Verification of Employment Letter: What Is It?

The verification of employment letter refers to an official document that contains all the essential details of a person’s employment verification. In short, the detailed letter is proof that someone is employed in a certain business. And such verification letters cover numerous types of functions from applications in immigration, membership, loan, and more. So if an applicant receives a verification of employment letter, that person is now officially employed.

It has been reported that 155.76 million Americans were employed in 2019; however, the employment rate is set to decrease up to 5 million Americans due to COVID-19.

Meanwhile, VeriFirst said that 53% of job applications and resumes have fallacious information. Specifically, 21% of resumes have fake degrees enlisted, 29% contain incorrect employment dates, and 40% have inflated salary expectations without any income verification.

Why Is a Verification of Employment Letter Important?

A verification of employment letter is essential since it helps organizations hire the right employees. By right employees, that means those who are really qualified for the post shall get the job because verification involves confirmation and investigation. For example, it was reported that 53% of job applications and resumes observe fallacious details. To be more specific, 21% of resumes enlisted fake degrees, 29% have wrong employment dates, and 40% listed inflated salaries with no income verification. And it is through a formal letter known as the verification of employment that falsified information can be identified.

Also, employment verification letters are what people request for loan approval, immigration approval, and any other job position for employment purposes. So without the verification of employment letter, you have no proof about being officially employed. Thus, these letters bring credible and reliable information about any employment data to disclose, which may concern various stakeholders out there. And it is important for the letter to contain significant details to be believable, which you will learn more about later on.

Significant Parts of a Verification of Employment Letter

What makes a complete and professional verification of employment letter? Hence, ensure that you incorporate the important parts so your details are more believable, credible, and accurate enough to verify one’s employment data. And the standard parts to include in a verification of employment letter are the following:

Company Letterhead: First things first, the verification of employment should have the company’s labels. That would concern the verifier’s name, business name, business address, contact information, and even the signature logo. This branding serves as the company letterhead which will help identify your organization’s significant information.Purpose: What a verification letter contains also depends on the function or purpose of needing the letter in the first place. For example, a government employment verification would have different details compared to a bank employment verification. Some functions concern a person’s salary from previous employment while others are more concerned about the current income. Thus, be specific about the requirements where it goes according to your purpose.Employee’s Basic Details: Besides the company letterhead, the employee information is also relevant. Introduce the employee’s basic details from the full name, address, and contact information. Recognize the employee to verify because not stating the name or any significant info might have the letter to refer to any other person, which is wrong.Job Information: Since the letter is called verification of employment, then the meat of the letter is to state the employment details. State the vital job information from the employment starting date, job position or title, salary, bonus amount, former employee background, etc.Statement of Employment Verification: Whether a person is previously or currently employed, there should be a clear statement in the employment verification about it. This part can be inserted in the body of the letter where an official statement validates the whole point of the letter. Thus, the statement answers the question if one is verified or not.Verifier’s Signature: Another way to attest the details in the verification of employment letter is to have the verifier affix his or her signature in the letter. This section basically concludes the letter since a verifier confirms that the details written in the letter are correct by signing the form. So if a letter lacks the signature, then its content can still be questionable.

What Are the Three Basic Types of Verification of Employment Letters?

Indeed, you are about to make a verification of employment letter. But besides knowing its definition, importance, and elements, you should also identify what type of employment verification letter it is. Identifying the type basically helps you know what appropriate details and specifications should be added in the letter. So without further ado, here are the three major types of verification of employment letters:

Verification of Previous Employment Letter

Verification of previous employment letters is relevant when job seekers want to apply to another company. So if that professional needs to discuss his or her job history in the job application form, the verification of previous employment letter’s details will be helpful. From the word itself, previous—it tackles on a professional’s employment details from a previous job. So even if that person is no longer working there, he or she still has a right to verify about the past employment, which will concern the new company too.

Verification of Current Employment Letter

The next example is the verification of employment concerning a professional’s current job, meaning he or she is still working in a specific company. This part greatly affects those who consider a loan application because lenders or banks would want to know about a person’s capability to pay loans timely from the salary amount to the credit score before actually approving a loan. Therefore, expect the employment letter to cover the annual salary received, bonuses, and some other cash-based entitlements that lenders want to know about.

Standard Verification of Employment Letter

The generic way of creating a verification of employment letter is acceptable for most functions. This is because there are no strict requirements involved, particularly in the employment duration. So if rigid requirements are not part of the deal in verifying one’s employment, go for the standard verification of employment letter. Instead, focus on writing about the employment relationship as well as the purpose behind making it.

How to Make a Verification of Employment Letter

As the HR, manager, or employer, it is an automatic concern to know how to create the verification of employment letter. Current employees or even ex-employees might ask for these documents for varying reasons. Luckily, preparing one is not that complicated, especially when you follow these five easy steps:

Step 1: Use a Sample Verification of Employment Letter

The easiest way to create verification of employment letters is when you have a reference on how to develop the said document. You can have as many samples to choose from that you can edit, download, and print anytime. So at least you will be familiar with how the standard structure or layout of such letters look like while adding what you have just learned from the discussions earlier. Consequently, you are merely giving adjustments and the finishing touches instead of creating something out of scratch, which would have taken longer.

Step 2: Insert Your Company’s Brand in the Letter

Beautify the letter by adding your company’s brand. You already know that branding is part of the process to personalize the letter. In fact, it will be a great marketing opportunity to state your business name, business logo, and signature colors in the letter in case more people would see the document. More so, the company letterhead is what makes the letter official and authorized rather than just using a blank sheet of paper with no branding.

Step 3: Add the Significant Parts of Employment Verification

You already know that there are six main parts of a verification of employment letter. So from the letterhead down to the signature line, be sure you have everything covered that is relevant for your version of a verification of employment letter. Arrange them into sections as well so your data will not be too jumbled and it will be easier to understand. Labeling and categorizing your letter is one way to do that. But you can also be more creative than that as you edit the sample templates.

Step 4: Keep It Informative but Straightforward

The best advice for writing verification of employment letters or letters, in general, is to be informative yet straightforward. You can avoid long and unnecessary words by being direct to the point. Also, add as much information as you can as long as they are relevant to the subject. Otherwise, you might lack content. And most especially, the statement of verification and signatures should be there as they are valid points to verify the letter.

Step 5: Organize All the Details from the Layout, Design, and Format

Formatting is one of the crucial parts of making your letter. The key is to focus on the business letter format since the verification of employment letter is still a formal document. Next, decide if the letter should be printed or sent as an email. Lastly, observe an easy-to-follow document. That means reading and understanding the message in the letter should come off easily. If not, then come up with the necessary changes to fix it.

FAQs

When do employees seek a verification of employment letter?

The need for verification of employment letters will vary. But generally, employees need the letter when they apply for a car loan, home mortgage, property management, deferral, or perhaps, another job.

What documents are acceptable as proof of income?

Indeed, the verification of employment letters helps avoid false information. But when you need help on how to verify, specifically on what documents are allowed as proof of income, you would need pay stubs, wage and tax statements, tax returns, social security proof of income, bank statements, and workers’ compensation letters.

Are payslips accepted as proof of employment?

Yes. According to GOV.UK, payslips are accepted as proof of earnings, pension contributions, and taxes paid. And the employer can decide if it should be printed or given as an electronic copy, as long as it is given on or before the payment date.

You already know that an employment verification letter can be as detailed as to state one’s employment status, salary details, employment history, and job title. So it only makes sense to be careful in making it wherein all the data is actually correct, verified, and investigated. And what better way to create it than to make your job easier with sample verification of employment letters as your guide? With premade, downloadable, and customizable samples up for grabs, you can craft such letters within minutes anytime. Make your own letter now!