Is my employer obliged to give me a reference?

Your employer is not legally obliged to give you a reference unless it has agreed to do so under the terms of a COT3 or a settlement agreement or unless it is required to do so which applies to some regulated sectors (teachers, FCA regulated managers). It is open to an employer to decline to give a reference and they are not obliged to tell you why. 

Businesses that are authorised by the FCA or PRA are subject to specific rules about references either under general rules or under the senior managers and certification regime (SM&CR) (if you work in a controlled function) which applies to financial services firms.   Chapter 22 of the FCA Handbook and other sections deal with this. 

References for employment may be given in a personal capacity or on behalf of the employer. The latter will usually comprise only dates of employment and the role held. Personal references are much more likely to go into performance and other factors that a person who values you is more likely to be able to comment. Generally businesses will give only the minimum detail because if they provide information that is detrimental to your future employability you may be able to sue them on it. For this reason we mostly only see role confirmations. Back in the day it was customary when negotiating a settlement agreement for a departing employee or executive to have input on an agreed reference. This practice has largely died out because it signals to a new employer the fact that you have been “settled out” of your role and this can carry adverse inferences. If you are negotiating your exit from a company and they will only confirm dates and role go with it. This is the path of least resistance. 

If your former employer makes a statement about you either orally or in a written reference that has a detrimental impact on your employment prospects and which you disagree with on the facts you may be able to bring a claim in tort for negligent misstatement. That won’t do you much good however as finding another job will be a much greater challenge. If you have any uncertainty about whether your employer is likely to give a negative reference simply do not provide their contact information as a referee.

The absence of a reference if you have worked in one place for a significant amount of time will be difficult for your employment prospects. Let’s say you are facing a charge of inappropriate conduct in the workplace and are invited to resign. It may be worth negotiating a neutral reference in exchange for giving your resignation so as to ensure you can account for the time you worked there and to avoid any further issues. While this has no direct monetary value it is hugely valuable in terms of finding another job so you should factor it into any discussions. Note though that this option will not be available in some professions such as teaching or medicine. Your employer will be obliged in some cases to give a truthful reference even if you don’t like it.

Failure to provide a reference might amount to discrimination or post-termination victimisation but again what use is a legal claim when what you need is a job?

If you’ve secured an agreed standard reference as a term of a COT3 or settlement agreement and your ex-employer refuses to deliver on this you should contact Acas in the case of the COT3 and your solicitor in the case of a settlement agreement. This will have been included as a contractual term and your employer is obliged to comply with it.