Does it mean that if the employer refuses to mention in the leter specifically the words "she is still needed", my application will be rejected? The fact that the letter dated August 21st, 2007 mentions that my employment is from October 2006 to September 2008, and the fact that i am still...

No. I came on a contracted job, and later changed jobs.
Chitra

It is a contracted job for 2 years, and not a regular job. I have been on contracted jobs only all these years, but without any break.
Does that change the situation?
Chitra

Thank you for the posted reply.
Since the letter states that my employment is upto September 2008, is it not obvious that I am still needed, and that after ILR also i will be getting salary from that job.
Please clarify.

I propose to immediately submit my application in SET(O) form for ILR, since I have just completed 5 years of employment with work permit in UK. The letter given by my employer has stated the dates I am employed from and to instead of stating that I am still needed, as mentioned in the application f...