These written reasons can later be used as evidence at an employment tribunal. Failure to provide reasons in writing can lead to a tribunal award of up to two weeks’ gross pay.
References You may be asked to provide a reference on or after the termination of an employee’s employment, however you have no legal obligation to do so, unless the contract specifies otherwise, or you are in a regulated industry. Great care should be taken when writing a reference. You must ensure it is true, accurate and fair to avoid potential legal action by either the employee or the new employer. See the sample reference template for more information on supplying references. Template 8.1 – Letter giving a reference
Lay-offs and short-time working As an employer, you may choose to place employees on short-time working or have to lay off all or some employees, should a situation arise where there is a shortage of work. However, if you lay off employees without any contractual provision, this will be a breach of contract unless you are able to demonstrate that you are able to assert this right via custom and practice (even if you have an ‘agreement’ this will still need to be referenced in contract). It would be constructive dismissal if the employee resigned in response to such a breach (and they may be then able to claim a redundancy payment).
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