Letter of Employment Guide (With Sample Template)

What is a letter of employment?

A letter of employment is correspondence from an employer that acts as proof that someone is employed. Typically, banks, landlords, lenders and some governmental agencies require a letter of employment verifying the employment status of an individual to whom they are transacting with. In this way, letters of employment are common requests employees have of their employers. 

Do employers have to provide a letter of employment?

If you are an employer, you should generally always provide a letter of employment. Although there is no legal requirement to provide a letter of employment, there is no liability for providing a truthful one. So, there is no downside to providing a letter of employment. There is, however, a downside to not providing an employment letter. Not providing an employment letter to an employee can cause your employee unnecessary hardship and foster resentment. 

Keep in mind a letter of employment is not a reference letter. An employment letter simply verifies that an individual is employed and does not include a recommendation or any accolades signifying the quality of the employee.  

Can a letter of employment be an email?

Yes, a letter of employment can be an email unless the organization asking the employee for a letter of employment demands another format. For example, an organization may ask that the letter of employment be on company letterhead and have a wet ink signature. 

I as a letter of employment a binding document?

Some clients asked me when I ran my law practice if a drafting a letter of employment for a particular employee could pose any challenges down the road for the employer (e.g. making it harder to terminate the employee). However, these fears are unfounded. A letter of employment serves no purpose but to help an employee secure whatever service the letter of employer is verification for. A court would not rely on the letter of employment to help an employee win an argument. A letter of employment, simply, has no weight. Courts are aware these letters are important to an employees livelihood, and that any judgment that penalized employers would be a bed precedent for society.

How to create a letter of employment?

Creating a letter of employment is easy. It is only a few lines of text. You can even ask your employee to draft the letter if you are an employer. All a letter of employment requires is three sentences.

1. Verification that the employee is employed by your company.
2. If you are asked to provide the employee's title, years of service and compensation, state the employee's title, years of service and compensation.
3. A pleasant conclusion telling the reader to contact you if they have any questions. 

We have included below a sample letter of employment that you can copy. 

Letter of employment sample template 

Employment verification letter template:

[Date]

[Your Company name]

Re: Letter of Employment

To Whom It May Concern, 

We confirm that [Employee First Name and Last Name] is currently employed by [Company Name]. 

[Mr or Ms Employee Last Name] is employed in the role of [Job Title] and started employment with [Company Name] in [Year]. [Mr or Ms Employee Last Name] is compensated [Salary Plus Bonus] per year.

Don't hesitate to contact me at [Email or Phone or Address] if you have any questions.

Best regards,

[Your Name]

[Your Job Title]

[Your Company Name]

[Signature] 

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