Employment verification in Canada: What HR needs to know

Issuing an employment verification letter can be a quick and easy task, but as any HR or payroll professional knows, those ‘quick’ one-off requests can quickly add up.

From ensuring accuracy to protecting employee privacy, a surprising amount of work goes into each letter, especially when managing requests manually. The good news? With the right HCM software solution, you can automate the entire process and deliver accurate employment verification letters in seconds.

In this post, we’ll cover everything you need to know about employment verification letters in Canada, including when they’re needed, what to include, and how to simplify the process for your team.

What is an Employment Verification Letter?

An employment verification letter—sometimes called a proof of employment letter or employment confirmation letter—is an official document issued by an employer confirming an individual’s employment details.

It’s typically requested by third parties such as:

Banks or mortgage lenders
Landlords or property managers
Government agencies
Immigration offices

The letter provides proof that the employee works for your organization, along with key details like job title, employment status, and dates of employment. In some cases, it may also include salary information, but only with the employee’s consent.

When is an Employment Verification Letter necessary in Canada?

In Canada, employees might need an employment verification letter for several reasons, including:

Applying for a mortgage or loan: Financial institutions often require proof of stable income.
Rental applications: Landlords may ask for confirmation of employment to verify the ability to pay rent.
Immigration or visa applications: Government agencies use employment letters to confirm an applicant’s work history.
Childcare subsidy or benefits applications: Some provincial programs request proof of income or employment.
Background checks: Employers may verify employment history for new hires.

Regardless of the reason, any information shared should be accurate, up to date, and compliant with Canadian privacy laws like the Personal Information Protection and Electronic Documents Act (PIPEDA) or relevant provincial legislation, such as Alberta’s Personal Information Protection Act (PIPA) or Quebec’s Act Respecting the Protection of Personal Information in the Private Sector.

What should an Employment Verification Letter include?

While every organization has its own format, a Canadian employment verification letter generally includes:

Employer information: Company name, address, and contact details.
Employee information: Full name and job title.
Employment details: Start date and end date, if applicable.
Employment type: Full-time, part-time, contract, or temporary.
Salary or wage details (optional): Only include with employee consent.
Verification statement: A short line confirming the accuracy of the information.
Authorized signature: From HR, payroll, or another approved representative.

💡 Tip: Always ensure the details match what’s in your HR or payroll system. Even small discrepancies can cause issues for employees applying for loans or immigration programs.

The process of issuing an Employment Verification Letter

Manually

Traditionally, this process is handled manually through HR or payroll. Here’s what that might look like:

The employee emails HR requesting a letter.
HR verifies employment details in multiple systems.
Someone drafts the letter, reviews it, and sends it to the employee.

It’s a routine process, but it can easily take a few days, especially when requests pile up or key data is scattered across systems. Each manual step also adds room for delays and errors.

Automated (with HCM software)

Now, imagine if the entire process took just a few clicks. With an HCM solution like Avanti, employees can simply log in to their self-service portal, request a letter, and receive it in minutes.

Here’s how it works:

The employee clicks “Request Employment Verification Letter.”
The system automatically pulls verified data from HR and payroll records.
A professional, branded letter is generated instantly.
The employee receives it securely in their inbox or portal—no emails, no wait time.

This approach not only saves valuable HR time but also improves accuracy, compliance, and employee experience. Plus, it standardizes the letter’s format across your organization.

Important considerations for employment verification

When issuing employment verification letters in Canada, HR and payroll professionals should keep the following best practices in mind:

Get consent: Only release details that an employee has authorized, especially salary information.
Maintain accuracy: Pull information directly from validated HR or payroll records.
Protect privacy: Deliver letters securely through your HR portal or encrypted email.
Follow legislation: Stay compliant with PIPEDA and relevant provincial privacy acts.
Keep records: Track who requested and received each letter for audit purposes.

Consistency and care go a long way toward protecting both the employee and the organization.

Free customizable Employment Verification Letter template

You can use this free template as a starting point for your own Canadian employment verification letters.

[Company Letterhead]

[Date]

To Whom It May Concern,

This letter confirms that [Employee Name] is employed with [Company Name] as a [Job Title].
[He/She/They] has been employed with us since [Start Date] and currently works on a [Full-time/Part-time/Contract] basis.

[Optional: Their current annual salary/hourly wage is $_____.]

If you have any questions or require additional information, please contact our HR department at [Email Address] or [Phone Number].

Sincerely,
[Name]
[Title]
[Company Name]
[Contact Information]

Want to make this process even easier?

With Avanti’s HCM system, you can automate the creation and delivery of employment verification letters, giving your employees what they need instantly while saving hours of HR admin time each month.

Employment Verification Letter FAQs

Is an employment verification letter the same as a reference letter?
No. A reference letter speaks to performance or character, while an employment verification letter simply confirms employment details.
Can employees request their own employment verification letter in Canada?
Yes. Employees can request their own letter from HR or, if your organization uses an HCM solution, directly through the employee self-service portal.
Should salary information be included?
Only include salary details with the employee’s consent and when required by the requesting organization.
How long does it take to get an employment verification letter?
Manual processes can take several business days. Automated systems can generate and deliver letters instantly.
Are digital employment verification letters valid in Canada?
Yes. PDF or electronically signed letters are widely accepted by Canadian banks, landlords, and government agencies.
Who can sign an employment verification letter?
Typically, HR or payroll professionals or an authorized company representative.
How should employment verification letters be stored?
Store them securely in your HR system and ensure you follow your organization’s data retention and privacy policies.

Final thoughts

Employment verification requests may seem small, but they represent an important moment of trust between your employees and your HR team. By automating the process with a modern HCM system, you can deliver fast, accurate, and secure letters, all while freeing up your team to focus on higher-value work.

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