Our Eight Best Practices and Legal Requirements for Providing Employee References | Consensus HR
Part One of Two:
When an employee decides to leave your business, one common task for employers is handling requests for references. At Consensus HR, we are frequently asked about the best practices and legal obligations regarding employee references in the UK. Understanding these aspects is crucial to ensure compliance with the law while also maintaining good business practices.
1. Understanding Your Legal Obligations: Are References Mandatory?
In the UK, there is no general legal obligation for employers to provide a reference for an employee or former employee. However, there are some exceptions:
- Contractual Obligation: If an employment contract or company policy states that a reference will be provided, the employer must adhere to that commitment.
- Sector-Specific Requirements: Certain sectors, such as financial services, may have regulatory obligations to provide a reference. Always check any industry-specific guidelines that may apply.
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2. Providing References: Keeping It Fair and Accurate
While there is no obligation to provide a reference, if you choose to do so, it must be accurate and fair. This is a legal requirement under the law of negligence and defamation:
- Accuracy: Ensure all information in the reference is factually correct. Avoid including any unverified information or subjective opinions that cannot be backed up.
- Fairness: A reference should not be misleading or present an inaccurate picture of the employee. Omitting key facts, such as an employee’s dismissal for gross misconduct, could be seen as misleading to the prospective employer.
3. The Content of References: What to Include and Exclude
When providing a reference, it is good practice to include only basic details:
- Employment Dates: Confirm the start and end dates of the employee’s tenure.
- Job Title: Provide the job title(s) held by the employee.
- Responsibilities: Outline the main duties or responsibilities, if appropriate.
It is advisable to avoid including details that could be viewed as subjective or discriminatory, such as comments on the employee’s character, attendance, or health, unless they are factual and relevant to the job they have applied for.
By following these best practices, you can manage reference requests effectively, minimise legal risks, and maintain a positive reputation for your business.
Our HR comment: Our Eight Best Practices and Legal Requirements for Providing Employee References | Consensus HR
Our HR comment / Advice: –
Matthew Chilcott, Owner of Consensus HR comments: “By adopting these approaches, you protect your business while also providing a fair and honest representation of your former employees, supporting them in their future career endeavours. For tailored advice and support on handling employee references, get in touch with Consensus HR today.
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