Employer Guidance: What You Can and Cannot Include in References

Why References Matter

Employment references may feel like a routine task, but they carry legal and reputational weight for employers. A poorly written or misleading reference can expose your business to claims, while being overly cautious might raise questions from future employers. Understanding your responsibilities is essential to get this balance right.

Do Employers Have to Provide a Reference?

In most situations, there is no general legal duty to provide a reference.

However, exceptions apply:

• Contractual obligation – If an employee’s contract explicitly states they are entitled to a reference, you must provide one.

• Industry requirements – In certain sectors (such as financial services), there may be an expectation or regulatory requirement to issue references.

Importantly, an employer must never refuse a reference for discriminatory reasons (for example, because an employee raised a grievance, whistleblowing, or made a legal complaint). Doing so could expose the business to claims.

What Information Should You Include?

To reduce risk, many employers now issue basic factual references that confirm only:

• Job title

• Employment start and end dates

• Salary (optional)

Anything beyond this—such as opinions about performance or behaviour—should be avoided unless it is factual, documented, and verifiable. Negative or misleading comments can leave the employer open to defamation or negligence claims.

Data Protection Responsibilities

Employment references involve handling personal data, so compliance with the Data Protection Act 2018 is critical. Employers should:

• Avoid sharing sensitive information (e.g., sickness absence reasons) without explicit consent.

• Seek permission from the employee before issuing a reference—this is often best done as part of an exit process.

Keeping the Process Safe and Consistent

The safest approach for employers is to introduce a clear reference policy. This usually limits responses to factual confirmation only, ensuring consistency across the business and minimising risk. Designating a single HR contact to handle references also reduces the chance of errors or unauthorised disclosures.

Key for Employers

Employment references don’t have to be complicated—but they do need care. By keeping references factual, consistent, and compliant with data protection, employers can avoid unnecessary risks while maintaining professionalism.

Need Advice on Employee References?

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