What is an Employee Statement

An employee statement is a formal statement that establishes the details regarding the particular company’s employees. These are especially required during new recruitments made by the company. This step is necessary is generally issued to all employees so that they are familiarized with the internal functions of the company. The statement showcases the legal infrastructure of the company, the financial requirement to issue this kind of statement, the labor unions and their functions with regards to the employees as well as the different benefits that will be given to the employee.

The employee statement must be created keeping in mind about the individual employee that has been hired by the company. This statement, hence, requires careful detailing and should be structured in a simple and coherent manner. This will also be used in the future for reference and legal purposes. The main elements that are to be mentioned in the employee statement are:

  • The name of the company, the newly hired employee and the date of joining must be mentioned foremost in this statement.
  • The designation that will be occupied by the employee also needs to be stated.
  • The personal details of the employee should be furnished in the employee statement. This will include contact information, gender and date of birth of the employee. There might be companies that require finger prints and blood groups of the employee as well.
  • The yearly or monthly income of the employee should be clearly stated in the employee statement.
  • The cost of hiring the employee should also be highlighted.
  • The tax deductions and other service charges that may be deducted from the final income should be stated here as well.
  • The statement must be written in simple and understandable language and should not create any confusion for later.

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