Can I Issue an Address Proof Letter Using an Employee's Spouse's Address for a Loan?

Hi, I am working in an organization. My employee needs an address proof letter to avail a loan from the bank. As per the rule, I issued him a "To whom it may concern" certificate based on the address in our database, which he provided during his joining date. However, his loan was rejected because he resides in an area blacklisted by the bank's policy. He is seeking help from our end and requesting an address proof letter stating his wife's address.

Is it possible to issue a letter stating his wife's address?

Looking forward to your feedback.

Thanks.

Address Change Policy and Proof Requirements

As per the policy of the organization, the address submitted by the employee and further verified by the employer is considered the primary address of the employee. However, if he/she has changed the location, they may replace the existing address with a new one. In such a case, the employee must submit any of the following documents as proof of address:

1. Voter ID card or UID card mentioning the new address and the employee's name.
2. Public Sector Bank Account passbook showing the new address.
3. Driving license with the employee's name and new address.
4. Any certificates issued by government authorities.
5. An attested letter from a gazetted officer on the authority's letterhead.
6. Passport in the employee's name with the new address.

If the employee has not submitted any such certificate or document and wishes to avail services/loans using the wife/spouse's address, they will not be entitled to the service. The wife may be the nominee, but the benefits cannot be claimed in her name or address. Therefore, the employee must first submit a document in their name with the new address.

Thanks & Best Regards,

Vikas Ranjan

Handling Change of Address Requests

Take a request for "CHANGE OF ADDRESS" on behalf of the employee. You can update your database accordingly and keep that request for audit purposes.

Regards,
Bhupendra
[Phone Number Removed For Privacy Reasons]

The company is not competent to authenticate the address proof. This is the job of government agencies. There is no logic to issue a certificate in this regard on a company letterhead.

Anurag,

Why is there no logic? When an employee joins a company and needs address proof, where will he or she go? Is it easy to get the address proof from government bodies?

For your information, many organizations issue the certificate based on the employee's request, mentioning the purpose for which the letter is being issued. They also include a condition absolving their responsibility arising from the issuance of such certificates. This practice is prevalent across many organizations.

Pon

Authentication of Employee Details

A company can authenticate the following details for an employee:

• Employment with the company
• Earnings with the company
• Experiences/Working
• Legal compliances to be done on behalf of the employee

As there is no role of a company to certify proof of identity/residence, this is exclusively done by government agencies to issue:

• Voter ID card
• Unique ID
• Passport
• Driving license

Somewhere, the electricity bill/telephone bill is recognized as proof of residence.

Every executive should work by ensuring that the work done through them falls within their competencies.

You are right. "Many organizations are issuing the certificate based on the employee request mentioning the purpose for which the letter is being issued. They also put a condition of absolving their responsibility arising out of the issuance of such certificates. This practice is prevalent across many organizations."

This is because many organizations, e.g.,

• Telecom companies for the mobile/broadband connection
• Banks for loans and account opening

are demanding such certificates. They have the easiest option to complete the formalities at the risk of the employer company. How justified is it to get stuck in a query raised in a crime and then give them the explanation? You must remember the crime and the complexity in the use of technology.

Many organizations follow a practice that does not mean they are following a sound practice. For any complication, you may be held personally liable for the above in any case despite the "condition of absolving their responsibility arising out of the issuance of such certificates."

It is also true, "when an employee joins a company and needs address proof, where will he/she go? Is it easy to get the address proof from government bodies?"

You may help them in completing the formalities with the concerned agencies. Ensure that you keep the employee informed of all the details, and surely we must help them but to the extent we are safe and do not incur any known or possible liability.

Do your job, do a good job, do a safe hassle-free job for yourself and for the company.

We never issue such certificates nor suggest to staff to demand such certificates from us but help them to recognize their experience wherever it is genuinely required for the specific purpose.

We believe that they must be convinced about our problems and limitations.

Organizations have full authority to certify the identity/address proof of their employees, and the same is accepted as an authentic/valid document by banks and other institutions, including government institutions like the income tax department, etc. When you apply for a passport or PAN card, the employer's certificate as an address is accepted.

Regards,
Kamal

Opening a Salary Account for Employees

How do you open a salary account for your employees with the bank? The bank requires two documents as address proof: 1) Permanent Address Proof and 2) Present Address Proof. The bank accepts an employer certificate as present address proof but not as permanent address proof.

Now, suppose an applicant (applying for a job in your organization) is an outsider and does not have any document as proof of their present address. Does this mean you will not recruit that applicant simply because they do not have a document supporting their present address?

Issuing any document, not just an address certificate, without proper verification is akin to inviting future trouble. However, providing a certificate after verification to the satisfaction of the employer is not incorrect.

Regards

Address Proof Issuance by Organizations

We are focusing on the certificate of address proof issued by organizations and suggest that this is not a sound practice. This is okay if issuing any document, not only an address certificate, without proper verification, is inviting future trouble. However, issuing a certificate after verification to the satisfaction of the employer is nothing wrong.

But the question is whether the company is competent to issue an address proof. Surely, this is not the case despite most organizations following this practice.

It is also true that banks are demanding address proof, as mentioned in my previous reply. However, it depends on how the offer of opening the salary account was negotiated initially.

We have instructed our banker to correspond with the respective employee at their residential address and not at the company address. We can only certify their employment details. We do not provide an undertaking for the present or permanent address proof.

Usually, banks open salary accounts where they are confident that the average salary upload will be more than 10,000.00 in a month and a minimum of certain accounts with an expectation of further business with the employee primarily and possibly with the organization too. Therefore, this is their business, and our business is to run our operations appropriately without overstepping our competencies.

Currently, banks like ICICI follow PAN for the name convention along with an address proof where the bank will correspond. It also implies that PAN should be considered the name convention within the organization as there is reporting to the IT department for Form 16; thus, the similarity should be maintained. We must advise our staff to verify their ID documents and rectify any inaccuracies in their names or addresses.

Candidates without address proof for their current address may provide proof later in the form of a rent deed attested by a notary. It is imprudent to reject or deny a suitable candidate due to the unavailability of address proof temporarily. It would be more appropriate to issue an address proof on a company letterhead to such a person.

Please let me know if anything further is required.