References from employers
For immediate legal advice from employment solicitors on employment references call Cambridge Legal on 01223 776200 or email enquiries@cambridgelegal.co.uk
The need for an employee to have a good, or at least not a bad, reference from his or her employer is an important issue in most employment disputes. For an employer a reference can be a bargaining chip; for the employee the reference is often crucial for securing a new job.
Generally, there’s no legal obligation for an employer to give a reference, but if a reference is given it must be true, accurate and not misleading. In financial services the Financial Conduct Authority (FCA) (formerly the Financial Services Authority) requires specific information to be given in the form of a reference for regulated employees to ensure that they are competent. Typically they seek references covering the previous five years.
Similar principles apply to oral references. What is said by former employers on the telephone, for example, that they are not prepared to put in writing can cause problems for the employee and employer.
A common myth is that employers cannot give bad employment references. However, employers should be very careful to give an accurate and balanced reference. It is best to seek legal advice if negative information is being included.
The General Data Protection Regulation (GDPR) provides a means for employees to access the references that their employers have provided. Cambridge Legal can advise on GDPR. Employers now have to be more vigilant than before. Employees can take action to remedy problems with their references. References do not necessarily stay secret.
Actions against employers concerning references are typically for negligence, malicious falsehood and negligent misstatement. Defamation is a less common possibility. We recently sued the University of Cambridge and obtained an early settlement comprising compensation and payment of our client’s legal costs. The claim concerned an unsatisfactory reference that resulted in our client losing her job with a new employer. We issued County Court proceedings for malicious falsehood and negligence.
It is common employment practice in many organisations, particularly larger employers, to give short references. These are sometimes known as “factual” references by which it is meant that the reference simply states the employee’s dates of employment, job title and nothing else other than a disclaimer of any legal liability. They reflect the times in which we live with high staff turnover and the risk of employers being sued for giving inaccurate or misleading information.
Whether you are an employee or employer we can advise you how best to deal with references and GDPR. Don’t be caught out by the wrong words.
If you are looking for specialist legal advice from Cambridge employment solicitors on references or any other aspect of employment law, call Cambridge Legal on 01223 776200 or email enquiries@cambridgelegal.co.uk
“The safe and general antidote against sorrow is employment” Samuel Johnson