Learn the definition, functions, and how to detect a fake employment reference letter. A comprehensive guide for HR in the employee recruitment process.
An employment reference letter (also known as a "paklaring") is a crucial document in the hiring process, as it contains the candidate’s work history and professional integrity. Though it may seem simple, this document can be a deciding factor in whether or not a candidate gets hired. Companies must understand its importance to accurately assess the quality of potential hires. This article covers the meaning of the employment reference letter and why verifying its authenticity is essential.
Read the full explanation below!
What Is an Employment Reference Letter?
An employment reference letter is an official document issued by a company to confirm that an individual was previously employed there for a specific period.
This document includes essential details such as the employee’s name, last position held, duration of employment, and a general assessment of their performance. In some cases, the reason for the employment termination may also be included, although it is not mandatory.
Legally, companies are not required to provide this letter unless for specific cases like claiming Old Age Security (JHT) from BPJS Employment. However, in practice, many companies issue it as a gesture of professionalism and proper documentation.
Read Also: 7 Effective Ways to Overcome Labor Shortages
6 Functions of an Employment Reference Letter
For employers, understanding the role of a reference letter helps make more informed hiring decisions. Here are six key functions:
1. Verification of Work Experience
While many candidates list work experience on their resumes, this information needs validation. A reference letter serves as authentic proof of prior employment, roles held, and tenure, ensuring the accuracy of the claims made by applicants.
2. Mitigating Risk of Problematic Employees
This letter can indicate whether an employee left their previous job amicably or due to issues. Some letters may include reasons for departure, helping evaluate a candidate’s character and professionalism.
3. Insight Into Performance History
Although not always detailed, the letter may contain a general assessment of the employee’s work ethic. Employers can use this to gauge responsibility, communication skills, or workplace discipline.
4. Administrative Compliance
For partnerships with certain institutions—such as visa applications, work permits, or government projects—reference letters are often required. Having employees with complete documentation simplifies future administrative processes.
Read Also: 10 Effective Ways to Deal with Undisciplined Employees in the Workplace
5. Efficient Candidate Screening
The reference letter streamlines the selection process. It can serve as an initial screening tool before deeper interviews. If the document is missing or suspicious from the start, it’s easier to eliminate unsuitable candidates early.
6. Proof of Professional Conduct
Candidates with an official reference letter typically left their previous job in a formal, professional manner—reflecting respect for company procedures and good work ethics.
By using reference letters as part of the hiring process, companies can minimize the risk of bad hires and enhance a structured, objective screening system.
6 Characteristics of a Fake Employment Reference Letter
As job competition intensifies, some candidates may attempt to bypass hiring filters using fake documents, including reference letters. This poses a serious risk to workforce quality and internal credibility.
Here are six signs of a fake reference letter that HR professionals should watch out for:
1. Lack of Official Letterhead
An authentic reference letter should be printed on company letterhead, complete with logo, office address, and contact info. If it’s on blank paper or lacks identifying marks, the document’s authenticity is questionable.
2. Missing Signature and Stamp
Valid reference letters are always signed by an authorized party (typically an HR manager or director) and stamped with an official seal. Without these elements, the letter is likely invalid.
3. Unprofessional Format
Fake letters often appear sloppy. They may use informal language, contain many typos, or lack standard business formatting.
4. Inconsistent Information
If the details in the reference letter conflict with the candidate’s resume—like mismatched job titles or illogical employment durations—it's crucial to conduct further verification.
Read Also: 5 Strategies to Recruit High-Quality and Professional Employees
5. Unverifiable Company Information
Ensure that the company listed in the letter actually exists. Simple checks via online search, social media, or business directories can reveal whether the company is legitimate.
6. Excessive Praise
Letters that include exaggerated compliments, salary details, or over-the-top achievements may be red flags. Official reference letters are typically concise, objective, and to the point.
To reduce these risks, always contact the issuing company to confirm the letter’s validity. Don’t hesitate to ask for an HR contact number or perform additional background checks if necessary.
Verifying an employment reference letter is just one of many steps in the recruitment process. If a company wants to avoid administrative risks and focus on achieving the end goal of hiring ready-to-work and trustworthy employees, partnering with a workforce provider like SOS is the right solution.
Simplify Recruitment with Reliable Workforce Solutions from SOS
Verifying reference letters is just one of many steps in recruitment. If your company wants to reduce administrative burdens and focus on hiring ready-to-work, trustworthy employees, partnering with a workforce provider like SOS is the smart choice.
With SOS outsourcing services, your company can save time, costs, and energy in both recruitment and HR management—allowing your team to focus on core business growth while daily operations are handled by competent, professional workers.
Don’t let operational demands slow your business down. Contact SOS today and find the right talent to boost your company’s productivity and efficiency!
