You were probably asked about your employment if you’ve ever filled out an application to rent an apartment, applied for a mortgage, or purchased a car. Before agreeing to a contract, lenders and landlords want to verify that applicants can pay the bills they’re committing to. That’s done with a letter of employment.
We’ll explain how to write a letter of employment that includes all of the necessary information the recipient will be looking for.
What is a letter of employment?
An employment letter verifies that a person has the job they say they have. It’s sometimes called an employment verification letter.
Letters of employment can be written by managers confirming the employment of their staff members. Other times they’re written by the employee themself and given to a boss or HR rep to sign off on.
Companies may be asked to provide a letter verifying a person’s past employment. Or, if a candidate is about to start a new job, the hiring manager might provide a letter stating that they’ve made an offer and confirming the new hire’s anticipated start date.
Why it’s important to send a letter of employment
Employment verification is often a required step in the process of renting or buying a home. Sending a prompt letter of employment will keep things moving along smoothly and ensure you don’t experience unwanted delays with something as important as your housing.
A letter of employment provides details, like the amount of your salary, that a lender needs to make an informed decision about how much they can offer you. If your salary doesn’t meet their required threshold, it could save you from making an imprudent financial decision.
When should you send an employment verification letter
When applying for a home or auto loan
Lenders want to confirm loan applicants are securely employed and earning enough money to cover their monthly payments.
When renting an apartment
Property managers use letters of employment as a tool to verify that prospective tenants have a reliable income.
When applying for a new job
Sometimes, a potential employer will ask for verification of your current job to confirm that all the details you’ve given them are accurate.
When applying for a visa or green card
If you’re relocating to another country, immigration officials want to see proof that you have a job waiting for you once you get there.
What to include in a letter of employment
The letter should be printed (or created in a PDF) using a business letter format on official company letterhead.
State the name of the employee and the purpose of the letter.
State the person’s job title, dates of employment, and any other information they’ve asked you to include. Salary is usually part of this list.
Share the best way to get in touch with you if further details are needed.
What you should omit
Comments on the employee or their work
Unlike a referral letter or reference check, this is not the place to provide personal commentary on the person’s character or work performance.
Sample letters of employment
Current employee example
New hire example
A letter of employment is concise, straightforward, and takes only a few minutes to write, but it’s an important protocol in securing a vehicle, housing, and even a new job.