There comes a time when one may be extremely busy or due to unforeseen circumstances not able to go and collect their salary. Under such circumstances, it becomes important to let someone collect the salary on your behalf. However, to permit them, you must write an authorization letter to show that you have allowed them to collect the salary on your behalf. It is, therefore, important to know some of the basic things to do when writing an authorization letter.
When is this type of Authorization Used?
Various reasons may prompt one to write an authorization letter. The most common reasons why they may do this is due to sickness, family emergencies, workload, long trips, holiday vacations, or any other valid reasons. The person may have no option but to delegate their duties to someone they trust in their family, workplace, or close friends.
Other circumstances that may prompt one to write an authorization letter authorizing another person to collect money on your behalf include:
- When you have been tasked to collect money from another company, but due to some reasons you are unable to do it, you might consider delegating the duties to someone else, in which case you would have to write an authorization letter.
- When you are supposed to collect checks from a company or person, and again due to some unavoidable circumstances you are unable to do so, you may permit another individual to collect the checks on your behalf.
- You may also be required to write an authorization letter when you are permitting someone else to operate your bank account on your behalf.
Things to Include in Your Authorization Letter
When writing an authorization letter, make sure your letter contains the following:
Recipient’s Information: Include the recipient’s Information after writing the date. These include; their name, address, designation, and any other relevant information that may be required to identify them.
Subject: include a relevant subject on the authorization letter such as;
“authorization to collect salary on my behalf.”
“authorization to collect money on my behalf.”
Salutation: just like any other official letter, use appropriate salutation in an authorization letter. Your salutation should be simple such as; Dear Mr./Ms. [name], Dear Madam, Dear Sir, etc. in situations where you don’t know the recipient, you can direct the address the letter “To Whom It May Concern.”
Reason: Provide a brief explanation of why you are unable to collect the money yourself.
Beneficiary Details: indicate the payee’s name, address, and any other relevant information in the letter. You can use either their Formal or Passport name
Authorization Details: make sure to write the formal name of the person you are authorizing to collect the salary on your behalf. State that you have approved them to collect the money on your behalf. You should also include any other relevant information that may be used to identify them, such as their SSN, Passport, or ID card number. It is also important to indicate your relationship with the individual.
Period of Authorization: specify the duration in which the letter will be valid
Date of collection: indicate the actual date in which the individual will be collecting the salary
Additional Information: if you would like the recipient to know any other thing regarding the disbursement of your salary, for instance, if you would like the recipient to send you an SMS or an Email after the person collects the money, then you should indicate so in the letter.
Contact Details: include any information that may be used to verify that you indeed authorized the person to act on your behalf. These details may include; Your name, address, email, and any other relevant information.
Letter Closing: close the letter using a polite tone, such as “Thank you for your cooperation.”
Signature: after typing and printing the letter, include your handwritten signature in the letter and stamp it if you have a company stamp.
“Money is the root of all evil,” when authorizing someone to collect money on your behalf, you should take the necessary precautions to ensure that you don’t lose your money. Some of the things to consider before authorizing an individual to act on your behalf include:
- Make sure that the person you fully trust the person you are authorizing
- Make clear the duration of the authorization in the letter
- Make sure that the authorization letter contains your name and contact information for verification purposes
- The authorization letter should bear your company letterhead
- Make sure to include your company stamp if you have one to remove any doubts and to make the letter more official
Sample Authorization Letter to Collect Salary
Name of the Authorizing Party
Name of the Person
Sub: Authorization Letter to Collect Salary
Dear Mr./Ms _____.
I, ______, [your name] hereby authorize ___ [name of the person being authorized], to collect my salary on my behalf as I am hospitalized. My company registration number is and _ [ID number of authorized persons]. He is only permitted to collect my salary so please make the necessary checks.
I am hereby allowing this person to sign any documents concerning this transaction. Thank you for your corporation.
- MS Word