their employers in giving them enough flexibility in terms of work schedules.
- Restructuring the company without notice – In company restructuring, it is best to assure and coach employees heavily affected by it. The employer must give as much detail as they can to employees to have a clear understanding.
- Lack of modern equipment – It is critical to organize the business by providing the proper tools and equipment to all employees. It is also significant to guarantee there is sufficient training provided on the use of new equipment.
- Unrealistic goals and objectives – It is significant to set achievable smart goals and objectives to boost employees’ performance and motivation. In the long run, when employees are motivated, the company reaches its goals as well. Giving incentives and celebrating achievements will help in employee retention.
- No clear path for career development – Employers must provide clear and relevant information on career opportunities. Without a clear direction, employees may feel uncertain about moving forward and opt for a different company offering a positive development.
- Lack of managerial support – A great contributor to turnover is poor management. The management needs to hear out the needs of all employees and must address the problems as required.
- Lack of challenging roles – If employees feel the lack of challenging tasks, then employees will seek out new opportunities somewhere else. Employers must introduce different tasks and develop goals to maintain worker’s motivation and creativity.
What happens if an employee quits the company without notice?
As an employer, you cannot force employees to appear and work every single day. When an employee quits without notice, it posts confusion on the part of the employer. As stated earlier, there are several reasons for employees to resign. The sooner it is addressed, the better. It is also unlikely for an employee to leave without notice because it impacts their record if they choose to apply for a different job. However, if it does happen, there are things to consider. It is essential to stay calm and professional. There are protocols as stated in the employee handbook or the employment contract when situations arise. As an employer, it is also relevant to communicate with the team or department concerned. Discuss possible solutions and share responsibilities among the members. If applicable, reach out to the employee and offer a deal to come back to work. If all else fails, be ready to open an application to fill in the vacant position.
What is the difference between a relieving, resignation, and termination letter?
The human resource department or the immediate superior writes the relieving and termination letter to employees. Meanwhile, an employee creates a resignation letter to be handed over to the human resource department or the immediate supervisor. A relieving letter is an official letter presented to the employee, acknowledging and accepting their resignation letter. A resignation letter is a letter intended to state a voluntary departure from the company. The termination letter informs an employee through a notice or an immediate termination. Immediate termination only happens when there is grave misconduct or contract breach on the part of the employee. In a relieving and resignation letter, the employee can still receive accrued payment for the days worked. Meanwhile, terminations do not guarantee accrued salaries.
Why is a relieving letter important to both the employee and employer?
It is necessary to understand the relevance of a relieving letter to both the employee and employer as it can impact both parties in the future. Firstly, a relieving letter serves as an official document containing the assurance of separation from the previous employer. It is crucial information knowing that the employee is no longer associated with the former company. The relieving letter also states the clearance of any dues or obligations of the employee from the previous employer. Most companies and managements also consider exit interviews to be relevant. It means that the company would most likely issue relieving letters to all employees who file for resignation. The relieving letter contains previous job experiences along with soft skills the employee possesses. It helps employees to be in a better position and informs employers of what the employee can contribute. It displays the professionalism exhibited by both the company and the employee. The future employer will refer to the relieving letter of the positive relationship in the past job. Most companies also seek out relieving letters when recruiting new employees for reference.
Is a relieving letter only filed after a resignation?
A relieving letter is a letter of acknowledgment. The processing of the letter starts when an employee submits a letter of resignation. The human resource department cannot process a relieving letter without a letter of resignation. According to the data published by Statista Research Department, the number of retired workers receiving pension rose to 45.1 million in 2019. The results mean employees possess relieving letters as evidence of work. It applies to employees who file for a retirement letter because a relieving letter states the last day of employment and the accrued salary and benefits received by the employee.
Should a relieving letter be issued to the employee? What happens when the worker doesn’t receive a relieving letter?
The company must issue a relieving letter to an employee if they filed for resignation and the employer has acknowledged and accepted the terms. In most states of America, a relieving letter is provided immediately at the time of resignation by the employee. In the case that the employer fails to give a relieving letter, the employee must communicate. There are plenty of reasons for the delay in receiving the letter. The common reasoning is the employee’s failure to finish assigned tasks or pass relevant documents. The relieving letter is similar to a clearance that assures the employee completed all required assignments. The employee sends a letter of acknowledgment to the employer confirming the completion of all responsibilities.
Transitioning to a different job requires a lot of preparation and intensive decision-making. What follows after resignation is even more critical. Future employers would seek out previous employers regarding an employee’s past performance. A relieving letter helps provide information about tasks and responsibilities, along with skills possessed by the employee. It is why it’s necessary to ask for your employer to provide you with a relieving letter. More often than not, employers would prefer their employees to have a good relationship with management. In the words of Tony Robbins, “The way we communicate with others and with ourselves ultimately determines the quality of our lives.” The relationship forged between people will remain and reflect in the next. Familiarize yourself with relieving letters in the article above and remember their importance for your next job venture.