Letter Of Employment Template: Essential Australian Guide

Need to confirm someone’s job details for a bank, visa application or rental? A simple, accurate Letter of Employment (sometimes called a “proof of employment” or “employment verification letter”) can save time and prevent back-and-forth with third parties.

In Australia, there’s no one official format, but there are best‑practice inclusions and legal considerations to get right. In this guide, we’ll explain what a Letter of Employment is, when to use one, what it must include, and provide a practical template you can adapt for your business.

We’ll also cover compliance tips under Australian law so you can issue letters quickly, confidently and consistently.

What Is A Letter Of Employment (And When Do You Need One)?

A Letter of Employment is a short document issued by an employer confirming an individual’s current or recent employment status and key details. Third parties often request it to assess income and job stability.

Typical scenarios include:

• Home loan or rental applications requesting proof of employment and salary.
• Visa or migration processes asking for employer verification.
• Car finance or other credit applications requiring income confirmation.
• Government or professional accreditation requiring confirmation of role.

It’s not the same as an employment or service certificate (which is usually issued at the end of employment) or a separation certificate (for Services Australia). A Letter of Employment is usually a simple, on-request confirmation during employment.

What Should A Letter Of Employment Include?

The aim is clarity and accuracy. Keep it short and only include details you’re comfortable verifying.

Core Elements To Include

• Employer details: Legal entity name, ABN, address, and contact details on letterhead.
• Employee details: Full name and (optionally) employee ID.
• Employment status: Casual, part-time or full-time, including whether the role is permanent or fixed-term.
• Position title and department: The role the employee performs.
• Employment dates: Start date; end date only if employment has ended or is fixed-term.
• Hours of work: Ordinary hours per week or “variable” if hours fluctuate (e.g. casuals).
• Remuneration: Base salary or hourly rate, plus superannuation status; avoid stating bonuses unless you’re comfortable verifying them and they are contractual.
• Purpose (optional): A brief line if requested (e.g. “provided at the employee’s request to support a home loan application”).
• Authorised signatory: Name, title and signature of a person with authority to confirm employment details.
• Date: The date the letter is issued, and a validity period if appropriate (e.g. “valid for 60 days”).

Optional Inclusions (Use With Care)

• Probation status: Only if specifically requested and appropriate to disclose.
• Tenure confirmation: A general statement like “employment is ongoing, subject to standard policies and performance.” Avoid guarantees of future employment.
• Leave balances: Typically excluded unless the employee asks and there’s a good reason to include it.
• Contact method for verification: A general HR email or phone line rather than a personal number.

If your employee’s letter relies on terms from their Employment Contract (for example, fixed-term end dates or guaranteed hours), check the contract before you confirm those points.

How To Write And Issue A Letter Of Employment (Step By Step)

1) Confirm The Request And Purpose

Ask the employee what the letter is for (bank, rental, visa, etc.) and what fields the third party expects. This helps you include the essentials without oversharing.

2) Verify The Employee’s Current Details

Check your HRIS or payroll records for up‑to‑date status, hours and pay rate. If your workplace policies require written employee consent before sharing remuneration, obtain that consent first.

3) Draft On Official Letterhead

Use your company letterhead and include your ABN. Keep the tone factual and neutral. Avoid commentary on performance or personal matters.

4) Keep It Consistent With Contracts And Policies

Cross-check key facts against the Employment Contract, relevant award or enterprise agreement, and internal policies. If the employee is on notice or has a variable roster, choose wording that reflects this accurately. For notice-related content, align with your approach to employment notice periods in Australia.

5) Sign And Date Properly

Have an authorised representative sign. If you’re signing electronically, make sure your process meets the legal requirements for signing documents in Australia.

6) Issue Securely And Store A Copy

Send the PDF via secure channels (or directly to the third party with the employee’s consent). Keep a copy on file in line with your Privacy Policy and retention procedures.

Legal And HR Compliance Tips For Australian Employers

While a Letter of Employment is a simple document, a few Australian law considerations matter.

Accuracy And Misrepresentation

Stick to verifiable facts (e.g. current base salary and status). Avoid predictions (“guaranteed promotion”) or assurances about future employment. Inaccurate letters can create disputes or complaints.

Privacy And Consent

Personal information (like salary) is protected under Australian privacy principles. Make sure you have a lawful basis to disclose it and respect your internal processes. Refer back to your Privacy Policy and data handling procedures when sharing or storing these letters.

Anti-Discrimination

Do not include sensitive information (health, family status, age, religion) unless strictly required and appropriate. Keep the letter neutral and job‑related to avoid discrimination risks.

Employment Status And Awards

Be clear about whether the person is a casual, part-time, full-time or fixed-term employee. If the role is subject to a modern award or enterprise agreement, you don’t need to name it in the letter, but your statements should align with the terms actually applying to the role.

Probation, Notice And Ending Employment

If the employee is on probation, you can state that fact neutrally if requested. If the employment is ending, a Letter of Employment is not a substitute for end‑of‑employment documents like a certificate of employment or a separation certificate.

Authorisation And Governance

Have a standard process for who can sign and issue these letters. Consistency reduces errors and speeds up turnaround.

Letter Of Employment Template (Copy, Paste And Tailor)

Use the following template as a starting point. Tailor it to your business and the specific request. Replace bracketed text with your details and remove any optional lines that do not apply.

 (ABN )

 |  | 

To Whom It May Concern,

Re: Letter of Employment - 

This letter confirms that  is employed by  in the position of .

Employment details are as follows:
• Employment Type: 
• Start Date: 
• Ordinary Hours:  / 
• Remuneration:  per annum plus superannuation] 
  OR  plus applicable casual loading and superannuation]
• Work Location:  /  (optional)

This letter has been provided at the request of the employee for the purpose of . 
No assurance is given regarding the continuation of employment beyond the terms of our policies and relevant employment agreements.

If you require further confirmation, please contact our HR team at .

Yours faithfully,

For and on behalf of 

Tip: Keep a few variants of this template saved (e.g. casual vs permanent, hourly vs salaried) so your HR team can respond quickly and consistently.

Best Practice: Make Letters Part Of Your HR Toolkit

Letters of Employment become much easier when your HR documents are in order. Start with strong foundations:

• Employment Contract: Sets out role, hours, pay and terms so you can confidently verify facts in any letter.
• Workplace Policy suite: Clarifies who can issue letters, privacy rules and approvals.
• Staff Handbook: Gives employees a clear channel to request letters and understand processing times.
• Privacy Policy: Explains how you handle personal information (including verification letters) and aligns with internal retention practices.

If you need to reference timeframes or processing cut‑offs in your policy, using clear concepts like what counts as a Business Day helps set expectations.

Common Mistakes To Avoid

• Over‑promising: Avoid guarantees about future employment, promotions or pay rises.
• Disclosing too much: Stick to the essentials (role, status, dates, pay). Leave out personal or sensitive information.
• Inconsistency with records: Cross‑check payroll, agreements and status before you sign.
• Wrong signatory: Ensure only authorised representatives sign on behalf of the business.
• Outdated templates: Update templates when your policies or standard remuneration formats change.
• Unclear remuneration: State if the figure includes or excludes superannuation; avoid ambiguity around loadings or allowances unless required.

Key Takeaways

• A Letter of Employment confirms key job facts for banks, agents and other third parties; keep it short, accurate and on letterhead.
• Include the essentials: employer details, employment status, role, dates, hours and remuneration, plus an authorised signature and date.
• Respect privacy and anti‑discrimination rules; only disclose information you’re permitted to share and that’s relevant to the request.
• Align letters with your Employment Contract, internal policies and actual payroll records to avoid discrepancies.
• Build a simple HR process and reusable templates so you can issue letters quickly and consistently.
• Use appropriate end‑of‑employment documents (like a certificate of employment or separation certificate) when employment ends.

If you’d like tailored help preparing a Letter of Employment template or tightening your HR documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.