Employee References - The Pitfalls

While most employers will not take on a new employee without a satisfactory reference, the provision of references does involve a number of legal issues. Not only do employers have to consider their duty of care to a prospective employer but, in so doing, they must also avoid breaching their varied duties to the employee. In addition, employers will sometimes also need to comply with further responsibilities imposed by a regulator.

This note seeks to outline the main pitfalls and suggest practical ways of minimising the risks. It will also consider briefly the legal issues that sometimes arise when a prospective employer receives an employee reference.