Employment Guide · 2026/27
UK Employment References: What Employers Can and Can't Say
There is no general legal duty to give a reference at all — but if an employer does give one, strict rules on accuracy and fairness apply. This guide explains basic vs detailed references, the legal risks for employers, and what to do if you get a poor or refused one.
No General Duty to Give a Reference
Outside of certain regulated sectors, a former employer is not legally required to provide a reference for an ex-employee at all, even a good one. Many employers deliberately choose a blanket policy of giving only very brief, factual references to every leaver — good, bad or indifferent — precisely to reduce their legal exposure and keep the process consistent and defensible.
If your contract of employment promises a reference, or your employer has an established custom and practice of always giving one, refusing outright could in limited circumstances be challenged — but this is the exception rather than the rule.
Basic vs Detailed References
Most references fall into one of two categories:
- Basic (factual) reference: confirms job title, dates of employment, and sometimes salary — with no opinion on performance, conduct or reason for leaving.
- Detailed (character) reference: includes commentary on performance, skills, attendance, conduct and suitability for the new role — carries more value for the new employer, but more legal risk for the one giving it.
Job applicants are sometimes surprised that a long-serving, high-performing employee receives only a basic reference — this is usually a blanket company policy, not a signal about that individual.
The Legal Duty on the Employer Giving It
Once an employer chooses to give a reference, English law imposes a duty to make sure it is true, accurate and fair, and does not create a misleading overall impression — whether through outright false statements, or through selective omission of important facts. This duty runs both to the employee being described and to the recipient relying on the reference.
A negative reference is entirely lawful if it accurately reflects genuine performance or conduct issues. What is not lawful is a reference given maliciously, one that is factually wrong, or one motivated by discrimination or victimisation — for example, marking someone down because they previously raised a grievance or a discrimination complaint.
Regulated Sectors: FCA References
Financial services is a notable exception. Under FCA rules, firms are required to respond to regulatory reference requests for individuals in certain senior or controlled functions, and must disclose specific categories of information — including certain conduct breaches and regulatory findings — for up to six years. These references cannot be limited to a bare factual statement in the way an ordinary employer's reference can.
References in Settlement Agreements
Where employment ends via a settlement agreement, it is common practice to agree the exact wording of a reference in advance, attached as a schedule to the agreement. Once agreed and signed, the employer is then contractually bound to give that reference (usually only the basic version) if asked — removing much of the uncertainty around what will be said to a future employer.
What to Do About a Poor or Refused Reference
- Ask, in writing, whether the employer has a policy of giving only basic references to all leavers.
- If you suspect a reference cost you a job offer, you can request a copy of it under the UK GDPR / Data Protection Act 2018 — the recipient employer, or in some cases the giver, may need to disclose it.
- If it is factually inaccurate, raise this directly with your former employer's HR team and ask for a correction.
- If you believe it was given maliciously, is defamatory, or relates to discrimination or victimisation, take independent legal advice on a possible negligent misstatement, defamation or Equality Act claim — these are complex and time-limited.