Are Employers Legally Obligated To Provide Employment References For Former Employees?

1. Introduction

1.1       An employment reference is an in-depth document or letter that is typically provided by a previous employer or supervisor. It offers invaluable and detailed insight into a professional's work performance, skills, abilities, and suitability for a new job role. Employment reference is a powerful tool for employers to verify the information provided by candidates and make informed hiring decisions. It ensures whatever the candidate has mentioned in their resume is true, and their past employer can back that information.¹

1.2       Given the significant role employment references play in the recruitment process, they have become an important consideration for both employers and employees. Prospective employers often rely on references to assess the credibility, competence, and professional conduct of candidates before making hiring decisions or even confirming an employee after the stipulated probation period in the employee’s employment contract. Consequently, the availability or otherwise of a reference may have a direct impact on an individual's ability to secure future employment opportunities.

1.3       More often than not, situations have arisen where employers are indecisive about issuing a reference or certificate of employment in favour of a former employee; and the former employee, on the other hand, is in the middle of losing an employment prospect because of the inability or the refusal of the former employer to issue a reference or a certificate of employment as the case maybe. In some instances, the refusal may stem from unresolved disputes between the parties, internal company policies, concerns about potential liability arising from the contents of the reference, or simply a misconception that an employer owes no obligation whatsoever to a former employee after the employment relationship has ended.

1.4       Interestingly, the Labour Act 1971 (“the Act”),² which governs employment relationships involving general workers, focuses predominantly on matters relating to the termination of employment and the payment of wages. It does not expressly impose an obligation on employers to issue character references, certificates of employment, or certificates of service upon the cessation of employment. The only provision remotely akin to such an obligation relates to apprenticeship. Specifically, the Labour Relations subsidiary legislation made pursuant to the Act provides that an employer shall issue a certificate of proficiency to an apprentice who has successfully completed the apprenticeship, having regard to the apprentice's level of competence.³ This limited provision exposes an apparent legislative lacuna, as the process of obtaining an employment reference or certificate of employment upon exiting an employment would have been considerably more straightforward had the Act made express provision for the same.

1.5       This therefore raises important legal and practical questions. Is an employer under a duty to provide a reference or certificate of employment to a former employee? If such a duty exists, what is the nature and extent of that obligation? Conversely, where an employer elects to provide a reference, what standards of accuracy, fairness, and objectivity must be observed? These questions become even more pertinent where the absence of a reference has the potential to hinder a former employee's career progression and livelihood.

1.6       This article examines the legal position regarding employment references and certificates of employment, the circumstances under which an employer may be obligated to issue them, and the implications of a refusal to do so. It also considers the competing interests of employers and employees and the need to strike a balance between protecting legitimate business concerns and safeguarding the future employment prospects of former employees.

2. Is there a Legal Duty to Provide Reference?

2.1       The Statutory Provision under Nigerian Law

2.1.1    The primary legislation regulating employment relationships in Nigeria is the Labour Act. As earlier stated, a careful review of the provisions of the Act reveals that there is no general statutory obligation requiring employers to issue employment references to former employees upon the termination of the employment.

2.1.2    The Act extensively regulates matters such as contracts of employment,⁴ wages,>⁵ termination,⁶ working conditions,⁷ etc. However, it does not expressly mandate employers to provide a favourable recommendation or a recommendation at all to former employees. As a result, an employee seeking to compel a former employer to provide a reference may face significant legal bottlenecks in the absence of a contractual or policy-based entitlement.

2.2       Judicial Attitude towards Employment References

2.2.1    Notwithstanding the fact that Nigerian legislation does not generally require employers to provide references, parties are free to create such obligations through contractual arrangements. An employment contract, staff handbook, workplace policy may expressly provide that an employee should be entitled to a reference letter upon the termination of the employee’s employment.

2.2.2    Where such provisions are made, the employer is contractually bound to comply with them. This position is very consistent with the well-established principles laid down by several judicial authorities that parties are bound by the terms of their agreement and generally, courts enforce contractual obligations voluntarily executed by employers and employees.

2.2.3    In the case of U.B.N. v Soares⁸the Court of Appeal held that parties are bound by the terms of a contract of employment, particularly where the terms are clear and unambiguous. And in another case of Skye Bank Plc v Adegun,⁹the Supreme Court emphasized that where parties have entered into agreement voluntarily and there is nothing to show that such agreement was obtained by fraud, mistake, deception or misrepresentation, they are bound by the terms of the agreement.

2.2.4    In light of the above, it is clear that the courts have consistently upheld the sanctity of contracts. Consequently, while there is presently no reported Nigerian decision imposing a general duty on employers to provide references, the legal principles governing contractual obligations, negligence and good faith offer useful guidance. Therefore, where an employer has undertaken to provide a reference, the courts will enforce that obligation.

2.2.5    In jurisdictions such as England, whose common law has been of persuasive effect on Nigeria’s jurisprudence, the courts have recognized that while an employer is generally under no obligation to provide a reference, once it opts to do so, it assumes a legal duty to exercise reasonable care in the preparation of that reference. In the case of Spring v Guardian Assurance Plc,¹⁰ the House of Lords emphasized that an employer who provides a reference in respect of an employee to a new prospective employer owes a duty of care to the employee in respect of preparation of the reference. The Court further stated that if the employer breaches this duty, they are liable in damages for economic loss.

2.2.6    In another case of Bartholomew v London Borough of Hackney,¹¹ the English Court of Appeal reaffirmed that while employers owe a duty of care when providing references, that duty does not require them to suppress genuine concerns about an employee’s conduct or performance. Rather, the reference must be in substance true, accurate and fair, and must not give a misleading impression.

2.2.7    Accordingly, where an employer deliberately includes inaccurate information or fails to verify allegations before communicating them to a prospective employer, liability is likely to arise if the former employee loses an employment opportunity as direct consequence.

3. Industry-Specific Requirements

3.1       As already established in the preceding paragraphs, Nigerian legislation does not impose an obligation on employers to provide references. However, the practical realities within certain regulated industries have made employment references almost indispensable. In the financial sector such as the banking industry, references generally form part of the “fit and proper” assessment conducted before employment appointments are formally confirmed.  

3.2       This practice is regulated by the Banking and other Financial Institutions Act¹² (“BOFIA Act”). BOFIA Act specifically provides that “any person whose appointment with a bank has been terminated or who has been dismissed for reasons of fraud, dishonesty or convicted for an offence involving dishonesty or fraud shall not be employed by any bank in Nigeria.”¹³ The effect of this is that any individual whose name is listed in the black book is barred from holding any employment within the financial system in Nigeria.¹⁴

3.3       The implication of this provision is that prospective employers within the banking sector must necessarily ascertain whether an applicant falls within any of the categories prohibited under the BOFIA Act before confirming an appointment. Consequently, employment references and background verification have become critical components of the recruitment process, serving as mechanisms through which financial institutions assess an applicant's integrity and employment history. In effect, while the obligation may not arise as a matter of general employment law, industry-specific regulatory requirements make employment references an indispensable aspect of recruitment in the banking sector.

3.4       It is worthy of note that comparable practices are observable within the security services, aviation industry and other regulated professions where integrity, public confidence and regulatory compliance are of paramount importance.

4. Recommended Best Practices for Employers

4.1       Given the potential legal implications and liabilities that may be associated with employers’ references, the following practices are recommended for employers:

4.1.1    Firstly, employers should consider expressly addressing the issue of employment references in their contracts of employment, staff handbooks, or workplace policies. Where the parties intend that an employee will be entitled to a reference upon the termination of employment, the conditions governing the issuance of such reference should be clearly set out.

4.1.2    Employers must ensure that all references are true, accurate and fair, and must not give a misleading impression. Where controversial matters are included, they should be presented fairly and properly supported with the employment history of the employee.

4.1.3    It is very important that employers retain copies of all references issued together with all documents relied upon in preparing them. These records may become very useful in the event that the contents of the reference become the subject of litigation.

4.2       By adopting these practices, employers can minimise exposure to legal claims while promoting transparency, fairness and professionalism within its overall employment structure.

5. Recommendations for Legislative Reform

5.1       The absence of any statutory obligation requiring employers to provide employment references has created difficulties for both employers and employees. It is recognized that while imposing a blanket obligation on employers to issue detailed character references may be impracticable, there is merit in considering limited legislative intervention.

5.2       In the light of the foregoing, it is respectfully recommended that the Labour Act be amended to require employers to issue basic employment reference following the termination of an employee’s employment. This will ensure that former employees are able to demonstrate their employment history when seeking new employment opportunities.

5.3       Additionally, legislative or regulatory guidelines governing the preparation of employment references would provide greater certainty regarding employers' obligations and the applicable standard of care.

6. International Labour Standards and Employment References

6.1       The International Labour Organization ("ILO") is principally concerned with promoting fair labour practices and advancing international labour standards that protect employees' rights, including measures aimed at preventing practices that may unjustifiably prejudice a worker's future employment prospects. The ILO standards recognize the importance of protecting an employee’s dignity and facilitating their continued access to future employment.

6.2       In particular, the ILO’s Termination of Employment Convention, 1982 (No. 158)¹⁵ and the accompanying Termination of Employment Recommendation, 1982 (No. 166)¹⁶ do not impose an obligation on employers to provide references for their former employees. However, Recommendation No. 166 encourages employers, upon request, to furnish former employees whose employment has been terminated with a certificate indicating the dates of employment and the type of work performed. It further provides that, at the request of the worker, the certificate may also include information relating to the worker's pay and the quality of the worker's performance and conduct.

6.3       It is noteworthy that neither Convention No. 158 nor Recommendation No. 166 above creates a legally enforceable obligation on Nigerian employers to issue employment references. Nevertheless, these instruments remain persuasive. By virtue of section 254C(1)(f) (h) of the Constitution of the Federal Republic of Nigeria 1999(as amended) the National Industrial Court of Nigeria has the jurisdiction to apply international best practices and have due regard to international labour standards in matters relating to labour and employment. Accordingly, while international labour standards may not compel employers to issue references, they provide useful guidance in interpreting employers' obligations and promoting fair labour practices.

6. Conclusion

6.1       The legal position in Nigeria remains that employers are generally under no statutory obligation to provide employment references to former employees. However, where an employer undertakes to provide a reference through an employment contract, staff handbook, or workplace policy, that obligation becomes contractually enforceable. Similarly, where an employer voluntarily issues a reference, it must be prepared honestly, fairly, and with reasonable care.

6.2       Given the importance of employment references in today's labour market, employers should adopt clear policies and ensure that references are accurate, balanced, and objective. Doing so not only minimises legal risks but also promotes fairness and professionalism in employment relations.

Footnotes

^{1   HiPeople, “Employment Reference” (https://www.hipeople.io/glossary/employment-reference) accessed on 18 June 2026.}

^{2    See, the Labour Act, CAP L1, Laws of the Federation of Nigeria (LFN) 2004 available at (https://nelex.gov.ng/documents/LABOUR_ACT.pdf) accessed on 30 June 2026.}

^{3    See, s4(1)(2), Labour Regulations, LN 38 of 1936, made under s88 of the LA.}

^{4  See, LA 1971 s9.}

^{5  See, LA 1971 s15.}

^{6  See, LA 1971 s11.}

^{7  See, LA 1971 s13.}

^{8    [2012] 11 NWLR (Pt. 1312) 550, 571 @ paras. B-C.}

^{9    [2024] 15 NWLR (Pt. 1960) pp 42-43, @ paras G-B.}

^{10   [1994] UKHL 1994 available at (https://www.lawteacher.net/cases/spring-v-guardian-assurance.php) accessed on 30 June 2026.}

^{11  [1999] IRLR 246 available at (https://www.lexisnexis.co.uk/legal/commentary/harvey-on-industrial-relations-and-employment-law/division-aii-contract-of-employment/b-true-accurate-fair) accessed on 30 June 2026.}

^{12  CAP B3 LFN 2004.}

^{13   BOFIA 2020 s48(3).}

^{14   Dentons Acas-Law, “Is an Employer Under Obligation to Give Employment Reference to an Ex-employee” (https://www.dentonsacaslaw.com/en/insights/articles/2024/march/18/giving-reference-letters-to-employees) accessed on 30 June 2026.}

^{15   UNHCR, “Termination of Employment Convention, 1982” available at (https://www.refworld.org/legal/agreements/ilo/1982/122499) accessed on 7 July 2026.}

^{16   UNHCR, “Termination of Employment Recommendation, 1982” available (https://www.refworld.org/legal/resolution/ilo/1982/en/122541) accessed on 7 July 2026.}

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