8 Things Every Employer Should Know about References

It is common practice for employers to provide references for employees and ex-employees, but there are risks involved. Here are eight things you need to know before you give anyone a reference.

  1. No legal duty to provide a reference. There is no obligation on you to provide a reference for an employee or ex-employee, unless there is a term in the contract which provides for this. This is irrespective of whether the request for the reference comes from the employee, a prospective employer or any other third party such as a bank or landlord.
  1. References must be true, accurate and fair. You have duties towards the subject and the recipient of the reference. You must take reasonable care to ensure that the information in the reference is true, accurate and fair, and does not give a misleading impression. If you fail to take such care, you could be sued for negligent misstatement and ordered to pay compensation. As an employer you must ensure that any reference you give, or any reason for refusing to give a reference, is not discriminatory and does not amount to victimisation. Employers can be liable for discrimination against a former employee even if it occurs after the employment has ended.
  1. Policy on giving references. It is good practice for employers to have a written policy on providing references. The policy should set out when a reference will be provided, who within the organisation may provide references and what information the reference should include. Many employers have a policy of providing a standard reference including only limited information, for example dates of employment and positions held. This limits exposure to claims.
  1. Settlement agreements. When you receive a reference request, you should check if there is a settlement agreement in place relating to the particular individual. Settlement agreements often contain the wording of an agreed reference, which the employer agrees to provide in respect of any reference requests made regarding the individual. There is more here on Settlement Agreements in one of our previous blogs.
  1. Employee consent to reference. In writing a reference, you are likely to have to process the employee’s or ex-employee’s personal data, as regulated by the Data Protection Act 1998. You need to check that the individual has consented to a reference being provided.
  1. Sickness absence. You must get explicit consent from the individual if you are providing sensitive personal data, such as physical or mental health information. Revealing the number of days an employee has been absent, but not the reasons for the absences, will not require explicit consent. However, this does run the risk of disability discrimination.
  1. Disclaimer of liability. Employers often include a disclaimer of liability arising from errors, omissions or inaccuracies in the information provided in a reference. The circumstances in which a disclaimer will be effective are limited. However, it is still worth you including one.
  1. Sending the reference. A written reference should be addressed to the named individual who has requested it and marked “Strictly private and confidential” and “To be opened by the addressee only”.

What’s the Safest Way to Withdraw a Job Offer?

I have been asked a lot of questions recently about withdrawing job offers based on poor references, so I thought that I would write about it in more detail here. 

Can you withdraw a job offer once it has been made? What risks do you face as an employer if you change your recruitment plans?

Sometimes you will need to withdraw an offer of a job. The hiring situation may change because of a general recruitment freeze, a restructure within your organisation or a change of management. The funding for the post might have been withdrawn or you may become aware that the selected candidate is not suitable after all.

Job offers can be withdrawn after they are made, but there are risks associated with doing this. Withdrawing an offer because circumstances have changed looks like bad planning and could affect your company’s reputation. The employee may be able to bring a tribunal claim for breach of contract.

When is the contract of employment formed?

An employment contract is formed once an unconditional job offer is made and accepted. If you withdraw an unconditional job offer once it has been accepted, you are effectively terminating the contract and could be liable for damages for the individual’s loss.

Even though the individual has not started working for you, there will be a notice period due – just as with other terminations. Damages could amount to what the individual would have received if you had given proper notice – including any pay and benefits due.

What if your recruitment plans change?

If your recruitment plans change due to business needs and you have to withdraw job offers, you should notify the recruits as soon as possible to try to limit the damage and enable them to mitigate their potential loss. The selected candidate might not have resigned from their current employer yet. If they have, they may still be able to ask for their old job back – the sooner this is done the better.

Pre-recruitment checks and job offers

Most job offers are conditional on the new recruit satisfying certain conditions. The selected candidate may need to provide references or evidence of qualifications, or they may need to demonstrate their right to work in the UK. If the individual does not satisfy one or all of those requirements, you can withdraw the job offer without being liable for damages.

If you don’t make it clear that the job offer is conditional, and then withdraw the offer because the recruit has not satisfied one of your requirements, this will amount to a breach of contract and you may be liable for damages. Offers of employment should make absolutely clear that they are conditional on certain requirements being met. Failure to do so can be costly.

If you’re considering making or withdrawing a job offer and you want to make sure that you’re doing it properly, contact us first for some advice. Call us on 0118 940 3032 or email sueferguson@optionshr.co.uk.

3 Steps to Get You Through Those Dreaded Appraisals!

With the end of the year approaching fast, now is a really good time for you to be thinking about annual appraisals. It is ideal if you can complete them all by the end of the year, as they give you a good opportunity to review the performance of your staff this year; and to plan what you want them to achieve next year.

Many managers approach appraisals with fear and trepidation. However, if you put some time into preparing for them, they can be a very useful tool for developing your people and improving performance across your business. Read on to find out how to this simply and efficiently!

It seems that many managers, whether relatively new to the job, or with many years of experience, would rather not spend more time than is absolutely necessary on annual appraisals. They have bad press as being a waste of everyone’s time. This is quite possible, if you approach them at the last minute, with no preparation. Here are three steps that will help you and your employees to find them much easier to get through and actually get the best from your time.

  1. Preparation

This is one of the most important stages of the appraisal process and is often missed or skipped over too quickly. You need to have facts about each employee’s performance and evidence of instances in which they have performed well or badly. This will make the appraisal constructive and meaningful.

Throughout the year, track each employee’s performance and keep a log of memorable incidents or projects they’re involved in. Look back at previous appraisal information and job descriptions to make sure they are meeting their agreed objectives.

Make sure that your employees are prepared too. Agree the date, time and place for the meeting at least two weeks in advance; brief them on the importance and scope of the meeting and what you expect from them. Ask them to spend some time thinking about what they’d like to discuss at the meeting too. Click here for an example of a form that you can ask each employee to complete before the appraisal.. If an employee also works for someone else in the business, ask them to be involved too.

  1. The Meeting

Once the preparation is done, here’s how to carry out the meeting:

  • Ask open and probing questions, giving your employees the opportunity to decide how to answer; encourage them to talk freely
  • Listen to what they say without interrupting. Also watch their body language for messages
  • Evaluate performance, not personality. Focus on how well the employee does their job rather than personal characteristics
  • Give feedback based on facts not subjective opinion. Use feedback to positively reinforce the good. In the case of underperformance, use it to help the employee understand the impact of their actions or behaviour and the corrective action required
  • Set SMART objectives for the future and set a timeline for improvement if an employee is underperforming. Look also for development opportunities to help your employees reach their potential.

Document each appraisal. Write a summary of the discussion, what was agreed and any action to be taken while it’s fresh in your mind.

  1. Follow Up

Don’t just walk away at the end of the meeting, breathing a sigh of relief and forgetting about it all until next year!

Do what you say you will do. Fulfilling your promises reflects well on you and your business. If you’ve set deadlines for performance reviews, follow up on them. Check on progress that you discussed in the meeting.

Not following up with appraisals means that the whole process will be a waste of time and something that neither you nor your employees look forward to or find useful. Spend some time planning and preparing and you’ll find them really useful and productive.

If you need help with appraisals, why not use our Appraisal Service? We will help you to hold meetings that actually work for you, your staff and your business. Click here to find out more.