Certificate of employment and earnings – why is it important?
What is a certificate of employment and who is it obligatory?
A certificate of employment and earnings is a document issued by the employer at the employee’s request. It is used to confirm the source and amount of income, which is necessary or useful in many situations. There are no specific provisions in the Labour Code indicating how to apply for a certificate of employment. According to its provisions, the issuance of the document by the employer is also not obligatory. It results only from his good will, except for one situation – when a certificate of earnings is necessary to determine the right to ZUS benefits (pension) and their amount. Then, in accordance with the Act on Retirement Pensions and Disability Pensions of the Social Insurance Fund, the employer is obliged to issue a document.
However, it is worth knowing that refusal to issue the certificate in other situations can be considered as acting to the detriment of the employee, and thus a breach of the obligation to care for the employee’s welfare.
Who issues a certificate of income and employment?
The employee asks the employer to issue a certificate of income or employment. In practice, however, it is usually its representative – a manager or, for example, an accountant. These may be persons authorized to issue this type of documents. However, the employee should make sure that the institution that asks for proof of employment will accept such a document. Sometimes it happens that the signature of the employer itself is also required.
Certificate of employment – contract of mandate and other forms of employment
And what about the certificate of employment in the case of a contract of mandate or a contract for specific work? In this case, the principal can also issue such a document. However, it is not obliged to do so under any regulations. Usually, however, there is no problem with obtaining a certificate. In the case of temporary employment, you should apply directly to the agency with which you have signed a contract for a certificate of employment and earnings. The Agency is also obliged to issue an employment certificate (confirmation of employment in a specified period) after the end of the contract (within 7 days).
When is a certificate of employment and earnings needed?
A certificate of income or employment may be needed by an employee in various situations. Most often, employees ask for a document to present to a financial institution (bank) when applying for a loan. It is needed for both mortgage loans and other types of loans and concluding leasing or installment agreements. A certificate of earnings is also often required by non-bank institutions granting loans. They are primarily used to calculate creditworthiness. Sometimes they can be replaced with a bank statement or statement, but this is usually only possible when borrowing smaller amounts and shorter loan periods. A certificate of employment from the employer gives the institution greater certainty that loan installments, purchase or leasing, will be repaid on time.
Certificates of employment and earnings are also often requested by employees who are parents. They may be required in a kindergarten or other type of care and education facility. In some places, there is a need to show income per family member or confirm that the parents work, so they cannot take care of the child on their own during the day.
In addition, it happens that a certificate of income or employment is required:
- when applying for social assistance, subsidies or subsidies,
- in court – e.g. in cases for granting, increasing or reducing maintenance,
- by a telecommunications operator, internet provider, etc. – before signing a contract for the provision of services,
- when applying for a scholarship or social assistance for a school-age child or a student,
- in the process of applying for a place in a student dormitory.
Therefore, it is quite an important type of document for employees.
What should a certificate of employment and earnings contain?
Preparing a certificate of employment and earnings should not be a problem for anyone. A template of such a document can be found on the Internet. It also happens that the institution requiring the submission of the certificate has its own form, which only needs to be supplemented with the company’s and employee’s data, signed and stamped with the company. Certainly, the content of the document must include:
- employee data: name, surname, PESEL number, series and number of ID card or passport,
- data of the company or institution issuing the certificate,
- information about current employment: most often the date of starting work, the name of the position held, the type of contract (whether it was concluded for a definite or indefinite period of time or a substitute),
- the amount of the employee’s earnings calculated on the basis of the salary for the last three months (gross),
- information about possible bankruptcy proceedings of the employer or bailiff enforcement of the employer.
Remember to include the stamp and signature of the employer – without it, the document will be invalid.
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