Work Reference Letters In New Zealand: What Employers Should Include And Avoid

At some point, one of your team members (or a former employee) will ask you for a work reference letter.

For a small business owner, this can feel like a “simple admin task” - until you stop and think about what you’re actually being asked to do: put something in writing that may influence someone else’s hiring decision, and that could be relied on later.

The good news is that a work reference letter doesn’t have to be complicated. If you approach it in a structured way, you can support your people and protect your business from unnecessary legal risk.

Below, we walk through what to include in a work reference letter in New Zealand, what to avoid, and a practical process you can use internally so your references are consistent, fair, and low-drama.

Why Work Reference Letters Matter For Small Business Employers

A work reference letter is more than a courtesy. For many employees, it’s a key document they’ll use to secure their next role (especially if they’re applying for a visa, rental property, professional registration, or a role that requires strong proof of employment history).

From your perspective as an employer, a well-written reference can:

• Strengthen your reputation as a fair, professional workplace (good people notice how you treat staff on the way out).
• Reduce back-and-forth phone calls from prospective employers - a clear letter often answers the basics.
• Create consistency across your business (especially if you have multiple managers writing references).
• Help you manage risk by keeping the reference factual, accurate, and aligned with your records.

It also ties into your broader employment paperwork. If your roles and expectations are clearly set out in an Employment Contract, it’s much easier to describe an employee’s position accurately and consistently later.

What Laws And Risks Apply To Work Reference Letters In New Zealand?

There isn’t one single “reference letter law” in New Zealand. Instead, a work reference letter sits at the intersection of a few key legal and practical risks.

Here are the big ones to keep on your radar.

Privacy And Personal Information (Privacy Act 2020)

A reference letter contains personal information about an identifiable individual. In many cases, the employee is requesting it - but you should still treat it as sensitive and handle it carefully.

Practical privacy tips:

• Only include information that’s relevant to the purpose of the reference.
• Keep the letter secure (don’t leave it sitting in a shared drive with open access).
• Send it to the right person (double-check email addresses).
• If you keep a copy, store it with your employee records and retention practices.

If your business collects and stores employee or candidate information (which most do), having a clear Privacy Policy and internal privacy practices makes it much easier to show you’re handling information responsibly.

Defamation Risk

If a reference letter includes statements that harm someone’s reputation and those statements are not true (or can’t be justified), this can create defamation risk.

This is one of the main reasons we generally recommend:

• Stick to what you can support with facts, records, and real examples.
• Avoid emotionally loaded language (even if the exit was messy).
• Be cautious about repeating rumours, assumptions, or second-hand complaints.

Misleading Statements And Reliance

A prospective employer might rely on your reference to make a hiring decision. If the reference is materially misleading, it can create disputes later - even if your intention was simply to “be nice” and help the person move on.

A good rule of thumb is: don’t say anything you wouldn’t be comfortable defending if asked, “What are you basing that on?”

Discrimination And Irrelevant Personal Details

References should stay job-focused. If you include irrelevant personal characteristics (or comments that could be read as discriminatory), you’re increasing risk for both you and the recipient.

In New Zealand, the Human Rights Act 1993 contains prohibited grounds of discrimination. In a reference context, that means you should avoid referencing things like medical information, family status, religion, ethnicity, sexual orientation, or age unless there is a lawful and genuinely necessary reason (which is rare).

Employment Relationship Sensitivities

Work references often come up around resignations, terminations, redundancies, or settlement negotiations. If there has been a disagreement, a reference letter can unintentionally re-open issues.

In some cases, the “right” approach is to agree a neutral reference as part of an exit arrangement (for example, within a Deed Of Settlement), so everyone knows what will be said and there are no surprises later.

If you’re unsure what’s appropriate, it’s worth getting tailored advice from an Employment Lawyer before you put something in writing.

What To Include In A Work Reference Letter (A Practical Checklist)

If you want a work reference letter that’s genuinely helpful (and also safe for your business), aim for clear, accurate, role-relevant information.

Here’s a checklist you can use.

1. Who You Are And Why You’re Providing The Reference

• Your name, job title, and business name
• Your contact details (often email and phone)
• Your relationship to the employee (e.g. “I was Alex’s direct manager from March 2022 to July 2025”)

This helps the reader understand the credibility and context of your reference.

2. The Employee’s Role And Employment Dates

These are usually the most important details in a reference letter because they’re objective.

• Employee’s full name
• Job title(s)
• Employment start date and end date (or confirm they’re currently employed)
• Type of employment arrangement (for example, permanent full-time or part-time, or a fixed-term agreement) - but only if it’s relevant and you’re confident it’s accurate

If the employee held multiple roles, you can list them in chronological order. This is often helpful for showing progression and increased responsibility.

3. A High-Level Summary Of Key Responsibilities

Keep this short and aligned with the job description or what the employee actually did day-to-day.

For example:

• Customer service and issue resolution
• Scheduling and coordination
• Stock management and ordering
• Invoicing and basic reporting
• Managing junior staff and training

This avoids vague praise and gives a prospective employer something concrete.

4. Performance Strengths With Specific Examples

You can include positive statements, but they’re strongest when you tie them to observable facts.

Examples of “safe” strengths to reference include:

• Reliability: “Consistently arrived on time and met roster commitments.”
• Communication: “Communicated clearly with customers and escalated issues appropriately.”
• Attention to detail: “Maintained accurate records and followed processes.”
• Teamwork: “Supported new starters and worked well across shifts.”
• Leadership: “Trained staff and helped coordinate daily workflow.”

Try to keep it balanced and believable. Overly glowing references can backfire if they don’t match reality.

5. The Reason For Leaving (Only If Appropriate)

This is optional, and it depends heavily on the situation.

In some cases, it’s fine to include a short line such as:

• “Jordan resigned to pursue a new opportunity.”
• “Taylor relocated to another region.”
• “The role ended due to the completion of a fixed-term project.”

If the exit was contentious, you don’t have to include a reason. If you do include one, keep it neutral and accurate.

6. A Clear Closing And Invitation To Contact You

Close the letter with:

• A short recommendation statement (if you’re comfortable providing it)
• An invitation for the recipient to contact you for further details
• Your signature block

If you’re providing a “confirmation of employment” style letter rather than a character reference, you can keep the closing simple and factual.

What To Avoid In A Work Reference Letter (And Why)

Most reference-letter problems happen because employers either say too much, say the wrong thing, or include information they can’t back up later.

Here’s what to avoid if you want to keep things professional and low-risk.

1. Medical Information Or Mental Health Details

Even if you think you’re being understanding (“they had a tough year”), including health information can create privacy and discrimination issues.

If attendance or wellbeing affected work, keep it performance-based and factual (and only if it’s truly necessary and appropriate). In most cases, you’re better off not mentioning it at all.

2. Anything Discriminatory Or Personal

Avoid references to protected characteristics or personal circumstances, such as:

• Age or “maturity” comments that imply age
• Family plans (e.g. pregnancy, childcare responsibilities)
• Religion, ethnicity, nationality, sexuality, relationship status
• Political views

Even if the comment is intended as positive, it can be irrelevant and risky.

3. Exaggerations You Can’t Prove

Statements like “the best employee we’ve ever had” or “never made a mistake” are rarely accurate and can undermine credibility.

A safer approach is to use measured language that reflects real experience, such as “consistently met expectations” or “was a strong performer in X area.”

4. Surprises That Don’t Match Your Employment Records

If you’ve documented performance issues, warnings, misconduct, or serious concerns during employment, a glowing reference that ignores all of that can create issues later - for example, if you’re later asked why the reference didn’t reflect what you had recorded internally.

On the flip side, a reference that suddenly raises criticisms that were never discussed with the employee can also escalate conflict.

Consistency is key. Ideally, your reference reflects what was communicated during employment and at exit.

5. Confidential Business Information

Be careful not to disclose things like:

• Client lists or sensitive customer information
• Internal financial information
• Pricing strategies or trade secrets
• Details of disputes, complaints, or investigations that shouldn’t be shared

This is where having clear confidentiality expectations and internal policies helps. If you already maintain strong workplace confidentiality standards, it’s much easier to keep references clean and professional.

6. “Off The Record” Remarks In Writing

Sometimes employers try to include informal warnings like “call me for the real story” or coded language. This can look unprofessional, and it can still create legal risk if it implies something harmful without evidence.

If you can’t say it clearly, fairly, and support it with facts, it usually shouldn’t go in the letter.

A Simple Process For Handling Reference Requests (Without Getting Stuck)

When you’re busy running a business, the hardest part of a reference letter is often not the writing - it’s deciding who writes it, what you’re willing to say, and how to keep it consistent across the team.

Here’s a practical process many small businesses use.

1. Decide What Types Of References You’ll Provide

You can set a standard approach, such as:

• Confirmation of employment only (name, role, dates), or
• Full reference letters (including performance comments), or
• Case-by-case depending on the role, seniority, and circumstances.

There’s no one “right” answer - it depends on your industry, your risk tolerance, and how comfortable you are supporting subjective statements.

2. Centralise Who Writes And Approves References

To avoid inconsistent messaging, choose a small number of authorised people (for example, the business owner, HR manager, or a department lead).

This becomes even more important where there may be conflicts of interest - for example, if a manager had a difficult relationship with the employee. A clear Conflict Of Interest Policy can help you identify when someone should step back from writing a reference.

3. Get The Request In Writing And Confirm The Purpose

Ask the employee (or former employee) to confirm:

• Who the reference is addressed to (if anyone)
• What it’s for (a job application, tenancy, visa, study, etc.)
• Any particular points they want included (without promising you’ll include them)

This helps you tailor the letter appropriately and avoid irrelevant details.

4. Stick To A Template (But Don’t Treat It Like A One-Size-Fits-All Document)

Templates are great for structure and consistency, but the content must still be accurate and tailored to the individual.

A helpful template usually includes:

• Letter date
• Addressee (or “To Whom It May Concern” if appropriate)
• Employment overview (role, dates, reporting line)
• Key responsibilities
• Strengths/performance notes
• Closing recommendation (optional)
• Contact invitation and signature block

5. Keep A Copy And Make A Note On The File

From a risk management perspective, it’s sensible to keep a copy of any reference letter you provide, along with a note of when it was provided and (if known) to whom.

If you later face a dispute about what was said (or if someone forwards your letter around), you’ll be glad you have an accurate record.

6. Be Careful When You Don’t Want To Provide A Positive Reference

Sometimes the employee asks for a reference, but you’re not comfortable giving a positive endorsement.

In these situations, you generally have options such as:

• Providing a basic confirmation of employment only
• Agreeing to a neutral reference (especially where there was a contentious exit)
• Having the employee nominate a different referee (where appropriate)

The key is to stay professional and consistent. If you’re not sure what’s safest in your specific circumstances, it’s worth getting tailored advice before responding - particularly if there’s already an employment issue in the background.

Key Takeaways

• A reference letter should be accurate, job-focused, and consistent with your employment records.
• In New Zealand, reference letters can create risk under privacy principles (Privacy Act 2020), and also through defamation or misleading statements if you include claims you can’t back up.
• Strong reference letters usually include: who you are, the employee’s role and dates, a clear summary of responsibilities, specific strengths, and a professional closing.
• Avoid including medical information, discriminatory or personal details, exaggerated praise, confidential business information, or criticisms that were never raised during employment.
• Having a simple internal process (authorised writers, template, record-keeping) helps you stay consistent and reduces the chance of a reference causing disputes.
• If an employee’s exit was sensitive, consider agreeing a neutral reference in writing - and get legal advice before you commit to wording you may later regret.

Disclaimer: This article is general information only and does not constitute legal advice. If you need advice about your specific situation, consider speaking with an employment lawyer.

If you’d like help putting together a consistent reference process, reviewing a reference letter, or managing a tricky employment exit, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.