This week we’re exploring the importance of reference checks for new hires, why they matter, when they’re essential, and how to get them right!
While there’s generally no legal obligation for employers to provide references, checking references is an important step in verifying a candidate’s background, character, and suitability, adding a vital layer of due diligence to your recruitment process.
When Is It Mandatory?
If your business operates in any of the following regulated sectors, reference checking is not just good practice, it’s a legal or regulatory requirement:
- Health & Social Care (e.g. care homes, domiciliary care – CQC regulated)
- Education (schools, early years settings – guided by Keeping Children Safe in Education)
- Financial Services (regulated by FCA/PRA under SM&CR)
- Security Industry (licensed by the SIA – Security Industry Authority)
- Aviation / Border Force / Airport Security (requires background vetting for security clearance)
In these sectors, reference checks form a key part of safer recruitment and compliance processes.
Why Reference Checks Matter
Interviews and CVs can tell you a lot, but references offer a critical third-party view on a candidate’s:
- Reliability and conduct
- Past performance
- Suitability for the role (especially where safeguarding or client trust is essential)
When and How to Request References
Only request references once you’ve made a job offer, and ensure the candidate has given explicit consent.
If references haven’t yet been received, make your offer conditional on receiving satisfactory references. This allows you to withdraw the offer lawfully if something concerning arises.
Work vs Character References
A reference can be:
- A work reference (from a current or former employer)
- A character reference (from a professional or personal contact)
- Or both, depending on your internal policies and the role.
If you’d like a template for requesting or giving a reference, your RBA consultant can provide one.
Can You Give a Negative Reference?
Yes but with caution! A reference must be:
- True, fair, and accurate
- Given with reasonable care
- Not misleading or discriminatory
An employer can choose how much detail to include, but omitting key facts (such as disciplinary action or safeguarding concerns) can be just as problematic as including unfair or false information.
Note: Former employees can raise legal complaints if a reference contains discriminatory content, or if it’s linked to a previous employment issue (e.g. whistleblowing, protected characteristics).
Legal Case Spotlight: Mr P Mefful v Citizens Advice Merton & Lambeth
In this Employment Tribunal case, Mr Mefful had raised claims of disability discrimination and victimisation, arguing that his ex-employer provided a misleading reference overstating his sickness absence and concluding they would not re-engage him.
The Employment Tribunal’s 2017 ruling found in his favour on these grounds.
The matter was appealed and ultimately determined by the EAT on 19 December 2024, where the appeal was dismissed.
Key takeaway: Any negative or critical information in a reference must be factually correct, balanced, and non-discriminatory. Misrepresentation especially related to protected characteristics like disability can potentially lead to legal liability and damage to both employer and candidate.
Best Practice for Reference Checking
- Be Consistent: Apply the same reference-checking process to all new hires, regardless of seniority or role.
- Always Get Consent: Aside from being good etiquette, it ensures compliance with data protection laws (e.g. UK GDPR).
- Don’t Rush: Plan time to request and review references carefully. Rushed checks often lead to gaps or missed red flags.
- Contact More Than One: Speaking to multiple referees increases reliability and gives a more rounded picture of the candidate.
Need Help?
If you’re unsure about your reference-checking obligations or want to set up a process that works for your business, then get in touch with us at RBA to find out how we can support you.