What you need to know about proof of employment letters
Proof of employment, or verification of employment, can help your employee prove their credibility and demonstrate that they work for your company. A record of employment history is an important tool for your employees to prove to show potential lenders or landlords that they have a steady income. Without this document, your employee may find it harder to demonstrate their financial stability for a loan or mortgage. An employment verification letter may also help with a work visa renewal.
Below, we explain exactly what a proof of employment letter is, what details you need to include as the employer, and provide a helpful template to get you started. BambooHR can help you get your ducks in a row—keep tabs on your employee records with our powerful, easy-to-use platform.
Key takeaways
- A proof of employment letter is a formal document issued by an employer that confirms an individual’s employment.
- A proof of employment letter is also sometimes called an employee verification letter.
- An employee may request the document to prove their credibility when applying for a loan or mortgage, pursuing a new job, or renewing a work visa.
What is a proof of employment letter?
A proof of employment letter is a formal document from an employer that confirms whether an individual is currently employed or was previously employed by your company. It’s also known as an employment verification letter. It may also be called an employment confirmation letter, or income verification, work verification, or salary verification.
There are a number of reasons why an employee may request an employment verification letter, from verifying income level and proving income stability to demonstrating employment status. It may also be needed as supporting documentation for work visa applications.
The document confirms the employee’s employment status with your company and how long they’ve worked for you.
When would I need to issue a proof of employment letter?
An employee may request a proof of employment letter for a number of reasons. These include:
- Applying for a mortgage or loan: The financial institution will need to confirm that your employee has a guaranteed, steady source of income and the ability to repay monthly instalments.
- Renting a home: The landlord or property management company will need to feel confident that your employee can cover their rent payments.
- Seeking other employment: If your employee is looking for another job opportunity, the prospective employer may need it to carry out background checks.
- Renewing a visa: Your employee may need to show proof of employment for certain work visa requirements.
As an HR professional, you should be aware of the various scenarios in which your employees may need you to issue a proof of employment letter. As they may be requesting it for important life events, it can help to build trust between your company and employees.
Employees can also request proof of employment themselves from HMRC, via the HMRC app or their personal tax account. They can also request their employment history using a paper form.
What should be included in an employment verification letter?
Proof of employment letters are used to confirm that an individual is employed, or has been employed, at your company. Privacy legislation may affect what information about your employee you can share, so they may need to sign a release first. It’s important to avoid violating any data protection policies.
Proof of employment letters may differ slightly depending on the scenario, but will usually include the following:
- Employee name
- Employee job title and role
- Employment start and end dates
- Employee salary or pay, including frequency, and reason for termination (if applicable)
- Employer’s contact details, including address
The letter should also carry your company’s letterhead, which acts as further proof of authenticity. You can confirm with your employee if they require a physical letter or email.
What isn’t included in an employment verification letter?
You should only disclose the information you’re legally permitted to do so in a proof of employment letter. It’s important to remain formal and professional when writing the proof of employment letter, as the document can help your employee (or former employee) to prove their credibility. Plus, it reflects positively on your company.
Remember, it’s not a letter of recommendation. The only purpose is to prove employment. Stay on topic and avoid rambling about their personal qualities or performance.
Employment verification letter template
Now you know the purpose of a proof of employment letter, and the types of things it may be required for, it’s time to put it into practice. Use this proof of employment letter template as a guide and add the relevant details:
Date: [Date]
To Whom It May Concern,
Please take this letter as confirmation of [Employee Name]’s employment with [Your Company Name].
- Employee Name: [Name]
- Position/Job Title: [Insert Job Title]
- Dates of Employment: [Start Date] – present
- Salary: [Salary Amount or Salary Range]
- Employer Contact Information:
Email or Phone: [Insert Email Address and Phone Number]
Address: [Insert Address]
Please feel free to contact me if you need any further information.
Yours faithfully,
[Your Name]
[Your Job Title]
[Company Name]
[Email Address]
[Phone Number]
Create a process for employment verification letter requests
Get ahead and set up a process for proof of employment letters, ready for when they’re requested. Designate a member of your team who will create them, decide where they should be stored and determine who should sign off on them—so everyone is aligned. Proof of employment letters are easy to create, but it’s important to get them right as they can affect your employees’ futures.
BambooHR can help you to streamline your HR processes so you can focus on supporting your staff.