Types of references: professional vs. character

There are two broad different types of work reference:

1. Professional references; and
2. Character references

Professional references

There are generally two types of professional reference:

• Judgment-based reference: provided by former employers or managers, these focus on your work experience, skills, and performance. They normally incorporate some element of judgment about your skills, character, and performance.
• Standard factual reference: provided by your employer to confirm the dates of your employment (start date, end date) and position that you most recently worked in.

These references can be provided verbally or in writing.

Character references

Offered by someone who knows you personally, such as a colleague or mentor, and highlights your personal attributes.

Your rights regarding references

Do employers have to request references?

No, a prospective employer generally does not have a legal obligation to request a reference for you, although some regulators do require that employers obtain references for prospective employees (for example, the SRA requires that law firms obtain references for potential employees).

Most employers, in reality, do ask for references for prospective employees.

Is your employer obliged to provide a reference?

Employers are generally not legally required to provide a reference unless it is specified in your employment contract (although such a clause is rare). Most employers, though, do provide references, although they will normally limit the information given to that contained in a “standard factual reference”.

The reason why employers only provide limited information where a reference request is made is due, generally, to reasons relating to legal liability – they can potentially be sued for providing negligent or defamatory references, and they have to therefore be careful about what information they provide.

There are some circumstances in which employers are obliged to provide a reference, however, such as if an employee is regulated by the Financial Conduct Authority – these are commonly known as “regulatory references”.

What can be included in a reference?

Employers can choose to give either a detailed or a basic reference. Basic references typically confirm your job title and dates of employment. Detailed references may include information about your performance, conduct, and reasons for leaving.

Challenging an unfair or misleading reference

If you believe a reference is inaccurate or unfair, you can request a correction. Write to your (former) employer to identify the error in the reference given and ask that they correct the error.

For example, if you have agreed a settlement agreement with your employer under which the terms of a reference was agreed and your employer has failed to provide the agreed reference, you may have a claim for breach of contract against them (if the failure to provide the agreed reference has caused you a quantifiable loss).

If the issue remains unresolved, you may have grounds for a legal claim, such as (depending on the circumstances) defamation, negligence, breach of contract, discrimination or victimisation. It is generally recommended, however, that you try and resolve the dispute regarding the reference before resorting to threatening legal action.

Navigating the reference process

How to request a reference from your employer

• Approach your manager or HR department with a polite, formal request.
• Provide details on what you would like the reference to cover, if possible.

Alternatives if you cannot obtain a reference

• Use character references from mentors or colleagues.
• Try and contact a previous employer to try to obtain a reference.
• Include references from volunteering or freelance work.

Explaining a lack of reference to potential employers

Be honest about why you cannot provide a reference and offer alternative ways to demonstrate your experience, such as performance reviews or portfolios.

Legal issues with work references

Data protection issues

Employers must comply with data protection laws, ensuring that any personal information shared in a reference is accurate, relevant, and lawful.

Discrimination

References must not include discriminatory comments based on characteristics such as age, race, gender, or disability (among others). If discrimination occurs, you may have grounds for legal action.

Employers also must not refuse to give a reference, or give a poor reference, if you have raised a  complaint regarding discrimination in the workplace or having brought an Employment Tribunal claim for discrimination or harassment – this could, potentially, allow you to bring a claim for victimisation in the Employment Tribunal.

The impact of dismissal or disciplinary actions on your reference

While a reference can mention dismissal or disciplinary issues, it must be factual and not misleading. Most employers, however, do not include information regarding why you were dismissed from your role, and simply stick to the factual information contained in a standard factual reference.

Best practices for employees

Preparing for reference requests during job applications

• Keep a list of potential referees ready.
• Inform your referees in advance when applying for new roles.
• Make sure to send the reference requests promptly.

Maintaining professional relationships to secure positive references

• Stay in touch with former colleagues and supervisors.
• Contribute positively to your workplace culture to leave a lasting good impression.

Understanding the role of references in different industries

• Some sectors, such as education and healthcare, place more emphasis on detailed references.
• In creative industries, portfolios and recommendations may carry more weight than formal references.

References in the financial services industry

The Financial Conduct Authority (FCA) is required to exercise control over the employment of individuals who are authorised to undertake certain important financial services functions. This means that financial services will generally be required to do two things:

• The FCA handbook requires financial services firms to provide any information relevant to an employee of which they are aware, when a reference request relates to a job which requires the person being appointed to carry out a “controlled function”; and
• Firms must seek references from a candidate’s previous employers in the last six years if a prospective employee is going to be undertaking a senior manager role or a certified role

The combination of these requirements is known as a “regulatory reference”.