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Allan is the cofounder of LessTimeSpent, loves his family more than breathing and builds weird lamps for fun.

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Writing A Letter Of Employment

Written by on Jan 9
new hire checklist

You’re busy running your small business, and one day an employee asks you for a letter of employment. What is a letter of employment and why do they need one?

A letter of employment is proof that someone works where they say they work, and sometimes proof they are paid what they say they’re paid.

There are several situations where your employee might need a letter of employment, including:

  • They applied for a loan, or a mortgage on a house, and the bank wants proof of their employment and income.
  • Before renting an apartment, the apartment manager may request a letter of employment.
  • They are borrowing money for a large purchase, like a car or a boat.
  • If they apply for a new job, the new employer may want to verify their current job and confirm their salary.
  • In some cases, when a person applies for insurance, they must prove their employment.

If your company is big enough to have a Human Resources person or department, check with them first. HR sometimes avoids reference letters because a letter of employment is considered less risky–it only confirms employment, it doesn’t recommend or endorse someone. Be sure to ask your employee exactly what they need–a letter of employment or a letter of recommendation?

What you need to include on the letter varies. Again, communicate with your employee. If the bank or apartment needs their salary and the number of hours they work per week, include those. However, be careful not to put more information than they ask for, and save yourself the trouble of any privacy issues.

Key Tips For Writing A Letter Of Employment

Short and simple is best. Mind the details. Hey, your employee is trying to get a mortgage on their first house, so print their letter of employment on company letterhead, include your contact information, and be sure to sign and date it!

Letter Of Employment Template