Clearance Card Law and Legal Definition

Clearance card refers to a letter given by an employer to a departing employee. It states the duration and nature of the employment and also reasons for leaving. A clearance card is simply a letter, be it good, bad or indifferent. It is given to an employee at the time of his/her discharge or end of service, showing:

1. the cause of such discharge or voluntary quittance,

2.the length of time of service, and

3.such other facts as would give to those concerned information of his/her former employment.

However, a clearance card is in no sense a letter of recommendation. In many cases it probably would be of a form and character which the holder would hesitate and decline to present to any person to whom s/he was making application for employment.[ Stewart v. Raleigh & A. A. L. R. Co., 137 N.C. 687 (N.C. 1905)].