A clean exit, in order
An exit produces more documents than any other stage of employment, and new employers check several of them. Issuing them in order, and on time, is what makes an exit clean.
The documents, in the order they usually happen
1. Resignation acceptance letter, at the start of the notice period. Acknowledges the resignation and confirms the last working day and the handover expected.
2. No dues certificate, on or just before the last working day. Confirms non-financial clearance is complete: equipment returned, access removed, advances settled.
3. Full & final settlement letter. States the final amount payable to, or recoverable from, the employee. It is a cover letter for a figure payroll has already calculated, not a payroll or tax statement.
4. Relieving letter, at the end. Confirms the resignation was accepted and the employee is relieved from a specific date. It is the document that proves a clean exit to a new employer.
5. Experience letter, at exit. Records the service: designation, exact dates and a line on role and conduct.
6. Service certificate, when asked. A shorter, plainer statement of dates and role, of the kind a bank or visa office asks for; it can also be issued to someone still employed.
When employment ends at the employer's decision, a termination letter records the outcome of the company's own process: who, what role, effective when, and what follows. It is where careful, neutral wording matters most.
When final pay is due
The Code on Wages, 2019 took effect on 21 November 2025. Under its section 17(2), where an employee has resigned, has been removed, dismissed or retrenched, or has become unemployed because the establishment closed, the wages payable are to be paid within two working days. The appropriate Government can set a different time limit, and more favourable provisions in other laws continue to apply.
Plan the full and final settlement around that. Which final dues count as wages for this rule is a point to confirm with payroll and a legal advisor: gratuity and some other payments follow their own rules and timelines. This guide is general information, not legal advice.
Which one do you need?
Match the document to the stage of the exit:
- An employee has resigned: resignation acceptance letter.
- Handover and returns are complete: no dues certificate.
- The final amount has been calculated: full & final settlement letter.
- The employee's last day has passed: relieving letter.
- The employee needs proof of their service: experience letter.
- A bank or visa office wants dates and role only: service certificate.
- Employment ends at the employer's decision: termination letter.
Frequently asked questions
How is a relieving letter different from an experience letter? The relieving letter confirms the exit: resignation accepted, relieved from a specific date. The experience letter records the service: role, tenure and conduct. They are usually issued together, and some companies combine them.
What is the difference between a resignation acceptance letter and a relieving letter? The acceptance is issued near the start of the notice period and confirms the last working day. The relieving letter is issued at the end, after handover and dues, and confirms the employee has been released.
How is a no dues certificate different from a full & final settlement letter? The no dues certificate confirms non-financial clearance. The settlement letter is about the final salary and dues figure. They are often issued together but answer different questions.
How is a service certificate different from an experience letter? A service certificate is shorter and plainer, for a bank or visa office. An experience letter is fuller and usually written for a next employer.
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