Referencing - legal liability

[ChuffingHell]

I have been asked by am employee to provide a reference to a letting agency, detailing length of employment, position and salary in relation to a property she wishes to rent. She has asked me to state that she earns more than she actually does (roughly 30% more). She is also due to go on maternity leave later this year and has asked me to state that she will receive more maternity pay than she actually will (the company operates a statutory maternity policy).

I'm not happy about doing this but she is an adult so is old enough to make her own decisions about what she can and cannot afford. I also know nothing about her partners' career status so can't comment on their overall financial situation and wouldn't want them to miss out on a property unnecessarily.

The ethics of this and the potential impact on the Company's image are something that needs to be considered seperately but my question is from a Company legal point of view, does anyone know whether the business could be held liable for providing false information?

[hayley2956]

Im not sure of the legal liability but surely there must be an impact on you for lying. I mean does your employee not realise what she is making you do in lying for her??? Thats putting you in an uneasy position (obv as u posted the q) and putting pressure on you.
You say she is an adult and sure that she knows what she can afford, but surely if she can afford it why is she making you lie about how much she earns??? also, how bad would you feel if the employee couldnt make the payments on the rented house and really only got the house and this situation because you lied for her.
My advice to you is to sit down and tell her that you dont feel comfortable lying on the reference for your own personal and the companies reputation. Both of which would be jeopardised.

hope this helps x

[Peter Pedant]

well, the leading case is/was Hedley Byrne and Heller, and it concerned liability for negligent misstatement - in a reference coincidentally
and surprise surprise, the referee was found responsible for losses

That is in my opinion you become liable for the landlord's losses.


The only issue is whether you or your company would be liable, and i think the law has changed appreciably over the last 30 yrs and it used to be you and now it is the company

SOmeone can improve on this

The only other thing is that Hedley etc was about negligent misstatement and your would be an intentional mistatement ...so is your case distinct from H ? Well it might be, but more so if you get my meaning - that is it is a different case but you would still be liable

SO it is easy for you:
tell your employee - the law says I cant
or if you are in a talky mood - the law says I cant because I make myself liable for any losses the landlord suffers.



pp