40+ Sample Employment Letters

Defining Employment Letters

We define an employment letter as a type of business correspondence that provides information about a person’s employment status with a company. Employers often use these letters to confirm a current or former employee’s professional arrangement with the company, as well as other concerns that the third-party entity may want you to verify. The document may even include specific information used to identify an individual, such as a person’s date of birth and social security number. It’s an important form of communication between an employer and a prospective employer or third party to help validate a claim, while also documenting the exchange for legal purposes. And to help determine the legitimacy of the letter, one of the most important components to look for is the signature of the employer’s authorized representative.

Why Is it Necessary?

These days, nearly everything must be in writing for reasons that all point to a business and a legal intention. Third-party verification is often necessary for further confirmation of a person’s claims regarding their employment, especially if there are certain items in the application that employers are very particular about. That’s because letters of employment are less risky compared to reference letters and recommendation letters, which don’t tell much about an employee’s specific work details. In other cases, people need employment letters to rent out a property, apply for a loan, or get a new job.

And since these letters are crucial for a multitude of reasons, you must take the time to understand what to emphasize in the letter to meet a request and make the right impression.

How Does It Differ from a Background Check or Reference Letter?

It’s easy to confuse employment confirmation or verification letters with background checks or references. When you talk about background checks, it’s a process that demands a more in-depth look into a person’s employment history, past addresses, and potential records of criminal activity. It goes into every minor detail of an individual’s private life and work experiences. A reference check, on the other hand, takes a broader approach to the situation by discussing a fair amount of details about an employee’s personality and work ethics. Reference letters tend to pay more attention to who a person is as a professional, to ease the recruitment process for potential employers.

And in contrast to the previous two, employment letters tackle nothing but the facts about an individual’s employment status, including their job title, years of employment, and other related details. The way it stays focused on only what is necessary is what makes it an essential requirement in many formal applications.

When Do You Write an Employment Letter?

While running a business, you might have employees who’ll request an employment letter for whatever purpose. And with the U.S. employment rate at 60.4% in 2018, as discovered by Statista, you can only imagine the number of employment letters produced every day. In most cases, employees use these letters to validate their work history for another party to acknowledge. Some common reasons for an employee to ask you to write an employment letter include the following:

Property Rentals: Landlords almost always require potential tenants to provide an employment letter to confirm a person’s work details based on what’s reflected on their application. That’s because many applicants tend to lie on paper about where they work and how much they make. Many people believe that exaggerating their compensation may potentially increase their chances of gaining a landlord’s approval. As a result, more landlords are taking a smarter approach by having tenants verify their claims in the rental application. It’s the best way to confirm that an applicant can afford the deposit, monthly rent, and other payments associated with the rental.Loan or Mortgage Applications: When you apply for a loan or obtain a mortgage on a house, banks and lenders will need proof of your source and amount of income. As a crucial requirement of most, if not all, financial institutions, this document helps validate one’s capacity to settle the debt down the line. It’s unlikely for a private firm to lend money to a borrower who has no means to pay the loan, as this would make it impossible for the sai party to uphold their part of a loan agreement. So if you fail to provide an employment verification letter, it’s less likely that the bank will grant your request.New Employment: It’s alarmingly common for people to lie on their résumé in hopes of seeming more competent in the eyes of a potential employer. So to confirm an applicant’s previous job and salary, employers may ask for a letter that confirms one’s current employment with a company. Most employers even prefer this type of correspondence over simple reference letters due to how it focuses only on what the person you are writing the letter to wants to know. It makes the hiring decision easier to make, especially when a person’s credentials already meet company standards. And with 7.27 million job openings recorded at the end of October 2019 by Statista, you’ll want to move as fast as possible.Visa Issuance: Making travel plans is all fun and games until you realize the amount of work you need to do to get your travel documents ready. Some international destinations impose strict policies that screen visitors before they enter the country. Government officials want to make sure that tourists are financially secure to travel and have no intention to look for work in their country without the right papers. In such circumstances, employment letters help consular officers approve or deny an applicant’s visa request. As for those assigned to work in a foreign country temporarily by the same employer, verification letters are necessary to support additional documentation.Insurance Request: In some cases, insurance companies will require you to prove your employment for your application’s approval. It may even help speed the process along a bit faster upon confirmation of your employment details. Insurance companies may refer to the letter to verify the employment dates indicated in their application, making one step of the process easier to achieve. This case applies to health insurance, auto insurance, and house insurance, to name a few. However, note that having a job isn’t always a necessity for getting insurance, as most states do offer coverage for struggling individuals and families.

How Do You Construct a Good Employment Letter?

First things first: never allow an employee to compose an employment letter by themselves and under your name. It might sound tempting to leave all the work to someone else while all there’s left for you to do is to sign it—the easy way out isn’t always the best option. Slacking off will only put your company’s reputation at stake, especially if you fail to review and revise the letter when necessary. Letters like this have to be personal yet professional enough to get the right message across. Doing so will put you in control of what information readers have the right to receive based on what you share.

For further directions on how to create an accurate proof of employment letter, refer to the guide below.

1. Gather the Essential Details

Be mindful of the details you note in your message. The company or firm you are writing to might have several requirements that you must include in the employment letter. Most letters should contain the name of the employee, their position in the company, the duration of their employment, as well as their annual income. Remember only to note down the information that was asked for; otherwise, you may want to avoid mentioning it in your letter. Be sure to ask the employee for a list of details that the recipient expects to find in the letter for reference. It’s best to prepare a checklist, so you don’t end up leaving anything important out. Knowing the specifics of the employment letter beforehand should help streamline the writing process.

2. Use a Business Format and Tone

Always consider your audience when writing any form of business correspondence. It’s also best to use a formal tone when dealing with employers, banks, financiers, and property managers. Using simple language and shorter sentences will always come as an advantage to you and the person reading your letter. Following the format of a business letter should also keep your letter professional and easy to read, as it creates a smooth flow of suitable material for your content. That would mean including an appropriate salutation at the beginning and a handwritten signature at the very end for formality’s sake.

Staying relevant to the topic is another essential tip to remember to help you maintain the conciseness of your letter. And because a person’s college loan, mortgage loan, or future career move could be on the line, you have to make sure you’re pulling on all the right strings when crafting the letter.

3. Introduce Yourself

While you may be writing on behalf of the company, you’ll want to let the recipient know what authority you have to act as a representative. Hence, the first part of your letter should explain who you are, why you are writing, and what relation you have to the employee. You can also mention how long the subject has been working for the company or under your management. For instance, you can specify your position as the company’s HR manager and that you’ve been working with the employee for the past five years. A brief introduction should help you gain the trust of the person you are addressing the letter to, so whatever claims you make may be advantageous to one’s case.

4. Stick to the Facts

Resist the urge to state your opinions about an employee unless the person you are writing to requests for one. It’s always a good idea to only include information that is verifiable by records. Not only does it make the content of your letter credible, but it also helps simplify your message for readability and conciseness. It should keep you from getting into legal trouble with either party as well. But if an employee can provide an employment form that you can fill in with data directly, then all the better. Employment information forms make the process a whole lot easier because of how the data requested remains specific to its primary purpose.

5. Include Company Information

Notice how most business letters come with a company letterhead?

Apart from building the letter’s formality, it also makes sense to include essential information about the company writing the letter by adding an official letterhead. If they have further questions or concerns that you can verify, recipients can quickly reach out to you through the details indicated in the letterhead. It typically consists of the company name, contact details, and mailing address that employers and banks can use as a reference. And so they know who to get in touch with if they feel the need to clarify specific details mentioned in the letter, don’t hesitate to write down your phone number and email address at the end of the employment letter.

6. Don’t Attach Formal Documentation

Avoid sending private employee documentation to another organization, including personnel records, individual reports, and other documents deemed confidential. You need to have the proper authority to share this information with someone else, especially if it can be damaging to the subject’s reputation. Or worse, it may even put your company at risk of releasing sensitive data that no other company or agency should be able to access. Be sure to run this over with the employee requesting the letter to determine what they allow you to specify in the letter and what remains off-limits.

What NOT to Include in the Employment Letter

There are a few things to avoid mentioning in your employment letter. While there are no existing federal laws that dictate what you can and cannot disclose in an employment letter, some civil and state laws help protect the privacy of employees by limiting what you can discuss in the correspondence.

One of the things you shouldn’t talk about in an employment verification letter is an employee’s performance at work. Confidential information like this may potentially damage a person’s reputation and lead to pitfalls that would get you in trouble with the authorities. The law also prohibits the mention of any class-protected information deemed discriminatory toward an employee. Such cases include an employee’s marital status, health, religion, and sexual orientation. It’s best not to include anything beyond what the employee or third party asks for so as not to put yourself in a tricky situation.

Familiarizing these laws and protection policies should help you avoid any legal challenges that come your way.

Regardless of the number of employees you manage, you always need to prepare yourself for instances that will require you to write a clear and concise employment letter. It’s a big responsibility that employees expect you to take seriously. Hence, using an employment letter template can be a huge help to ease the burden of writing. By taking the purpose and scope of the letter into consideration, you’ll be able to craft a professional correspondence in no time!