€40,000 Unfair Dismissal Award After Former Employer’s Handling of Reference Cost Worker a New Job
A recent decision of the Workplace Relations Commission highlights an often-overlooked area of employment law risk for employers: how references are handled after employment ends.
A travel company has been ordered to pay over €40,000 after the WRC found that its handling of a former employee’s redundancy and subsequent reference requests contributed directly to her losing a new job opportunity.
The case is a significant reminder that employers may remain exposed to liability even after employment has ended.
The Background
The employee had worked as a travel consultant before being made redundant in late 2024.
The employer argued the redundancy arose from declining business activity. However, the WRC criticised the methodology used to justify the redundancy selection process and ultimately found the dismissal unfair on both:
- Substantive grounds, and
- Procedural grounds.
More significantly, the case escalated because of what happened afterwards.
The Reference Dispute
After securing a new role, the employee’s prospective employer requested a standard reference questionnaire from two nominated referees within her former company.
While the former employer maintained it had a legitimate policy of only issuing:
- Statements of service; and
- Confirmation of reason for departure,
the WRC found the company failed to communicate this position clearly or promptly.
The questionnaire was left unanswered for weeks despite repeated requests.
The new employer ultimately viewed the silence and lack of engagement negatively and withdrew the job opportunity after the employee had already started work.
What the WRC Found
Adjudicator Breiffni O’Neill concluded that:
- The redundancy itself was not genuine;
- The employer failed to follow fair procedures;
- The handling of the reference process directly contributed to the employee’s extended unemployment.
Importantly, the adjudicator accepted that an employer is legally entitled to maintain a limited-reference policy.
However, the problem arose because:
- The employer failed to clearly explain its position;
- Communications were delayed;
- No timely engagement occurred.
The WRC found the foreseeable consequences of continued silence should have been obvious.
The employer was ordered to pay €40,789 in compensation.
Key Employer Lessons
1. Reference Policies Must Be Applied Clearly and Consistently
Employers are generally entitled to:
- Provide only factual references;
- Issue statements of service only.
However, delays or unexplained silence can create unintended consequences.
A clear and prompt response is critical.
2. Post-Termination Conduct Still Creates Liability
Employment law risk does not necessarily end when employment ends.
Actions taken after dismissal — including:
- References,
- Communications with future employers,
- Or failures to respond —
may still impact compensation exposure.
3. Redundancy Processes Must Be Genuine and Defensible
The WRC criticised the employer’s redundancy rationale and the approach used to assess business decline.
Employers should ensure:
- Objective selection criteria;
- Proper consultation;
- Documented business rationale.
4. Communication Failures Can Escalate Disputes
One of the strongest themes in this decision was the employer’s lack of engagement.
Even where a company has a lawful policy, failure to communicate it effectively may create legal and reputational risk.
Practical Steps for Employers
To reduce exposure:
✅ Maintain a written references policy
✅ Respond to reference requests promptly
✅ Clearly explain limitations on references
✅ Train managers on post-employment communications
✅ Ensure redundancy processes are fully documented
✅ Seek legal advice before sensitive terminations
The Bigger Message for Employers
This case reinforces a critical point:
👉 How employers handle employees after termination can be just as important as how they handle them during employment.
Delays, silence, and poor communication can significantly increase liability.
How Ormonde Solicitors Can Help
At Ormonde Solicitors, we advise employers on:
- Redundancy procedures
- Unfair dismissal claims
- Reference and post-employment policies
- HR compliance
- WRC defence and representation
Early legal guidance can help employers avoid costly procedural mistakes.
📞 Contact us today for confidential guidance.
Disclaimer: This article is for general information purposes only and does not constitute legal advice.
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