Employment References – A Risky Business?

As a result of a recent UK decision, we review risks associated with providing employment references and with seeking to withdraw a job offer on foot of a negative employment reference. We explore steps that organisations can take to protect themselves against adverse findings of discrimination, breach of contract or defamation.

A recent Employment Appeal Tribunal ("EAT") decision in the United Kingdom demonstrates the risks of employment references, both for those who issue them and those who rely on them. In this case, Ms. X suffered from a "disability" and had prolonged periods of absence throughout her employment with Company A.  

Company A mentioned Ms. X's absence in her employment reference and also commented that it felt she was unsuitable for the role with Company B.  As a result, Company B withdrew the job offer it had made to Ms. X. The EAT found both Company A and Company B were guilty of discrimination. Although the case was in the United Kingdom,