Case Law: Employer liable for loss of earnings resulting from reference

The case of Bullimore v Pothecary Withan Weld Solicitors and another (UKEAT/0189/10) has highlighted the potential risks incurred by providing a bad reference.

Ms Bullimore placed a claim after discovering that her previous employer had provided a very poor reference to her new employer. The new employer withdrew the offer of employment after receiving the reference which informed them that Ms Bullimore had raised a sex discrimination claim against them, was inflexible and had a poor working relationship with the firm's partners.

The Employment Appeal Tribunal held that the previous employer was liable for Ms Bullimore's future loss of earnings.

This case highlights the importance of ensuring managers are aware of potential consequences of the references they provide. In most circumstances, the safest option is to provide factual reference which only confirms the dates they have been working for the company. The reference should also state that it is company policy to provide factual references (to prevent a future employer drawing negative conclusions).

Please contact Empire HR if you would like advice and support with writing a reference.