Everything you need to know about professional references (part 1). Image of an interviewer with an applicant
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

Generally, there's no legal obligation on employers to seek references for new employees.

Employers can choose not to seek references and to rely on information provided by the candidate instead, particularly if the role is temporary or the employer requires someone urgently.

However, most employers prefer to obtain at least one reference from the applicants' current/previous employer to verify the accuracy of the information provided. Employers in the finance sector are required to obtain references when recruiting for an “approved person” role.

Employers should generally not approach the prospective employees’ current or previous employer unless the candidate has given permission. The Employment Practices Data Protection Code, issued as guidance to the Data Protection Act 1998, specifies that Employers should always obtain an applicant's signed consent before seeking any information about them from a third party. This Code isn't legally binding but can be taken into account by a Court or Tribunal if there's a legal challenge.

Employers should also respect a request from a job applicant not to contact their current employer until the appropriate time.

Is there a legal obligation for a previous employer to give a reference to their ex-employee?

There's no legal right for a employer (the referee) to provide a reference about an ex-employee, whether the request is from the ex-employee, another employer, a bank or a landlord, unless this was a requirement of their employment contract.

However, if an employer is regulated by the Financial Services Authority and they receive a reference request relating to a former employee who was an 'approved person', whose new role will include performance of a 'controlled function', the employer is obliged to respond as soon as reasonably possible, and to provide all the relevant information.

An employer may also have an obligation to provide a reference for a former employee if they've agreed to do so under the terms of a compromise agreement (which is a mutual agreement that the employee's employment is to be terminated). In these circumstances, specific wording to be included in the reference is often agreed between the parties when drawing up the compromise agreement.

Can a new employer withdraw a job offer on receipt of a bad reference?

Yes, if a job offer has been made that's conditional on receipt of satisfactory references, the employer can withdraw the job offer if it receives a bad reference.  The employer should investigate the situation further though, to see if the individual is unsuitable or not and whether it wishes to employ them.

The employee affected may have the right to see this reference. There are two possible ways:

  • The Data Protection Act doesn't require that a confidential reference given (by an ex/current Employer) be disclosed to the employee, and the employer can refuse to show the employee the reference.

However, the recipient of the reference (the prospective employer) may disclose the reference to the employee if the employee asks. However, the prospective employer isn't obliged to comply with the request from the employee unless the author of the reference (ex-employer) agrees to this, or it's reasonable to comply with the request without the author’s consent. If the author of the reference has compelling reasons for the reference to be edited or not disclosed the prospective employer cannot disclose the reference.

  • The individual employee, if they believe a negligent reference has been given about them, can take Court proceedings against their ex/current-employer

Onwards to part two - When a previous employer provides a reference, what obligations do they have?

If you are an Employer and need ongoing professional help with any staff/freelance issues then talk to Lesley at The HR Kiosk  - a Human Resources Consultancy for small businesses – our fees are low to reflect the pressures on small businesses and you can hire us for as much time as you need.

Please note that the advice given on this website and by our Advisors is guidance only and cannot be taken as an authoritative or current interpretation of the law. It can also not be seen as specific advice for individual cases. Please also note that there are differences in legislation in Northern Ireland.

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
Self Assessment tax returns done for you, from just £200+VAT
Take the stress out of Sole Trader Accounting, with our simple online software, so you can look after your accounts anytime, anywhere.
Share this post
Lesley Furber
HR Consultant
Updated on
February 21, 2020

Knowledge Hubs

Take control of your accounts, today

Crunch’s effective software package includes being able to talk to an expert client manager and a Chartered Certified Accountant. You can count on Crunch to make you productive and profitable.

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! June 27, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks
Pro Tip
Work out the tax you owe in seconds

Discover your true take-home pay with our self-employed tax calculator – see exactly what you’ll keep after tax, National Insurance, and expenses.

Pro Tip
Want to know how much National Insurance you owe?

Find out exactly what you owe on your income in seconds with our free National Insurance calculator.

Pro Tip
Want to know how much mileage you can claim for?

Our free mileage allowance calculator can help you see in seconds what you could get back.

Pro Tip
Want to work out your income tax?

Find out what Income Tax and National Insurance you owe on your earnings with our free tax calculator.

Pro Tip
Want to work out what your Capital Gains Tax bill?

Our free Capital Gains Tax calculator shows what tax you owe on any property, stocks or gifts.

Pro Tip
Want to know how much dividend tax you owe?

Find out exactly what you owe on your investments in seconds with our free dividend tax calculator.

Pro Tip
Want to see what we're currently working on?

Our public roadmap shows what we're working on and what's coming next. You can even vote on what features we work on next!

Pro Tip
Your ultimate guide to stress-free taxes

Tackling taxes can be tough! Get our "Ultimate tax guide for the self-employed" now to make it easier.

Pro Tip
Claim your FREE ecommerce guide today

Curious how great accounting can boost your e-commerce business? Download our guide to discover 8 key ways!

Pro Tip
Unlock the secrets of Ltd company expenses

Don't miss out on potential tax savings - get access to our 'Limited Company Expense' guide today!

Pro Tip
Want to make sure you don't miss any tips?

Sign up to our newsletter for expert insights, tax news and other essential updates that will keep your business thriving. Subscribe now!

Pro Tip
Ready to save big on Ecommerce accounting?

Crush your current accounting and software fees by up to 60%. Put us to the test and watch your savings soar!

Pro Tip
Looking for a dedicated accountant?

Our Enterprise packages offer tailored support for you and your business. You can focus on your business, we'll crunch the numbers.

Pro Tip
Boost your business finances with our Ltd Company packages!

Award-winning software with support from expert accountants

Pro Tip
Take the stress out of Sole Trader Accounting

Real-time insights, expert support—stay on top of your finances with ease.

Pro Tip
File your Tax Return

Get your tax return sorted by experts for only £200+VAT!

Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Pro Tip
Want access to real expert accountants?

All our accounting packages include free access to Chartered Certified Accountants, so you can make confident business decisions without worrying about extra costs racking up.

Pro Tip
File you Tax Return!

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £200 +VAT.

Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.