How To Write A Letter Of Employment In Australia (Template + Legal Checklist)

At some point, one of your team members will ask you for a letter of employment - sometimes called an employment verification letter or employment confirmation letter. They might need it for a rental application, home loan, visa process, childcare enrolment, or simply to confirm their income and role.

As a small business owner, it’s tempting to dash off a quick note and send it through. But because this document is often relied on by banks, landlords and government bodies, it’s worth getting right. A poorly drafted letter can create misunderstandings, accidentally disclose sensitive information, or conflict with what’s in your employment paperwork.

Below, we’ll walk you through what a letter of employment in Australia typically includes, when you should issue one, a practical template you can copy, and a legal checklist to help you avoid common pitfalls.

What Is a Letter of Employment in Australia?

A letter of employment in Australia is a short written confirmation from you (the employer) that a person is employed by your business, and it usually includes basic information about their role and employment status.

It’s important to keep in mind:

• It’s not the same thing as an employment contract. Your employment contract sets the legal terms of employment. The letter of employment is usually just a snapshot confirmation for a third party.
• It’s not necessarily an “offer letter”. An offer letter is used before employment starts, while an employment verification letter is used during employment (or sometimes after, in the form of a service letter).

If you’re onboarding new staff and want the actual legal terms documented properly, it’s generally better to rely on a tailored Employment Contract rather than trying to make a “letter” do the heavy lifting.

Is A Letter of Employment Legally Binding?

Usually, it isn’t intended to be. But it can still create legal risk.

Even if you don’t intend it to operate like a contract, a letter of employment can create issues if it:

• includes promises about guaranteed hours, ongoing employment, pay increases, or promotions
• states terms that contradict the employment contract
• contains inaccurate statements that a third party relies on (for example, where a lender, landlord or agency makes decisions based on what you’ve written)

This is why the best approach is to keep the letter factual, limited in scope, and consistent with your existing employment documents.

When Do Small Businesses Need to Provide a Letter of Employment?

In practice, small businesses are most commonly asked for a letter of employment in Australia when an employee needs third-party verification.

Common scenarios include:

• Rental applications: A real estate agent may want confirmation of the employee’s job and income.
• Home loans and personal finance: A bank or broker may request confirmation of employment type (full-time/part-time/casual) and salary.
• Visa or immigration processes: Some employees may require proof of employment or duties as part of their application. (This is general employment confirmation only - it’s not migration advice.)
• Government benefits or childcare: Proof of employment can be required for eligibility or subsidy assessments.
• Internal HR needs: You might provide a confirmation letter after probation, or when an employee changes role/title.

Do You Have to Provide One?

There isn’t a single general law in Australia that forces every employer to provide an employment verification letter on request in all circumstances. However, many employers do provide them as a reasonable workplace practice.

Also, some modern awards, enterprise agreements, and workplace policies may have record-keeping or employment information requirements. And as a practical matter, refusing a reasonable request can create unnecessary friction in your employment relationship.

If the request is unusual (for example, they want you to “guarantee” future income), it’s sensible to pause and provide a more limited factual letter instead.

What Should a Letter of Employment Include? (Employer Checklist)

A strong letter of employment should be brief, factual, and tailored to the purpose of the request. Before you write anything, it’s worth asking: “What does the employee need this letter for?” (e.g. a bank versus a landlord may ask for different details.)

In most cases, include the following core details:

• Your business details: legal entity name, trading name (if relevant), ABN (optional but often helpful), address
• Date of the letter
• Employee’s full name (as used in payroll records)
• Employment start date
• Position title (and a short description of duties if necessary)
• Employment type: full-time, part-time, casual (and fixed-term if applicable)
• Work hours: ordinary hours (or a reasonable range if hours vary)
• Remuneration: salary, hourly rate, or typical earnings (be careful with variability)
• Employment status: confirm they are currently employed (or confirm end date if required)
• Contact details for the person signing (so the recipient can verify)

What You Should Usually Avoid Including

To reduce risk, you’ll generally want to avoid including:

• Opinions about performance (“excellent employee”, “high performer”) unless you have a specific reason and are comfortable standing by it
• Medical information or personal circumstances
• Disciplinary history
• Predictions or guarantees (“they will be employed for the next 2 years”)
• Anything inconsistent with the contract, payslips, or payroll records

If you also need to provide an official employment summary for the employee’s records, a Certificate of Employment can be a better fit than a highly customised verification letter.

Practical Letter of Employment Template (Copy/Paste)

Below is a practical letter of employment template for Australia that you can adapt. Keep it on your business letterhead where possible, and only include details you can confidently verify from payroll and HR records.

ABN: 
Address: 
Phone: 
Email: 

To Whom It May Concern / 

Re: Employment Confirmation - 

This letter is to confirm that  (DOB: ) is employed by  as a .

 commenced employment on  and is currently employed on a  basis.

Ordinary hours of work: .

Remuneration: .

Please contact  on  or  if you require any further confirmation.

Yours sincerely,

For and on behalf of 

Who Should Sign the Letter?

Ideally, the letter should be signed by someone authorised to speak on behalf of the employer (for example, the director, business owner, payroll manager, or HR manager).

If you want to formalise who can sign certain documents for your business (especially as you grow), it can help to put an internal delegation in place using a letter of authority.

Can You Send It By Email?

Often yes - recipients commonly accept PDF letters emailed from a work email address. However, some banks or agencies may ask for an original signature, a scanned signed copy, or further verification.

If you do send it by email, keep a copy of what was sent (including attachments), and ensure the content matches your HR records.

Legal Risks and Compliance Checklist for Employers

A letter of employment seems simple, but there are a few legal and compliance issues worth checking before you hit send - especially because third parties may rely on it when making financial or housing decisions.

1. Accuracy and Record-Keeping

The biggest risk is unintentionally providing incorrect information. Even small errors (wrong start date, wrong employment type, overstated earnings) can cause problems for your employee and create reputational and legal risk for your business.

Before issuing the letter, cross-check:

• the employment contract and any variations
• recent payslips and payroll settings
• rosters (if hours are variable)

If the employee is casual, be careful about how you describe “regular hours” - casual work can be variable, and describing it like a permanent arrangement may create confusion.

2. Avoid Creating Unintended Promises

Try to keep the letter factual and present-tense. If you include forward-looking statements, you may accidentally imply guaranteed ongoing work.

Instead of:

• “They will continue to be employed indefinitely.”

Use something like:

• “They are currently employed on a basis.”

If you’re ever unsure whether a written statement could be treated like a promise, it’s worth understanding what makes a contract legally binding - because sometimes “informal” documents can still create enforceable expectations, or be relied on in other legal claims.

3. Privacy and Confidentiality

Employment letters often include personal information (like income and employment status). As a general rule, only disclose what the employee has asked you to disclose, and only to the recipient they nominate.

Privacy obligations can vary depending on your circumstances. For example, some small businesses may not be covered by the Australian Privacy Principles under the Privacy Act 1988 (Cth), but confidentiality obligations and good privacy practices are still important - particularly when dealing with sensitive employment information.

Good privacy habits for employment letters include:

• getting the request in writing (even an email is fine)
• confirming exactly who the letter is addressed to
• limiting the information to what’s necessary
• sending it securely (for example, to the employee to forward on, or directly to the recipient if the employee requests that)

If your business collects and handles personal information more broadly (employees, customers, website users), having a tailored Privacy Policy is often an important part of your overall compliance setup.

4. Make Sure You’re Not Contradicting Workplace Documents

Your letter of employment should align with the employee’s:

• employment contract and any amendments
• award coverage / classification (if applicable)
• position description (if you use them)
• current working arrangements (e.g. part-time hours)

Inconsistencies can create disputes later - not just with the employee, but also with third parties who rely on the letter.

5. Be Careful With Signatures and Authority

Many organisations will treat your signed letter as an official representation by the business.

To reduce risk:

• use a consistent signatory process (e.g. only owner/director/HR manager signs)
• include the signatory’s position title
• avoid “signing on behalf of someone” unless you’re authorised to do so

If you do need to sign on behalf of someone else in your organisation, it’s worth being clear on p.p. signatures so the document is executed properly and doesn’t create internal confusion about authority.

6. Consider Adding a “Limited Purpose” Line (When Appropriate)

Sometimes, you’ll be asked to include extra details you’re not comfortable providing (or that you simply can’t verify). In those cases, it can help to add a line that makes the scope clear, such as:

• “This letter is provided at the request of the employee for the purpose of confirming current employment details.”

This won’t fix inaccurate information (accuracy still matters), but it can help keep the letter focused and reduce the risk of the letter being treated like a broad guarantee.

Key Takeaways

• A letter of employment in Australia is usually a short, factual verification letter confirming a worker’s current role, employment type, and (sometimes) income and hours.
• Keep the letter consistent with payroll records and the employment contract, and avoid statements that could be read as guarantees of future employment.
• Only include information that’s necessary for the purpose, and remember that income and employment status are personal details that should be handled carefully.
• Use a clear internal process for who can issue and sign employment letters, and ensure the signatory is authorised to speak on behalf of the business.
• When in doubt, keep it simple: confirm current facts, provide a contact point for verification, and avoid adding opinions or predictions.

If you’d like help putting the right employment documents and processes in place (including templates that fit your situation), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.