With LawDepot’s Proof of Employment or Income Letter template, you can select and customize the kind of verification letter that best suits your needs.
Key components of a Proof of Income/Employment Letter
The key elements of a Proof of Income or Proof of Employment Letter include:
- Employee or income earner’s name and contact information
- Employer’s name and contact information when applicable
- Details about the position or income, whichever applies (e.g., hours, title, and salary)
- Recipient’s details (e.g., a new or prospective employer, immigration services, or landlord)
- Signature and contact details of who is verifying employment or income
LawDepot’s customizable template allows you to choose if your letter is to prove employment, income, or both, and prompts you to include what is needed for your letter’s purpose.
What not to include in your letter
Include only the essential information needed to verify employment or income. You should not include details like:
- Social Insurance Number, as this is sensitive personal information
- Banking information (e.g., bank account number or direct deposit details)
- Performance reviews that should be used for references when it is requested
- Reasons for the termination or resignation of a former employee
- Medical information, such as sick leave or disabilities
If you’re unsure about information to include or disclose, consult a lawyer for the best business and privacy measures.
Common uses in Canada
Employees may need proof of their employment or income for situations and applications with significant financial requirements, including the following:
- Mortgage or loan applications: Financial institutions such as banks or mortgage lenders may request income or employment verification.
- Rental or lease applications: Landlords may request proof of income during the application process to ensure a tenant can meet their payment obligations.
- Immigration or visa applications: Both applicants or people looking to sponsor family may include an income verification letter with their other supporting documents during the application process.
- Employment applications: Prospective employers may request verification of a candidate's current or former employment during the hiring process.
Additional needs for proof of employment or income can include, but are not limited to, purchasing insurance, financing a car, background checks, or applying for benefits or government assistance.
Important considerations for Proof of Employment Letters
It’s important for employers providing Proof of Employment or Income Letters to comply with Canadian privacy laws. In Canada, these laws include the Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial and territorial laws similar to PIPEDA.
Each province or territory will also have its own framework of privacy rules, restrictions, and protections for what income history or personal information a prospective employer can request. For example, the British Columbia Pay Transparency Act prohibits employers from seeking an applicant's pay history by any means unless the information is publicly accessible.
Additionally, anyone requesting verification must comply with laws applicable to their role or industry. For example, landlords can request proof of income, but must comply with federal, provincial, or territorial privacy laws. Additionally, some provinces, such as Alberta and Manitoba, prohibit discrimination based on source of income.
Always check what information is allowed to be shared or requested in a Proof of Employment or Income Letter.
How to write a Proof of Employment or Income Letter
Have your Proof of Employment or Income Letter in minutes with LawDepot’s easy-to-use questionnaire. We’ll prompt you to include the details needed to write a valid, tailored letter.
Select the type of letter you need and complete the following steps:
1. Determine the purpose of the letter
Select what the letter is for (e.g., loan application, lease application, or immigration or visa purposes). This helps customize your letter to fit your needs.
Then add your or the employer's details to indicate who is issuing the verification letter.
2. Add the employment or income information
Depending on your needs, you’ll then add either the employment information (e.g., work hours, start date, and job title) or the compensation (e.g., salary, commission, and other sources of income).
If you are writing a letter to prove employment, you may include compensation if required, and you have the employee’s consent.
3. Name the recipient
Continue by specifying who is receiving the verification letter. This can include their name, company name, and address. If you don’t know the recipient’s name, the template will use "To Whom It May Concern" as its greeting or salutation.
If the recipient is an employee’s new or prospective employer, check your provincial or territorial laws to see whether they restrict employers from requesting salary history.
4. Finalize your letter
If it’s applicable, you can add additional details to your letter. For example, if you’re an employer, you can add details about the employee’s character and strengths at work. Or you can name supporting documents as part of your proof of income.
If you’re writing a letter to verify employment, add the name and contact details of the person who’ll be signing the letter. The person signing the letter should be familiar with, or have access to, the employee’s personnel files in case the recipient contacts them with questions or requests further information.
Proof of Employment Letter FAQs
