What is a relieving letter

What exactly is a relieving letter and when is it issued? Is it mandatory when leaving a company? I’d like to understand its importance for future employment.
 
A relieving letter is an official document issued by an employer confirming that an employee has formally resigned and completed all duties with the company. It states the employee’s last working day and confirms that they are relieved from their responsibilities, allowing them to join another organization without issues.
 
A relieving letter is a formal document provided by a company after an employee leaves the organization. It confirms that the employee has completed their notice period, handed over responsibilities, and is officially released from their role. This letter is often required when joining a new job as proof of proper resignation from the previous employer.
 
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