We all know that paperwork can be a headache for HR managers and business owners, but few documents are as important as a properly crafted letter of employment.
In Australia and New Zealand, where housing markets are competitive and immigration processes stringent, these letters carry particular significance. They're not just formalities – they're official documents that can make or break important life decisions for your employees.
So, without further ado, let's explore everything you need to know about creating the perfect letter of employment for any situation you might encounter in Australia and New Zealand. ⬇️
A letter of employment (also known as an employment verification letter or statement of service) is an official document issued by an employer that confirms an individual's employment status, job details, and often salary information.
These employment certification letters serve as formal verification of a person's employment history and are commonly requested for various purposes including:
In Australia and New Zealand, these documents follow specific formats and typically contain information aligned with local employment regulations. They're essentially your way of officially vouching for an employee's work history and current status with your organisation.
Letters of employment play a crucial role in both personal and professional contexts:
Employment verification letters often represent the key that unlocks important life milestones. For your team members, these letters might determine whether they can:
As an organisation, properly executed employment certification letters:
According to a 2024 survey by the Australian Banking Association, 68% of mortgage applications require employment verification, highlighting just how frequently these letters are needed.
Before diving into the specifics of crafting employment letters, it's essential to understand the legal framework governing these documents in Australia and New Zealand.
Under the Privacy Act 1988, Australian employers must adhere to the Australian Privacy Principles (APPs) when handling employee information. Key considerations include:
The Office of the Australian Information Commissioner reports that improper handling of employee information is among the top five privacy complaints received annually.
Similarly, New Zealand's updated Privacy Act 2020 sets strict requirements for handling personal information:
In Australia, the Fair Work Act 2009 establishes the framework for employment relationships, while New Zealand's Employment Relations Act 2000 serves a similar purpose. While neither act explicitly regulates employment verification letters, they do establish the broader context of employer responsibilities and accurate record-keeping.
Remember that providing false or misleading information in an employment letter could potentially breach various regulations and expose your organisation to liability. Always prioritise accuracy and transparency. ✔️
Employment letters come in several varieties, each serving a specific purpose. ⬇️
This is the most common type, confirming basic employment details such as:
These letters are typically brief and to the point, providing just the essential verification needed for general purposes.
For financial applications like mortgages or loans, a more detailed letter may be required that includes:
According to the New Zealand Bankers' Association, 73% of lenders require specific salary verification as part of their approval process.
For former employees, a statement of service provides:
For visa applications, both Australia and New Zealand require specialised employment verification that might include:
When preparing employment verification for visa purposes, consult Immigration New Zealand's Employer Requirements to make sure your documentation meets all necessary criteria.
These letters focus on income stability and employment duration to assure landlords and property managers of a tenant's ability to pay rent reliably.
No matter which type of letter you're creating, certain elements are essential for a professional and effective official confirmation of employment. Let's break down the key components:
Always use your official company letterhead that includes:
Using official letterhead instantly establishes the authenticity of the document and provides verification channels if the recipient needs to confirm its legitimacy.
Include:
A concise subject line immediately clarifies the purpose of the letter, such as:
Begin with a clear statement confirming the employment relationship:
"This letter confirms that [Employee Full Name] is currently employed by [Company Name] as a [Job Title] in our [Department] department. [Employee Name] has been employed with us since [Start Date]."
For former employees:
"This letter confirms that [Employee Full Name] was employed by [Company Name] from [Start Date] to [End Date] as a [Job Title] in our [Department] department."
Depending on the letter's purpose, include relevant details such as:
If authorised by the employee and relevant to the letter's purpose:
A 2024 study by the Australian HR Institute found that 82% of employees are comfortable with their employers sharing basic salary information for verification purposes, though consent remains essential.
For immigration purposes or detailed employment verification:
For mortgage or loan applications, lenders often want to know about employment stability:
End with a professional closing that offers additional help if needed:
"If you require any additional information regarding [Employee Name]'s employment, please don't hesitate to contact me at [Phone Number] or [Email Address]."
Finish with a complete signature section:
Below are customisable templates for different purposes. Remember to adapt these to your specific company requirements and the particular situation at hand.
[Company Letterhead with ABN]
[Company Address]
[Phone Number] | [Email Address]
[Date]
[Recipient Name/Organisation]
[Recipient Address]
RE: EMPLOYMENT VERIFICATION – [EMPLOYEE NAME]
To Whom It May Concern:
This letter confirms that [Employee Full Name] is currently employed by [Company Name] as a [Job Title] in our [Department] department. [Employee First Name] has been employed with our organisation since [Start Date].
[Employee First Name] is employed on a [full-time/part-time/casual] basis, working [number] hours per week. Their employment is [permanent/fixed-term until (date)/casual].
Should you require any additional information regarding [Employee First Name]'s employment, please contact me directly at [Phone Number] or [Email Address].
Yours sincerely,
[Signature]
[Your Full Name]
[Your Position]
[Company Name]
[Company Letterhead with ABN/NZBN]
[Company Address]
[Phone Number] | [Email Address]
[Date]
[Bank/Financial Institution Name]
[Bank Address]
RE: EMPLOYMENT AND INCOME VERIFICATION – [EMPLOYEE NAME]
To Whom It May Concern:
This letter confirms that [Employee Full Name] is employed by [Company Name] as a [Job Title] in our [Department] department. [Employee First Name] has been continuously employed with us since [Start Date].
Employment details:
- Employment status: [Permanent/Fixed-term/Casual]
- Employment type: [Full-time/Part-time]
- Regular working hours: [Number] hours per [week/fortnight]
- Probationary period: [Completed/Not applicable]
Compensation details:
- Current annual salary: [Currency] [Amount]
- Payment frequency: [Weekly/Fortnightly/Monthly]
- Additional compensation: [Details of bonuses/commissions/allowances if applicable]
- Salary review schedule: [Annual/Biannual/as per employment agreement]
[Employee First Name] is a valued member of our team, and based on current circumstances, we expect their employment to continue for the foreseeable future.
If you require verification of this information or have additional questions, please contact me directly at [Phone Number] or [Email Address].
Sincerely,
[Signature]
[Your Full Name]
[Your Position]
[Company Name]
[Company Letterhead with NZBN]
[Company Address]
[Phone Number] | [Email Address]
[Date]
Immigration New Zealand
[Branch Address if known]
RE: EMPLOYMENT VERIFICATION FOR VISA APPLICATION – [EMPLOYEE NAME]
To Whom It May Concern:
This letter confirms that [Employee Full Name] (date of birth: [DOB]) is currently employed with [Company Name] as a [Job Title] within our [Department] department.
Employment details:
- Start date: [Start Date]
- Employment status: [Permanent/Fixed-term until (date)]
- Employment type: [Full-time/Part-time]
- Hours of work: [Number] hours per week
- Current annual salary: NZD [Amount]
- Location of employment: [Work location/address]
Key responsibilities:
- [List 3-5 main job responsibilities]
- [Include key skills utilized]
- [Mention level of responsibility]
Qualifications required for this role:
- [List qualifications/experience required]
- [Include any licenses or certifications]
[Company Name] is a [brief description of company, size, industry] operating in New Zealand since [Year]. We currently employ [number] staff members across our operations.
This position is ongoing, and we fully support [Employee First Name]'s visa application. If you require any additional information to process this application, please contact me directly at [Phone Number] or [Email Address].
Yours faithfully,
[Signature]
[Your Full Name]
[Your Position]
[Company Name]
[Company Letterhead]
[Company Address]
[Phone Number] | [Email Address]
[Date]
[Property Manager/Landlord]
[Address]
RE: EMPLOYMENT VERIFICATION FOR RENTAL APPLICATION – [EMPLOYEE NAME]
To Whom It May Concern:
This letter confirms that [Employee Full Name] is currently employed by [Company Name] as a [Job Title]. [Employee First Name] has been with our company since [Start Date].
Employment and income details:
- Employment status: [Permanent/Fixed-term/Casual]
- Employment type: [Full-time/Part-time]
- Hours per week: [Number]
- Current gross [weekly/fortnightly/annual] income: [Currency] [Amount]
Based on [his/her/their] current employment status, there is every expectation that [Employee First Name]'s employment will continue for the foreseeable future.
If you require any additional information regarding [Employee First Name]'s employment status, please feel free to contact me directly at [Phone Number] or [Email Address].
Regards,
[Signature]
[Your Full Name]
[Your Position]
[Company Name]
[Company Letterhead]
[Company Address]
[Phone Number] | [Email Address]
[Date]
To Whom It May Concern:
RE: STATEMENT OF SERVICE – [FORMER EMPLOYEE NAME]
This letter confirms that [Former Employee Full Name] was employed by [Company Name] from [Start Date] to [End Date].
During [his/her/their] employment with us, [Former Employee First Name] held the following position(s):
- [Job Title 1]: [Date range]
- [Job Title 2]: [Date range] (if applicable)
[Former Employee First Name] worked on a [full-time/part-time/casual] basis, with typical working hours of [number] per week.
[Optional positive statement about their contribution, if appropriate]
If you require any further information, please contact our HR department at [Phone Number] or [Email Address].
Yours sincerely,
[Signature]
[Your Full Name]
[Your Position]
[Company Name]
Follow these best practices to make sure your employment letters meet the highest standards and comply with local requirements 👇
The Australian Information Commissioner recommends implementing a formal consent process for all employment verifications to comply with APP 6, which regulates the use and disclosure of personal information.
For more information on Australian employer obligations regarding employment records, visit the Fair Work Australia Employment Records and Pay Slips official guidelines.
When providing verification for someone who no longer works with your organisation:
For employees still in their probationary period:
For non-permanent staff:
When verifying employment for someone currently on leave:
Behind every verification request is an employee with hopes and plans – whether they're buying their first home, starting a new life in a different country, or simply finding a place to live. Your careful attention to this process helps them move forward with confidence, knowing their employment status is properly documented and verified. 🙌
Need more guidance on HR documentation and compliance in Australia and New Zealand? We've got you covered! Explore the Subscribe-HR blog for a huge library of resources to improve and expand your HR practice.
Is it legal to include salary information in an employment verification letter?
Yes, with the employee's explicit consent. Both Australian and New Zealand privacy laws require employee permission before disclosing personal information like salary details.
How long should I retain copies of employment verification letters?
Best practice is to retain copies for at least 7 years in line with general record-keeping requirements in both Australia and New Zealand.
Do employment verification letters need to be notarised?
Generally no, but some specific purposes (particularly certain visa applications) might require notarisation. Check with the requesting party for their specific requirements.
Can I email an employment verification letter or must it be printed?
Electronic delivery is acceptable for most purposes, but ensure you're using secure transmission methods for confidential information. Some formal applications may still require printed letters on company letterhead.
Who should sign employment verification letters?
Ideally, letters should be signed by someone with direct knowledge of the employee's work, such as a direct supervisor, HR manager, or company director, depending on company policy and the letter's purpose.
What if an employee requests verification for a job they're applying to while still employed with us?
Handle this sensitively and confidentially. Confirm exactly what information the employee wants shared, obtain proper consent, and maintain strict confidentiality about the verification request.
Are there standard templates required by Australian or New Zealand government agencies?
Some agencies, particularly immigration departments, may have preferred formats or required information. Always check the specific requirements of the requesting organisation.