WRC awards €42,000 to dismissed salesman who said his employer's policy of not giving references in writing damaged his employment prospects

In general, there is no legal obligation on an employer to provide an existing or former employee with a reference of any kind. In situations where no problems arose during the employment relationship and the employee has given valuable service, the employer may feel a moral or ethical obligation to provide a reference. However, many employers are reluctant to provide employment references for fear of being sued on foot of them. An employer has a duty to take reasonable care in compiling or giving a reference and in verifying the information on which it is based. Where an employer gives an inaccurate or unfair reference about an employee to a prospective employer, it is clearly foreseeable that the employee may suffer financial loss as a result of failure to obtain the new employment. It is important to note that the duty of care is owed not just to the former employee, but also to the recipient of the reference (the new employer, for instance). Economic loss to both the employee and the prospective employer can occur as a result of a damaging reference. Due to increased incidents of litigation, many employers refuse to give references and instead merely confirm dates of employment, and the position held.

However, in the below summarised case, the Adjudication Officer (AO) found that the Respondent’s refusal to provide a written reference without justification contributed to the Complainant’s loss of earnings, following his dismissal.