One of my more difficult client-management tasks is convincing employer clients to provide positive references . Now, the courts are clear that ...
. Now, the courts are clear that there is no obligation to provide any reference at all. But there are consequences, including legal ones, for failing to do so.
Second, the failure to provide a deserved letter of reference can be viewed by the court “as an act of bad faith” as one judge put it and, usually with other employer conduct, can lead a court to award additional bad faith damages on top of damages for wrongful dismissal. As the Ontario Court of Appeal put it: “There is no legal obligation on an employer to provide a letter of reference. However, a threat to withhold a letter of reference by the employer as part of a negotiation/litigation strategy may, in some situations, provide valuable support for an employee’s subsequent claim that a release was unconscionable and should not be enforced.”
Most Canadian employers these days do provide references, at least in name, but they are actually letters confirming employment or “tombstone references,” simply stating the employee’s position and length of service with nary a compliment strewn in. This is not much better than no reference at all and might suggest to a future employer that there is nothing good that could be said about that employee.
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