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Providing References for Former Employees

How much information can you reveal about a former employee if you are called for a reference? How much information should you reveal? The following general rules should be considered in responding to any reference inquiry.

1. Always be cautious in providing information about any employee. Ask that the request for information be made in writing and always respond in writing.

2. If an employee has an excellent record, give a positive recommendation, but do not overstate an employee's qualifications or performance record. Also, do not try to gloss over performance problems.

3. Reveal any gross misconduct of which you are certain the employee is guilty, but only reveal information which you know is true and can be verified.

4. If there is any question about what information should be provided, err on the side of providing less information rather than more.

In Indiana, an employer may not prevent an employee who has been discharged from obtaining other employment. However, the former employer is permitted to provide a potential employer with a written, truthful statement of the reasons for the discharge. Note that the information must be provided in writing, not in an oral communication. In addition, a good rule to follow for this kind of reference is to report only those things that are recorded in the employee's personnel file and which were discussed with the employee prior to his or her being fired.

If there is no personnel file, only information corroborated by at least two witnesses should be given. Do not give your impressions of the employee - stick to specific known facts.

If you know that the employee is guilty of behavior that could endanger future coworkers or employers, you should reveal that information; if you only have suspicions, do not reveal them. For example, if employer ABC Corp. discharges employee Smith because it suspects that Smith is stealing money from ABC but that suspicion is never verified, when DEF Corp. calls ABC for a reference regarding Smith, ABC should not reveal its suspicions about Smith's conduct. However, if ABC discharges Smith because it caught Smith stealing or otherwise verified that Smith was stealing, ABC should reveal Smith's conduct to DEF, but only in writing.

If an employee quits or is planning to quit and you are called for a reference, you are protected from civil liability for disclosing information as long as the information disclosed was not known to be false at the time the information was provided.

Prospective employers should also be aware that an individual applying for employment has the right to obtain copies of any written communication received by the prospective employer from current or former employers that may affect the employee's possibility of employment. The request must be in writing and must be received within thirty days after the application of employment was made to the prospective employer.

If you are called on to provide a reference for a current or former employee, be sure to give the response in writing and to include only truthful facts. §