Why references may be required for settlements
An agreed reference gives the employee certainty about what will be shared with future employers.
This can help protect their professional reputation and support future job applications.
For employers, agreeing on the wording in advance reduces the risk of disputes about what is said in a reference.
Can I Be Forced to Provide a Reference?
No, apart from certain regulated sectors, employers are not required to provide references.
If you do provide one, it must be true, accurate and fair; misleading or inaccurate information is not acceptable.
A reference provided as part of settlement discussions is considered a benefit under the Settlement Agreement.
What to consider when providing a reference
There are some things you should consider when providing a reference, for example, be aware that the Equality Act 2010 allows individuals to claim unlawful discrimination if a poor reference is given or if a reference is refused for discriminatory reasons.
A successful claim would require evidence that the treatment was linked to a protected characteristic; providing an accurate reference can help avoid unnecessary disputes.
Once agreed, the reference should be included as a clause in the Settlement Agreement.
This can be a simple statement or a specific reference attached as an annex, including a reference clause helps ensure clarity for both parties.
Including a reference as part of a settlement agreement
Employees often ask for a reference as part of a settlement agreement.
Unless you operate in a regulated industry, there is no legal obligation to provide one.
If you agree to provide a reference, it must be truthful and accurate, think about your words carefully.
Why references may be required for settlements
An agreed reference gives the employee certainty about what will be shared with future employers. This can help protect their professional reputation and support future job applications.
For employers, agreeing on the wording in advance reduces the risk of disputes about what is said in a reference.
"Can I be forced to provide a reference?"
No, apart from certain regulated sectors, employers are not required to provide references.
If you do provide one, it must be true, accurate and fair; misleading or inaccurate information is not acceptable.
A reference provided as part of settlement discussions is considered a benefit under the Settlement Agreement.
What to consider when providing a reference
There are some things you should consider when providing a reference, for example, be aware that the Equality Act 2010 allows individuals to claim unlawful discrimination if a poor reference is given or if a reference is refused for discriminatory reasons.
A successful claim would require evidence that the treatment was linked to a protected characteristic; providing an accurate reference can help avoid unnecessary disputes.
Once agreed, the reference should be included as a clause in the Settlement Agreement.
This can be a simple statement or a specific reference attached as an annex, including a reference clause helps ensure clarity for both parties.
Talk to Orwins solicitors' about settlement agreements
Including a reference within a settlement agreement is a valuable tool for both employers and employees.
Drafting from a competent solicitor is essential to ensure the reference is accurate, fair, and compliant with legal obligations, particularly where discrimination risks may arise.
