How to Write Letter of Employment Confirmation by Industry
Offer of Employment Letters
Some letters of employment are used at part of an offer package - in this instance they are sometimes called offer letters. Offer letters usually state the title of the position being offered, as well as rate of pay, work schedule, vacation time and other benefits. An offer letter or letter of offer contains much more information that letters certifying employment for other purposes.
Education Letter of Employment
Students working towards charter status with the Chartered Financial Analyst (CFA) Institute are required to have 48 months of involved, acceptable professional experience with investment making decisions. These students require letters of reference and letters of employment in order to demonstrate that they have attained the required field work experience.
A letter of employment for a hopeful CFA applicant is very much different from the letter of employment a prospective landlord or mortgage company would expect. It is common sense that a letter verifying the employment experience of a CFA student should emphasize their work experience and position title more than their salary or pay schedule. In fact, letters for CFA applicants and others used to satisfy educational requirements need not mention salary, pay schedule, pay method or any other unrelated information.
Tenant Letter of Employment
Landlords who ask prospective tenants for letters of employment tend to demand more information than those who ask for educational requirements. Unfortunately, many tenants have a habit of exaggerating their work title and the amount of money that they make, in hopes of swaying a landlord.
Many landlords combat this by insisting that tenants provide letters of employment before allowing them to rent or lease an apartment, house or other property. They are especially interested in a potential tenant's job title, their salary and when they get paid.
Mortgage Letter of Employment
Similar to landlords asking tenants for letters of employment, mortgage companies usually insist on seeing a letter of employment for any perspective mortgage borrowers. Mortgage company representatives are well-known for calling employers to verify data contained in letters of employment.
Mortgage company representatives are especially interested in the job title of employees, their salary, their pay dates and the method by which they get paid. Mortgage companies may also seek statements from employers regarding the stability of the employee's employment outlook, the outlook for business conditions for the employer and the employee's work performance.
Any release of personal information in a letter of employment should first be consented to, in writing, by the employee. Documents detailing this consent should be stored by issuing employers. Employers who release personal information and do not document employee consent may face challenges later on.
Letter of Employment for Licensing Authorities
It is common for taxi-cab drivers to be required to present letters of employment or letters of potential employment by a licensed taxi-cab owner, among various other requirements, before being granted a taxi-cab driver's license.
These letters include the name of the licensed taxi-cab owner, their address and a confirmation that the driver has been offered a position as a taxi-cab driver. These letters do not usually include non-pertinent information about salary or pay schedule. Other types of licensing require letters of employment as well. In most cases stockbroker's licenses must be sponsored by a licensed firm who must provide letters confirming employment to regulatory authorities.
Letters of Employment for Other Lenders
Other types of lenders, such as auto financing and other consumer credit companies may ask borrowers to provide letters of employment. Those lending money, particularly by way of unsecured loans, are very interested in learning and confirming borrowers' occupations, salaries, pay schedules and pay methods. They are also interested in confirming the address of borrowers for repossession purposes.
Employees will generally know what information needs to be included in letters of employment for loans they are applying for. Work with employees to provide a letter of employment that meets their needs. Ask employees to sign a release indicating that they specifically requested the employer release personal information in a letter of employment.
Letters of Employment for Professional Associations
Many professional associations require members to be actively employed. Certified Energy Manager applicants are required to present a letter of employment that details their title, duties and work experience. Other professional organizations have similar requirements for members. Letters of reference and letters of employment are sometimes used interchangeably for educational and professional association admission purposes.
Conclusion: Letters Confirming Employment
Business owners, managers and human resources representatives are commonly asked to provide employees with letters confirming employment. These letters are written by an official representative of the employer and confirm that an individual is employed in a particular position, how long they have been employed in that position, how much they earn, how often they are paid, the stability of the company and of the employee's employment and an evaluation of the employee's performance.
Asking employees to provide written and signed guidance before issuing letters confirming employment is a good business practice. Never issue letters of employment on the direction of anyone but the employee themselves. There are unscrupulous individuals who may attempt to socially engineer companies and trick representatives into issuing letters of employment containing personal information to which they are not entitled to view.
Issuing letters of employment is a good business practice that can improve the quality of life of employees. More than that, it fosters an environment of mutual collaboration, respect and trust. An employee who owns a house secured with a mortgage that was obtained in part due to a letter of employment from their employer will tend to be more trustworthy and reliable. Issuing letters of employment sends a message to employees that their contribution is valued and respected.