If you handle human resources needs on behalf of your company, you may occasionally receive requests from employees to provide their proof of employment to a third party, such as a financial institution or another employer. The best way to fulfill these requests is by composing an employment verification letter. This document may confirm an employee’s employment status, employment dates, salary information and other details, depending on the reason the third party needs employment verification and what your organization allows you to share with other companies.
Here is some background on why employees may request this document, what you should include and a sample letter you can use to create your company verification of employment letter template.
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:
- They are applying for a home mortgage or an auto loan, and the lender wants to confirm the employee has a steady job and enough income to cover monthly payments before approving the loan.
- They are applying to rent a home, and the property management company wants to confirm they can afford their deposit, rent payment, maintenance and other associated costs.
- 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.
While the employee may not disclose why they are submitting a request for an employment verification letter, it’s essential 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 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 verification letter should be printed on your company’s official letterhead or stationery, that 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 you can reference when composing an employment verification letter or developing your company’s employment verification template.
101 Main Street
August 1, 20XX XYZ
Loan Company, LLC
444 First Ave.
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: May 5, 20XX – Present
Current Job Title: Senior User Experience Researcher
Current Salary: $140,000
If you have any questions or need any additional information, please feel free to contact us at 214-555-0101 or email@example.com.
Human Resources Manager
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 an employee’s information and deliver the verification document to the other party, it’s crucial employees issue their request as soon as possible. To help streamline the process, consider communicating your expectations through an employee handbook or anywhere else you share HR procedures. Here is a sample process outline you can use:
Please submit all employment verification requests at least two business days in advance, and include the following information:
- The name of the organization requesting the information
- The address of the organization requesting the information
- Delivery instructions and information (e.g., fax number, mailing address or email address)
- The reason for the request (optional)
Keep in mind it takes an average of five business days for documents to arrive via standard mail.
Making your needs clear will ensure a smooth employment verification process for everyone involved.