A simple guide to writing a reference for an employee (including lawyer-drafted template)

1. What is a reference letter for an employee?

A reference letter for an employee, also known as a job reference, is a summary provided to their new or prospective employer, outlining details of their time with a company. It should offer an overview of their role and time spent at the company. If the reference is detailed, it may also contain information relating to the employee's salary, job performance, skills and/or character.

While there’s no strict formula for writing a reference for an employee, it’s important that the information you provide is factual, unbiased, and supported by evidence.

2. Types of reference

Typically, job references come in two forms, each serving a different purpose. However, some references may include elements of both:

1. Work reference (professional or factual)

A work reference focuses on the individual’s professional experience, job performance, and specific skills in the workplace. It provides an objective account of the employee’s role, responsibilities, and achievements within the company. For example, a work reference might outline the employee's ability to meet deadlines, competency in handling complex tasks, or proficiency in a particular skill set, such as project management or technical expertise.

Example:

During his time at OldCo Ltd, Thomas consistently achieved his annual sales target whilst overseeing a team of 15 sales executives. He also managed several client projects that resulted in a 30% revenue increase for our business during 2024.

2. Character reference

A character reference, on the other hand, provides insight into the individual’s personal qualities, values, and traits. This type of reference tends to focus on the employee's interpersonal skills, work ethic, and how they interact with others, both within and outside the workplace. It may include details about the individual’s integrity, reliability, and positive attitude, as well as their ability to work as part of a team or handle pressure.

Example:

Thomas is a joy to work with, always bringing endless positivity and energy to the office each day. From what I understand, he has mentored several of his team members and gone out of his way to ensure they feel supported and heard. He is highly respected by many and maintains a brilliant sense of optimism, even in challenging times.

Including both types of references in a job reference letter can provide a comprehensive view of the individual’s professional and personal strengths. However, some employers may only request one. As a previous employer, you can choose whether to offer a more in-depth and well-rounded reference covering both their capabilities and character.

3. Are employers legally required to provide a reference for an employee?

No, unless an employer has agreed to provide a reference (e.g., in writing in the employee’s employment contract or settlement agreement), they are generally not legally required to do so. However, some employers may be obligated to provide a reference due to industry regulations, such as those set by the Financial Conduct Authority for certain sectors.

For answers to more frequently asked questions about writing a reference for an employee, read this blog.

4. Key elements to include when writing a reference for an employee

Writing an effective reference for a former employee involves including key information that paints a complete and accurate picture of the employee's time with your organisation.

At a minimum, your reference should include:

• Employee’s Name: Clearly state the full name of the employee you are providing the reference for.

• Job Title: Specify the employee’s official job title or position during their employment with your company.

• Employment Dates: Include the start and end dates of the employee's employment, i.e., the day they joined and left the company.

If you are writing a more comprehensive reference, you may also wish to include:

• Key Responsibilities/Duties: List the main duties and responsibilities the employee had during their time at your company. This provides insight into their day-to-day role and level of responsibility.

For example:

Managing a team of 6 sales representatives

Overseeing client relationships and handling project management tasks

• Achievements: If relevant, you can mention key achievements or contributions made by the employee. This could include sales targets met, projects successfully delivered, or other notable successes.

For example:

Led a successful campaign that resulted in a 15% increase in revenue

Won the 2024 Sales Person of the Year Award

• Annual Salary: Mention the employee’s annual gross salary if relevant or requested. This is typically included for more senior roles but is not always necessary for lower-level positions.

• Reason for Leaving: If you feel comfortable, include a brief, factual explanation for why the employee left your company, such as moving on to a new opportunity or pursuing a career change.

5. What should I avoid when writing a reference for an employee?

When writing a reference, it’s important to be mindful of what you include. Here are some key things to avoid:

• Unsubstantiated opinions – Stick to facts that you can support with evidence. Avoid making subjective comments about the employee’s performance or character that cannot be backed up.

• Discriminatory remarks – Do not mention anything related to protected characteristics, such as parental leave, sick leave, disability, age, or any other factor covered by discrimination laws. For more information about this, check out the Acas website.

• Inaccurate or misleading information - Avoid providing inaccurate, incomplete, or overly vague information that could give a false impression of the employee’s performance or character. Ensure the reference is fair and truthful to protect both the employee and your organisation from potential legal risks.

• Unnecessary details – Keep the reference clear and to the point. There’s no need to provide more information than is required, just focus on the essentials.

By keeping your reference factual, concise, and legally compliant, you can ensure it is fair and professional.

6. Legal risks of writing a negative reference for an employee

Employers in the UK can provide a negative reference for a former employee but it must be fair, accurate, and based on facts. If a reference is misleading or unfair, it could lead to legal claims made by the employee. To mitigate this risk, many companies choose to provide only factual references, limited to job title and dates of employment to avoid potential disputes.

Top tip: Always avoid personal opinions, subjective language, or anything that could be considered defamatory. Ensure everything you include is truthful, evidence-based, and balanced. Ensure that you can verify the information before finalising the reference.

You can find out more about the risks of writing a negative reference by reading these FAQs.

7. Top tips for writing a reference for an employee

When writing a reference, you want to ensure it is professional, clear, and helpful to both the employee and the recipient. Here are some top tips to consider:

• Be clear and concise - Keep your reference straightforward, focusing on the key details. Avoid adding unnecessary information or going off-topic. A clear, concise reference is more useful to the recipient.

• Be factual - Aim to highlight the employee’s strengths and positive attributes, but always back up your statements with specific examples. This makes your reference more credible and impactful.

• Stick to relevant information – Only include details that are relevant to the employee’s role and qualifications for the job they are applying for. Mention their skills, accomplishments, and qualities that will help them in their future career.

• Create a clear reference policy – Establishing a company-wide policy for writing references for an employee can help ensure consistency and reduce legal risks. Decide whether your business will provide detailed references or stick to basic factual references (e.g., job title and dates of employment). A clear internal policy also helps employees understand what they can expect when requesting a reference.

• Use a template - Using a template can help ensure consistency and that all necessary details are included. A trusted, lawyer-drafted template can save you time while helping you avoid common pitfalls when writing a reference for an employee. Docue offers a ready-to-use work reference letter template, designed to make the process quick and straightforward while ensuring your references comply with best practices.

By following these tips, you can ensure your reference is clear, professional, and useful to both the employee and the recipient. For more in-depth advice, read our legal experts' six key tips for writing an employee reference letter.

Why use Docue for writing a reference for an employee?

Legally compliant and professionally drafted: Docue’s employment reference letter template is created and maintained by expert lawyers, ensuring it meets legal requirements and best practices.

Fully customisable and easy to use: Simply select from intelligent tick-box options and text-box answers to generate a tailored reference letter in minutes.

Seamless electronic signing and storage: Once completed, sign the reference electronically and store it securely using Docue Drive for easy access and organisation.

Cost-effective with transparent pricing: No hidden fees, just straightforward pricing designed to save your business time and money. Check out our pricing here.

Ready to get started? Sign up to Docue today, and see why our customers love us.