What is a VOE letter?

A VOE or verification of employment letter is a document that proves an employee works for a company.

Although this letter is not legally required, it is a common method to verify employment status of an individual, and necessary for many aspects of life.

A VOE is a sensitive document; therefore, you should be careful when sharing confidential and personal information with third parties.

Including inaccurate information can negatively affect an employee’s chances of getting a loan, renting a house, or obtaining a job.

This article will explain what a VOE letter is, why it’s used and how to avoid simple mistakes when composing one.

We also share how a document management system can streamline the creation of HR docs.

Who requests a verification of employment (VOE) letter?

A verification of employment letter is a document that confirms or denies that an individual works or has worked for a company.

It is also known as a letter of employment or proof of employment letter.

Employees often need this document when seeking future employment, obtaining a mortgage, or filling out a visa application.

It is used to verify they have a stable income and are trustworthy to provide a service or request.

An employment verification request is sent from an employee or a third party, such as banks, landlords, government agencies, or prospective employers.

Typically it is part of a background check and is used as one of several methods to verify employment. In some cases, a simple phone call can be enough to confirm the employment.

However, when it comes to governmental agencies, they often insist on a formal letter from an employer as their standard requirement.

What is an employment verification letter used for?

Loan application

Financial institutions need to be assured that a borrower can afford a requested amount of money and make payments on time.

Verification of employment assures the lender that an applicant provided accurate information in their financial documents beforehand.

Lease and rental application 

While property owners consider financial documents as verification, a landlord may nonetheless want to verify your job title from your employer directly to ensure that you can pay rent, deposit, and maintenance. 

Job application

A recruiter may ask for a VOE document to confirm the details on your resume and determine if you’re qualified for a role, and have worked where you say you have, and in what capacity.

Visa application

A VOE letter proves that an applicant is employed in the home country and intends to return home after a trip to the destination country.

The doc also confirms that an applicant is financially stable.

Immigration application

Government institutions oftentimes require individuals to prove their employment and income before they process papers.

The details may include salary, job title, and duration of employment.

Who can write an employment verification letter?

In most cases, only an employer is eligible to write a VOE letter. Normally, this task is handled by HR managers, as they keep most of the employee-related information.

If your company lacks a human resources department, a manager or business owner can undertake this responsibility instead.

An employee can also write a VOE letter, but they need to have it reviewed and signed by the employer to validate the information. Without it, the letter won’t be considered valid.

What should a VOE letter include?

VOE letter should include only details requested by an employee or a third party. Any information provided will be considered as contributing to straightforward verification. 

 A typical VOE letter includes:

• Personal information. Include an employee’s name and address.
• Employment history. Indicate when an individual was/is employed, and their job title and role. Include information about annual salary and dates of employment.
• Employment status. Specify if an individual worked as a full-time, part-time, or temporary employee.
• Purpose of the letter. State that you verify the employment status for the employee.
• Signature. Sign the letter with an employer or authorized representative’s name and title.
• Contact information. Write down a phone number and email address of the employer or company representative who signed a letter. 

If you want to share more details about an employee — for example, an employee performance review, use a reference letter or letter of recommendation.

When composing a VOE letter, use a standard business letter format and keep it short — a typical letter is up to 100 words.

To be safe, check with your legal department on what information you can share with third parties.

Get written consent from an employee agreeing to share their confidential data. 

Streamline the process of creating HR documents with PandaDoc

Creation of verification of employment letters is a time-sensitive task, one that often takes place while still handling other HR duties.

PandaDoc offers a free employment verification letter template so you don’t have to create a letter from scratch.

Our library of templates includes other professional-looking HR templates you can leverage and shift your focus to your long-term tasks.

Besides that, you can take the advantage of PandaDoc’s document management system that was created to make the life of HR easier.

Keep documents in a centralized place and easily search for them.

Automate repetitive tasks using customized workflows and get real-time notifications to be in the loop on the latest updates.

To learn more about PandaDoc’s  features, sign up for a free trial or schedule a 15 minute demo right away.