Employers that provide references for former employees may be sued for negligent misstatement if the reference is found to be inaccurate. Employers should therefore take reasonable care to ensure that references are not misleading due to omitted information or the inclusion of facts which, although accurate when viewed discretely, either through nuance or innuendo generate a misleading picture when considered overall.
A recent case regarding a claim of unfair dismissal was appealed on a point of law from the Labour Court to the High Court. The Labour Court decided that an employee should have been advised by her employer in advance of signing a fixed-term contract of the effect that the contract would have on her contractual status as an employee. It held that it was insufficient for the employer to simply rely on the fact that the contract had complied with the Unfair Dismissals Acts.