What is an employment verification letter?

An employment verification letter, or proof of income letter, is a formal document used to verify the employment history or income of a current or previous employee. The letter could also be referred to as a letter of employment, income verification, salary verification, work verification or employment confirmation letter.

Why would an employee need a verification letter?

Here are some reasons an employee might request an employment verification letter:

• When they are applying to get an auto or home mortgage loan, and the financier wants to confirm that the employee has a steady income source that is sufficient to cover the upcoming monthly payments before they can approve the loan
• When they want to rent a house, and the landlord or property management firm wants to confirm that they have sufficient income to cover the deposit, rent payment, house maintenance and other linked expenses
• When they are requesting a loan deferral or payment reduction, and the bank wants to have proof that the employee has a steady income before they decide on whether to approve their request
• When they are pursuing another employment opportunity, and the prospective employer wants to verify their details as a means of fulfilling their background checks

What to include in an employment confirmation letter

A third party may review your employment verification letter, so you need to treat it as a formal document. Here’s what to include in an employment confirmation letter:

Company information

The employment confirmation letter should carry your company’s official letterhead and logo. In addition, the letter must include your address as the employer.

Employee information

Include the name and address of the employee requesting verification, employment duration, job title of the employee, employee job duties and responsibilities. You can ask the employee to clarify whether they need a physical letter or email. If you have to send a physical letter, write in standard business format with the details of your company, date and recipients details in the upper-left corner.

Terms of your contract

You can also include the current salary of Employee, any annual bonus amount, and the reason for employment contract termination (if applicable). The employee may have to sign a release form for you to release information to a third party.

How to write employment verification letters

Here are the steps to follow as you write your employment verification letter:

1. Start preparing promptly

Preparing to write an employment verification letter earlier can help you write the letter faster and fulfil the request on time. Preparing involves finding the employee’s files and documents and putting them in one folder. This will help you reflect on their performance in case you need to. However, an employee should issue their request as soon as they can because it will take time to compile their employment details and ensure the other party gets the confirmation letter on time.

2. Request additional information from the employee

Notifying your employees about what you may need from them and the timelines can help you organise yourself better.

The following is a sample employment confirmation outline you can use:

Please submit all your requests for employment confirmation at least two business days in advance using a form or email that has the following details:

• The name and address of the third party that will be the recipient of the letter
• The mode of delivery and additional associated delivery information
• The information the third party requesting for the letter requires
• The reason for requesting the employment confirmation letter (optional)

3. Include essential details in the letter

Ensure that you only disclose the information that you are legally obliged or permitted to. Remain formal and concise as you prepare and send the letter since it is a way to help your current or former employees secure various things such as loans, new jobs or mortgages. A professional letter also reflects well on your company overall.

Related: Onboarding Guide

Sample employment verification letters

The following is an example an of employment verification letter that you can reference when composing yours to ensure that you include all appropriate content:

Jones Realtors

10 Cavendish Square, Marylebone,

London W1G 0PG, United Kingdom

March 25, 2021
170 Oxford St, Fitzrovia,
London W1D 1NQ, United Kingdom

To Whom It May Concern,

Please take this letter as confirmation of John Smith’s employment with Jones Realtors Inc. He has been an employee of our company since July 5 2019 with the title of Junior Salesperson. Jones Realtors’ offices are situated at 101 Washington Street, Seattle, WA75201. John Smith’s current salary is $40,000 with an additional bonus of $3,000 annually based on performance.

If you have additional questions or require more clarification, please feel free to reach out to us at 08220-534-030 or hr@jonesrealtors.email.

Sincerely,

Sarah Gomez

Human Resources Manager

Jones Realtors

Employment verification letter templates for PDF & Word

Use these employment verification letter templates to effectively verify the employment history or income of a current or previous employee.

*Indeed provides these examples as a courtesy to users of this site. Please note that we are not your HR or legal adviser, and none of these documents reflect current labor or employment regulations.