Veitch Penny LLP - Exeter | Crediton, Devon

Case

Dike v Gerald Rickman (1) Ziegler Rickman Limited (2)
Queens Bench Division - 22 November 2005

Issues

(1) Reference
(2) Duty of Care
(3) Malicious falsehood

Facts

Mr Dike was an independent financial advisor by profession. He was offered a new job subject to a satisfactory reference being received from his previous employer. His previous employer provided a reference which included comments that Dike was “a very difficult person with whom to work. We shall not be sorry to lose his services. We have received two complaints of sexual harassment from a secretary and an outside office cleaner. Mr Dike has been cautioned for both complaints which he denied. No further action was resulted”. The reference also commented upon Dike's compliance with the Financial Services Agency's rules and complaints about his advice.

As a result of this, the new employer withdrew its offer of employment. Mr Dike’s sued his previous employer for breach of contract and negligence in giving the unfavourable reference. He argued that the Defendants had breached the duty of care towards him in the reference and that they had acted to his detriment.

Decision

Ultimately Mr Dike's claims were unsuccessful. Whilst Mr Dike took exception to a number of the statements made in the reference, the High Court Judge found the comments to be “justified”. Mr Dike had not been able to prove that the reference was inaccurate, misleading, unfair or untrue.

Comments

This case reminds employers that they must give a fair balanced view when providing references. In this case Mr Dike seems to have been difficult to work with, but those comments should have been balanced with positive points about him. Likewise, merely making positive comments without mentioning, say, if an employee had been dismissed for sexual harassment would also not give the required balance to the reference and would be misleading to a future employer.

Whilst an employer is not obliged to provide a reference, failing to do so (particularly where references have been given in the past), or giving of an adverse reference, could in certain circumstances lead to a claim of post-employment discrimination or victimisation.

Rachel Billen - Associate Solicitor, Commercial Department at Veitch Penny.
Tel: 01392 278381, Fax: 01392 410247, Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

This Employment Law Update does not constitute legal or other professional advice and should not be relied on as such. You should take specific advice regarding your circumstances before taking any action based on the information contained within this Update.