What is the risk of withdrawing an offer of employment on the basis of a detrimental verbal reference?
Firstly, the employee is not going to have unfair dismissal rights, because they are not going to have been employed for a year. The only claim they might have in reality is a claim for notice pay, and most employees who have just started will be in their probationary periods and will be on a one week’s notice. However, employers will not have to pay the notice pay if the job offer makes it clear that the job is subject to receipt of satisfactory references. In this case the employer has a very wide discretion as to what it is, and what is not, satisfactory, as long as the decision that a reference is unsatisfactory or not is not arbitrary or perverse. Tribunals and courts allow employers to make up its own mind as to what is a good reference and what is not.
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