Screening processes are integral to HR recruitment practices, ensuring that you hire the best talent. According to ASDReports, “the Asia Pacific employment screening services market is propagating at a CAGR of 9.37% from 2019-2027. India, China, Japan, Australia, South Korea and the Rest of Asia Pacific are considered for the market study.”
If you’re looking to facilitate your screening processes, work experience documentation via a certificate of employment letter and other verified documents helps.
Aside from helping HR leaders, this certificate also facilitates securing loans, getting approved for rentals, and qualifying for grants for employees. Keep reading to learn about the COE meaning and how this form can serve you.
What is a certificate of employment and who is eligible?
To answer your question of “What is COE?” and unpack the COE meaning, it’s a formal documentation of the working history of a current or past employee in your company.
The certificate of employment letter is typically short and to the point. It includes the employment details, such as the employer’s name and details, and the employee’s personal information such as employment dates and employment status.
Under the Department of Labor and Employment (DOLE), every employee is eligible to request for an employment certificate letter as and when required. They also have a right to an intermediary certificate if they request it.
There are exceptions when it comes to COE, meaning that some individuals aren’t eligible for a certificate of employment letter. These may be contractual and project-based workers, and workers whose employment term you’ve terminated with a legal or fair cause.
What information does a certificate of employment include?
With that understanding of the COE meaning, what is a COE composed of? There’s no standard format, but it should include the following details:
- Employer’s data: Such as company name, logo, contacts, and address and the employer’s name and contact information.
- Employee’s data: The employee’s first name, family name, date of birth, and place of origin.
- Employee’s curriculum in the company: A list of the positions, duties, and activities of the employee in the company and the start and termination of their employment term.
- Additional information: Additional details requested by the letter’s recipient (like the employee’s overall pay) should be included in the letter.
- Certificate-related details: The signatures of company authorities, the certificate issuance date, and the company stamp for verification.
What is the purpose of a certificate of employment?
Now, what is COE meant to achieve exactly? The purpose of this certificate is to authenticate any applicant’s data or verify data for past employees. To illustrate, you can use a certificate of employment letter:
To prove employment
What is COE if not proof of employment? An employee may request a COE, meaning that their employment in your company will be verified and that their work experience will qualify them for future positions. This way, future recruiters can fact-check their employment history.
For salary verification
What is COE able to prove about your employees’ finances? Future employers might want proof of your employee’s salary. Also, loan and mortgage providers, banks, and landlords might request a certificate of employment to verify their claims about their employment and salary. This way, they can assess their ability to make the required monthly payments.
Demonstrate length of service
The certificate of employment letter can also serve as a verification of the length of service for your current employees or potential hires. Their years of experience prove that they’re equipped for a certain position during a candidate assessment process.
When can employees request for a certificate of employment?
Employees may request for a COE under varying circumstances. However, here are some common examples when an employee may request for one. Understanding these situations allows you to better prepare the documents required by your employees:
Job applications
Job applications are some of the most common scenarios where employees will request for a certificate of employment letter as Applicants need to prove their work experience.
This step acts as a subtle background check on their job performance. It can happen during the final stage of recruitment, increasing the trust of recruiters in applicants.
Loan or credit card applications
An employee may request a certificate of employment letter from you because a loan provider or bank requested it, in which case you’ll need to add their current pay.
But what is COE going to do to help them secure a loan, get approved for a mortgage, or adjust their line of credit? An employee can present a COE to indicate their ability to make payments on time, and the claims they’ve made about their income sources and employment status are authenticated.
Visa applications
Most immigration offices require a certificate of employment letter. Your employees applying for an employment visa might request a COE to prove that they are legally employed to work in the country that they are applying for.
Furthermore, the COE is also a form of verification that the applicant has the needed funds to finance their stay in the country, and will likely not stay past the travel period they’ve declared because they’re committed to a workplace.
Renting an apartment
Landlords may require a COE, meaning it serves as confirmation that your employee has a job. What is COE going to prove to a landlord? It proves that they have an income source and can pay rent monthly. In that case, you may need to include your employee’s current pay in the certificate of employment letter.
Government Requirements
What is COE in the context of government paperwork? Government bodies can request a certificate of employment letter to verify the identity of your employee. For example, they might be applying for a governmental program, which requires a COE, meaning it acts as a governmental document for submission purposes.
Requirements for Obtaining a Certificate of Employment
What is COE going to cost employees in terms of requirements? Understanding these three requirements will help you procure a certificate of employment letter in time.
Employee request
It starts with a request from your employee. In a relatively small company, the person responsible for creating the certificate of employment letter could be an office manager, direct supervisor, or accountant. In a large company, the HR department typically handles these requests.
This request comes in the form of a letter, but what should it include? It should state that the employee needs a certificate of employment letter and the reason for the request. It should also detail all the information that should be included within the certificate. Finally, they may add a specific date by which they need the certificate of employment letter.
Employer verification
Now it's your turn to verify the certificate of employment letter. After all, what is COE if not verified? HR professionals or employers may write it, and the signature of authorities will verify the work details listed about the employee in the COE, meaning that the document becomes legally binding.
Omni Tip: Information within the certificate of employment letter must be truthful and based on your employment record. The Department of Labor and Employment (DOLE) can take actions against companies that provide false information.
Processing time
What is COE going to require in terms of time? There’s no specific processing time for issuing a certificate of employment letter, meaning that it differs according to factors like your internal policies, and any issues related to the certificate of employment letter.
For example, companies based in the Philippines should refer to the DOLE Labor Advisory No. 06 Series of 2020, which states: “a Certificate of Employment be released by the employer within three (3) days from the time it was requested by the employee.”
Otherwise, your employee might state a timeframe for the issuance of their certificate of employment letter. This may be due to a work visa deadline or applying for an educational program by a certain date.
Examples of a Certificate of Employment for Employee
If you’re still confused about “What is COE?” or COE meaning, we have provided a free certificate of employment template to customize and cater to all your employee’s needs.
Download our free Certificate of Employment template!
Aside from that, here are two common examples of when a certificate of employment will be required by an employee:
For an Employer
In this example, the point of the letter is to verify your previous employee’s employment period, position and salary.
[COMPANY LOGO HERE]
CERTIFICATE OF EMPLOYMENT
This letter confirms that Rachel Tan was employed at NW Consulting Firm from 4 September 2022 till 21 March 2024, as an investment consultant with a monthly salary of SGD$ 5,000. She has displayed good work performance, a positive attitude towards the work environment, and great talent in handling clients.
If you require additional information or have any further questions, please contact me at 2437 7754 or reach me via email at s.liew@nwconsulting.com.
Sam Liew
Human Resources Manager
For a loan provider
When constructing a COE letter for your employees with the purpose of submitting it to a loan provider, it is crucial to include your employee’s start date and current salary to highlight their ability to repay the loan.
[COMPANY LOGO HERE]
CERTIFICATE OF EMPLOYMENT
This letter confirms that Chloe Wong is a current employee of Quick Fix Solutions as an office manager, with a monthly salary of ₱38,500. Ms. Wong has been employed in the company since July 2021.
If you require additional information or have any further questions, please contact me at 5333 8749 or reach me via email at rsim@quickfixsolutions.com.
Rudy Sim
Human Resources Manager
Enhance Employee Satisfaction with Omni
Whether you’re an employee or business owner in Philippines, Omni makes it easier than ever to support employees requesting a certificate of employment letter.
Our all-in-one employee database makes gathering the necessary data required to create the certificate of employment seamless and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for their certificate of employment request. A centralized document management solution and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.
Book a demo with our team to learn more about how Omni can enhance your employee satisfaction through streamlining your certificate of employment requests. Not ready for automation yet? Download our Certificate of Employment template now!
