A proof of employment letter is a written communication from a current employer verifying the employee’s status with the company. These letters have numerous applications, from rental or mortgage applications, to job applications, and even to Visa applications.
When is a Proof of Employment Letter Used?
The most important use for proof of employment letters, for many employees, is proving their reason for staying in the country. When an employee applies for a Visa, they must state why they wish to stay in the country for one or more years at a time, and this most often has to do with either employment or higher education. Employers at large companies frequently supply proof of employment letters to foreign national employees to ensure that these workers are able to stay in the country.
Banks and other financial institutions request proof of employment letters from current employers to ensure that the applicant has a stable work history and income. Sometimes, these institutions will ask for an income verification letter instead of or in addition to the proof of employment letter, because the proof of employment letter acts primarily as a request to verify current or former employment. However, most financial institutions wrap these two together, and receive information regarding current employment and salary history in one letter.
Property management companies and landlords use proof of employment letters much the same way that financial institutions use them – to verify that an applicant for a rental property is able to pay their rent fully and on time. It will also verify for the landlord that the potential tenant has not lied about their job stability or income.
Legal Issues with Proof of Employment Letters
Employers should be careful not to solicit information from former or current employers that violates Fair Labor Standards Act Laws at the state and federal level. Also, when hiring a new employee, it could be beneficial to have a signed agreement between the employee and the company that allows employers to release information regarding the employee’s job performance and history in the event that the employee leaves the company or applies for another job. Often, when an employee leaves a job, they will ask to use their supervisor as a reference or ask the Human Resources Department to write an proof of employment letter for them – at which time, have the employee sign an agreement regarding the letter and keep it on file, so that the letter may be issued when any potential employer requests it.
Why Use a Proof of Employment Template?
]Proof of employment letters can be very simple to write, and use an easy-to-follow template that includes names of the addressor and addressee, as well as the name of the (former) employee; the date; either current or final salary information; position or job title; and a short description of the employee’s job performance, which features pertinent information regarding the current or former employee’s performance.
Download our free template to fill out a basic proof of employment letter. While these letters are subject to certain legal restrictions according to the Fair Labor Standards Act and state and local employment laws, these are not legally binding documents and a template can be easily used in most cases. However, if you have any questions regarding information that you may or may not disclose, consult an attorney.