Recent work undertaken by Einon HR for a client in Rushden, Northants highlights the need for employers to take care when providing references for prospective employers. Any reference provided should be fair, accurate, true and not misleading, otherwise they risk claims for negligent misstatement or deceit.
It is also important that employers are consistent in their approach to avoid employee allegations of discrimination or victimisation. Having a policy in place on providing references helps.
There is generally no obligation on prospective employers to ask for a reference, but where an employer asks for one and receives a reference that it considers unsatisfactory, it should avoid knee jerk reactions such as withdrawing the job offer or dismissing the employee.