What is proof of employment?

Employment verification is the process of confirming an individual’s current or past employment with their employer. This is done through the distribution of proof of employment documents created by the employer on company letterhead. The documentation can be a physical printed copy or a digital copy, depending on the circumstances.

Employees may be required to provide proof of employment to qualify for several financial commitments, such as getting mortgage approval to purchase a home, proving to a potential landlord they can pay rent when applying for an apartment or gaining approval for a car loan. Whatever the case, when employees ask you for proof of employment, you can be sure they require the documentation promptly to move ahead with their life plans. Therefore, you should always have a template ready.

Other names for a proof of employment letter

Don’t be confused by someone asking for a letter of employment or proof of employment documentation when they use a different term. There are many names for this type of document that all refer to the same letter containing the necessary information. A letter of employment is also called a:

• Income Verification Letter
• Salary Verification Letter
• Work Verification Letter
• Employment Verification Letter
• Employment Confirmation Letter

Types of proof of employment

When an employee asks for proof of employment documents, they are requesting an employment verification letter. This is only the type of proof of employment that you, as an employer, have to do extra work to provide. Other documents that employees may be able to use to support proof of their employment include:

• Official pay stubs
• Bank statements
• Tax returns from the previous two years

If an employee comes to you wondering how to verify employment, you can suggest any of these methods and offer to write them an employment verification letter.

How to provide official proof of employment documents

To make the process stress-free and straightforward, put an official protocol in place to enable employees to get proof of employment documentation quickly and conveniently. As part of the information distributed to new hires through HR, provide instructions for requesting proof of employment. For example, detail:

• Who the employee should contact (supervisor, HR rep, etc.)
• What details they must provide in their request
• Whether the employment verification letter will be a digital or hard copy
• How far in advance the employee should request the letter

Providing clear instructions for how to request the employment verification letter makes it straightforward for staff to put in the request and rest easy knowing when they can expect to receive the documentation they need to satisfy lenders or landlords.

Writing a proof of employment letter

It’s a critical skill to be capable of writing useful and accurate employment verification letters that meet employees’ requests. Your employees depend on you as their supervisor to fulfill the requirements for this documentation set by lenders, landlords or new prospective employers. Your proof of employment letter should include the following information:

• The company where youemploy the individual
• Their job title
• Their annual salary
• The dates of their employment
• Whether you employ them on a full-time or part-time basis

Be sure to review the request from the employee carefully to ensure you include all relevant and necessary information they require.

Tips for writing a high-quality proof of employment letter

You want your employees to feel proud of their workplace and the job they do in all areas of their lives. So, when writing an employment verification letter, consider how you can make it look polished, professional and a positive representation of your company. Follow these tips for creating proof of employment documents that represent your company well.

Print the document on company letterhead

It’s critical for the documentation to look official and be immediately apparent which company the employee works for. Therefore, if your company has an official logo or branded stationery, this is the document you should write the letter on. In addition to the company logo, the header should have important information like the company address, your contact information and other necessary details for following up. This information should be clearly displayed and easy to find in case the person reading the letter needs to contact you for further verification.

Provide accurate details and those specifically requested

When the employee requests the letter, they will likely provide the necessary information you need to include pertinent details in the letter. The reason you’re writing the letter is important to understand since the information you provide to a mortgage lender will be different than that for a future employer. Proofread the letter and double-check details regarding employee salary, dates of employment and official job title to ensure the information you’re providing is accurate and true.

Take appropriate precautions

Your company might have policies surrounding what type of information you can legally share with other companies or individuals outside your organization. To ensure you are not violating company policy with the information you include in your proof of employment letter, carefully review disclosure policies and adhere to any applicable guidelines.

It’s also a good idea to ask the employee who requested the verification letter to sign a release form before you provide them with the final draft of the letter. This process protects you from the legal ramifications of sharing the employee’s personal information with a third party. The release form is the employee’s opportunity to provide you with the consent to share the necessary information about their work and employment in the letter.

Keep it brief

A letter of employment should be concise. Stay on topic and include only the necessary details such as your contact information and the employee’s job title, salary and dates of employment. Beyond these basic elements, you might provide a short description of their duties at the company before signing off. Avoid rambling on about the employee’s work performance or personal qualities. This is not a letter of recommendation and does not need to speak to the likability or positive attributes of the employee. The only purpose of the letter is to prove they are currently employed by your company and the related details of the employment.

How to provide the final draft

In most cases, the final draft of the letter of employment is provided directly to the employee. From that point, it is their responsibility to deliver the letter to the necessary party to verify their employment. However, before you complete your proof of employment letter, communicate with your employee regarding their preferred delivery method. Do they want a single printed copy on the official letterhead, or would they prefer a digital file?

While a printed letter was previously preferred, many people are going paperless and will require a digital file that they can email to lenders or landlords instead. In this case, discuss what file format they want to be delivered. A Portable Document Format (PDF) is usually a safe choice that will retain your formatting, regardless of what software program recipients use to view the letter.

Follow these tips for drafting and delivering a proof of employment letter, and employees will receive the documentation they’re looking for.