Why would an employee need an employment verification letter?
If an employee requests an employment verification letter, it’s usually for one of four reasons:
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- They are applying for a home mortgage or a car loan, and the lender wants to confirm that the employee has a steady job and enough income to cover monthly payments before approving the loan.
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- They are applying to rent a home, and the property management company wants to confirm that they can afford their deposit, rent payment, maintenance and other associated costs.
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- They are requesting a loan payment reduction or deferral, and the bank wants to see proof of current income before determining whether to approve their request.
- They are pursuing an opportunity with another employer, and the company wants to verify their information as part of a background check process.
Whilst the employee may not disclose why they are submitting a request for an employment verification letter, it’s essential that they explain which pieces of information the other party requires, as well as contact information, including the address and the preferred method of delivery.
What should I include in the employment verification letter?
The information you include in your employment verification document depends on what the requesting party needs, as well as state requirements regarding the types of data that employers are permitted to disclose, specifically what may be shared with third parties. Additionally, the employee may be required to sign a release form before you can share information with a third party. An employment letter should be printed on your company’s official letterhead or stationery, which includes the company logo. It may include the following information:
- Employer address
- Name and address of the company requesting verification
- Employee name
- Employment dates
- Employee job title
- Employee current salary
Employment verification letter sample
Here’s an example letter that you can reference when composing an employment verification letter or developing your company’s employment verification template.
ABC Inc. 101 Main Street, Melbourne, VIC 3000
1 August, 20XX
XYZ Loan Company PLC,
123 Fitzroy Street, Melbourne, VIC 3000
To whom it may concern,
Please accept this letter as verification of Samantha’s employment with the ABC Inc. Employee name: Samantha Rice Employment dates: 5 May 20XX — Present Current job title: Senior User Experience Researcher Current Salary: $200,000 If you have any questions or need any additional information, please feel free to contact us at (0)321 550 111 or hr@abcinc.email.
Sincerely,
Richard Ramirez
Human Resources Manager ABC Inc.
Creating an employment verification request process
Once you prepare an employment verification letter template, fulfilling these requests may be much faster and easier. However, because it may take time to compile the employee’s information and deliver the verification document to the other party, it’s crucial that employees issue their request as soon as possible. To help streamline the process, consider communicating your expectations through the an employee handbook or anywhere else you share HR procedures. Here is a sample process outline that you can use:
Please submit all employment verification requests at least two working days in advance, and include the following information:
- The name of the organisation requesting the information
- The name of the organisation requesting the information
- Delivery instructions and information (e.g. fax number, postal address or email address)
- The reason for the request (optional)
Bear in mind that it takes an average of five working days for documents to arrive via standard post.
Making your needs clear will ensure a smooth employment verification process for everyone involved.
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