by Tabitha Wellman, CEO, Innova Business

When an employee leaves your employment, it can be very tempting to give in to their request for a written testimonial of their employment.  But before you do STOP!  It could cost you more than you think!

Often we feel that it’s a nice thing to do for our employees by giving them a written reference – after all they’ve been pleasant enough throughout their time with us.  But even when an employee leaves of their own volition, there can still be legal implications that may arise once they’ve left, that you’re not aware of. 

Suddenly, your nice parting gesture of a written reference provides your ex-employee great leverage in a law suit against you – whether it’s completely unfounded or not.

Unfortunately in this day and age, you should never give a written reference to anyone that leaves your employment.  So what do you do when an employee asks you for a testimonial?

Here’s a three step process that you can follow:

1)Firstly, you should have a standard termination process that you follow to the letter of the law each and every time an employee leaves.  This means that there is a prescribed procedure, complete with standard templates, that both you and your team follow in any instance of termination.

2)Offer your ex-employee a “Separation Certificate”.  This Certificate can be printed as a letter on your letterhead, and simply and briefly outlines their employment history with you. 

They can then use this document for social security, employment records or as proof of employment when applying for a future position with another company.

3)Offer that in addition to the Separation Certificate, you would be happy to be a verbal referee.  You could also explain that most employers actually prefer to speak to a previous employer, rather than read a testimonial.

So what does a Separation Certificate look like? 

Here’s a quick template for you to use and incorporate into your termination process:

To Whom It May Concern:

[ENTER EMPLOYEES FULL NAME] of [ADDRESS], was employed by [ENTER YOUR COMPANY NAME] in the capacity of [ENTER POSITION] on [ENTER DATE OF EMPLOYMENT].

His/Her employment with [ENTER YOUR COMPANY NAME] ceased on [DATE], and he/she was paid up until [DATE].

[ENTER EMPLOYEES FULL NAME’s] salary was $[ENTER SALARY] per annum.

Then sign off on the letter with your signature, date, name and title.

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