Big life moments—like renting a new home, applying for a loan, or handling legal matters—often require proof of stability and income. For landlords, lenders, and government agencies, confirming employment details is a key step. That’s where a letter of employment comes into play.
This professional statement, issued by an employer, verifies essential details like job status, compensation, and responsibilities. Why are these letters so important, and how can you create one that supports your people while meeting third-party requirements? This article will review their purpose, what they include, and best practices for writing a letter of employment.
What is a letter of employment?
A letter of employment is a document written by an employer to confirm a team member’s employment status. Organizations like banks, property management firms, loan servicers, and the United States Department of State use these letters to verify applicants’ employment and income.
Also called an employment verification letter, this document verifies a person’s:
- Employment status (i.e., full-time or part-time)
- Job title
- Job description and responsibilities
- Work schedule
- Proof of income
- History at the company (including dates of employment)
Letters of employment may also include information about the team member’s benefits or additional details about the employer.
Why do your people need a letter of employment?
Employment verification letters are used in various situations, including:
- Renting a home or apartment: Landlords may require letters of employment before approving rental applications to ensure the tenant can pay their rent
- Applying for a mortgage or loan: Banks require a letter of employment to determine whether the applicant can repay the loan
- Court cases: Some court cases, especially ones involving child support, personal injury, or discrimination, require letters of employment to verify income, calculate lost wages, or confirm job title, responsibilities, and employment dates
- Proof of residency status: Letters of employment can act as proof of residency for landlords, banks, government agencies, and schools
- Background checks: Letters of employment can be used to verify employment history during a background check
- Employment history for prospective employers: Some employers may request a letter to verify employment history and qualifications
How to write a letter of employment
Here’s how to craft a letter of employment that clearly outlines role responsibilities, terms of employment, and important details such as salary, benefits, and workplace policies. The information included may depend on the use case. For example, a letter for a lender may require salary details to verify income, while a letter for a prospective employer would focus on employment history and job responsibilities.
1. Include basic employee information
Use your people data to ensure all personal information about the team member is clear and accurate, including:
- Team member name
- Team member’s job title
- Employment status/employee type (full-time or part-time)
- Job requirements and duties
- Dates of employment
2. Outline compensation and benefits
If required by the third party, list and explain your team member’s compensation package clearly and concisely so financial institutions can identify the information they need quickly. Include financial details such as:
- Yearly salary or hourly rate
- Bonuses
- Commissions
- Benefits (health insurance, paid time off (PTO), retirement plans, etc.)
- Other special agreements (covered moving costs, education costs. etc.)
3. Communicate employment terms and conditions
Cover specific employment terms and conditions including:
- Contract length: Specify whether the employment is fixed-term (e.g., six months or one year) or indefinite.
- New hire probationary period: Indicate if there is a trial period to evaluate the new hire’s performance and fit. Include the exact start and end dates.
- A non-disclosure agreement (NDA, also known as a confidentiality agreement): State whether the employee must sign an NDA, or a legal contract ensuring that sensitive company information remains confidential and isn’t shared outside the organization.
4. Add employer details
Employment letters also include employer details so landlords, banks, or other entities can verify the team member’s information if needed. Clearly state:
- Company’s full legal name and address
- HR department or hiring manager contact details, including email and phone number
- The owner of the company
- Company website
5. Cover the third-party’s information
Gather information from your team members about the party requesting a letter. Address the organization by name and include the name of your (or your team member’s) contact person.
Review what information the third-party requester needs and ensure you include any additional details they want on top of the basics covered above. For example, some organizations may want information about job stability as well as job title progression.
Letter of employment template
An effective employment verification letter communicates all of the information above clearly so the requesting party gets the information they need. Try out the following letter of employment template and adapt it to your and the third party’s needs:
[Your company name]
[Your company address]
[Your company phone number and/or other contact information]
[Date]
[Requesting party’s company name]
[Requesting party’s contact name]
[Requesting party’s address and contact information]
Dear [contact or company name],
This letter verifies [name of team member]’s employment with [your company’s name]. [Team member name] was hired on [date] and has been working [full time/part time/other employment type] as [job title] since [start date]. [If the employee no longer works with you, state the end date here.]
[Team member name]’s [salary/hourly rate] is [pay rate]. Their benefits include:
- [List benefits and other requested financial information here.]
[Team member name]’s contract also includes the following employment terms and conditions:
- [List applicable terms and conditions.]
[If your team member or the third party requested additional information, insert it here.]
If you have any other questions, you can contact me at [insert contact information here].
Sincerely,
[Your signature]
[Your printed name]
[Your job title]
[Your company name]
<<Download this editable employment verification template to support your people.>>
Letter of employment example
Here’s an example of a verification letter sent from ABC Tech Solutions to GreenTree Apartments for their employee, Jane Grant.
ABC Tech Solutions
123 Innovation Way
Tech City, CA 98765
(555) 123-4567
January 1, 2025
GreenTree Apartments
Mr. John Smith
456 Main Street, Suite 200
Renton, CA 98765
Dear Mr. Smith,
This letter verifies Jane Grant’s employment with ABC Tech Solutions. Jane was hired on August 1, 2021, and has been working full-time as a Software Developer since her start date.
Jane Grant’s annual salary is $85,000, paid biweekly.
Her benefits include:
- Participation in the company’s 401(k) retirement plan with a 5 percent employer match
- Professional development reimbursement up to $1,500 annually
Jane Grant’s employment contract is ongoing with no fixed end date. If you require further information, feel free to contact me at [email protected] or (555) 123-4567.
Sincerely,
Kelly Anderson
January 1, 2025
HR Manager
ABC Tech Solutions
Letter of employment best practices
Follow these best practices to ensure your letter of employment meets all parties’ needs.
Keep it professional
Since your people often need to use letters of employment for official purposes, your letter should follow typical business standards for professional communication. Using your company’s official letterhead helps create a sense of authenticity and professionalism.
Write the document in a business letter format, which includes a header with all of your organization’s details and the details of the requesting party. If you don’t have a name for the third-party requester, open with “To whom it may concern” or something similar.
A handwritten signature also adds to the authority and authenticity of your professional letter. If it’s a digital letter, you can insert an image of your signature in the document.
Accommodate team member requests
Depending on the purpose of each particular letter of employment, your people may have specific requests for the content. If it’s allowed by your organization, have your people review their letters of employment to ensure everything is correct. This review process can prevent misunderstandings, build trust, and promote transparency between the company and its people. It also empowers team members to address any discrepancies early, reducing potential issues with third-party verifications.
Send the letter as soon as possible
When your people request letters of employment, they often need the document quickly. You can use the letter of employment template to draft, review, and send the letter promptly. Even as you work quickly, ensure you take the time to proofread. Double-check all the facts provided, proofread, and get a second opinion to ensure your letter meets the needs of all those involved.
Support your people with a professional letter of employment
Sometimes personal and professional lives intersect when your people need evidence of their employment and income to accomplish personal tasks like buying or renting a home and securing loans. Ensure your people feel supported in their personal and professional goals by providing clear letters of employment with detailed breakdowns of job roles, compensation, and work history.
<<Download this editable employment verification template to support your people.>>
Letters of employment FAQs
How do you get an official letter of employment?
The employment verification letter request process varies by company. Some organizations require an official employment verification request form from either the team member or the third-party requester, while others follow a more informal approach.
Depending on company policy, HR may draft the letter directly or delegate the task to a supervisor. While disclosing the reason for the request is usually optional, specify what information the third-party requires to ensure the letter meets their needs.
Recommended For Further Reading
Can people write their own letters of employment?
No, self-written letters of employment aren’t accepted for rental, mortgage, or loan applications. Employment verification letters must come from employers so the third-party requester can confirm the information is accurate.
Why is it important to have an employment verification letter?
Letters of employment are important documents for various official functions, including rental, loan, or visa applications. These letters serve as confirmation of your people’s employment history and income so they can demonstrate their ability to maintain regular rent and loan payments. They also clarify job responsibilities and compensation so all details are clear between employer and team member, promoting transparency, mutual understanding, and a strong working relationship.
