Providing References For Employees

In today's highly competitive job market, obtaining a good reference from a former employer is increasingly important. However, as a general rule there is no obligation for employers to provide a reference for past employees - one exception to the general rule is that employers who are regulated by the Financial Services Authority have to give a reference for an FSA registered employee.

There are a number of potential legal pitfalls surrounding the provision of a suitable reference. The employer owes a duty of care to former employees when it comes to providing a reference, which means that an employer can be sued in negligence for including false or misleading information in a reference which subsequently causes the employee to suffer a loss.