An employment verification letter is used to prove that someone is currently or was previously employed at a company. These letters are often used to verify employment for lenders, or when someone needs to prove their residency, a specific skill, or that they’ve worked for a specific employer.
If you’re an employer, it’s important to understand what should and should not be included in your employment verification letters. This overview will provide key points to consider when drafting or requesting employment verification letters.
What is an employment verification letter?
Employment verification letters are used to prove that someone worked for a company or organization, and are often printed on official letterhead or stationery. You might request one when you apply for a mortgage or auto loan so the lender knows that you’re able to make the payments. They can also be used to confirm income for landlords or prove income when deferring or reducing loan payments. Sometimes courts will ask for employment verification when determining child custody payments.
Often, employment verification letters are used when someone is seeking new employment. The prospective employer may wish to verify the employee’s tenure at the company, or ensure that they have specific skills or experience for the new job.
What should be included in an employment verification letter?
State laws regarding employment verification letters may vary, but they often include:
- Employer contact details: Whether on official letterhead or typed into a document, employment verification letters should include the employer’s name, address, and who is verifying the employee’s information. This might be someone in human resources, depending on the size and structure of the organization.
- Requesting party’s contact details: The letter should also include the requesting party’s details, such as name, address, and contact name.
- Employee details: Next, include the employee’s full name and any other requested contact details, such as a current address or email address.
- Employee job details: The employee’s job details are an important part of the letter and can vary case by case. For example, a lender will want to know about the employee’s salary, bonuses, and other compensation, while a prospective employer may want to verify job title, skills, and duties. In some cases, you may also be asked to verify how and why employment ended, such as termination, layoff, or voluntary resignation.
- Signature and/or stamp: Finally, you’ll need to sign or officially stamp the document to prove that it’s valid.
It’s important to understand your obligations as an employer before you draft and send employment verification letters. Furthermore, because what an employer says can carry significant weight, you should be very careful about what you disclose.
Why is it important to have an employment verification letter?
These letters are important for employees, whether they are looking for a new job or hoping to secure loans. They may also need them to verify employment for residency status, court cases, and other important milestones. As an employer, you should have a standard policy about what you can and are willing to disclose, as well as a generally agreed-upon format. The also aren’t typically very detailed, so your organization can make its own “template” once you’ve researched state law and decided upon your policies.
How to create an employment verification letter
Creating one typically isn’t complicated, but it does require you to research the bounds of state law. For example, if your state requires employees to sign a release form before disclosure, you should also create a standard release form to handle these instances. Furthermore, if you have employees in more than one state, you’ll need to ensure that each verification and potential release form complies with each specific state law.
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