Critically evaluate, in relation to the common law duty of care, the Essay - 6

Critically evaluate, in relation to the common law duty of care, the liability of employers for references. How, if at all, doe - Essay Example Issuing of references for employees or former employees by employers is a practice that is of interest to both the employer and the employee (Middlemiss 2013, p141). The employers have an interest in understanding the extent of their liability. On the other hand, the employees have an interest in knowing whether they have the right to sue employers for economic damage arising from unjust references. In understanding the liability of employers for references, the paper will look into the relevant principles of the law by reviewing cases related to the subject in question (Lee 2011). Case studies Spring v Guardian Assurance plc and others The spring v Guardian Assurance plc and others led to the realization of the importance of pursuing acts of negligence through unjust and unfair references. Before this realization, employees who suffered from unjust references only used the tort laws to search for justice (House of Lords 1995). The option of the tort laws was not common due to the ev idential obstacles that the plaintiff faced. In the Spring v Guardian Assurance plc and others, the House of Lords came to a conclusion that, in situations where an employer decides to give a current or former employee a reference, it is the employer’s responsibility to take reasonable care in preparing or issuing the reference. It is also the employer’s responsibility to take care when verifying the information related to the reference. In addition, the House of Lords also concluded that, in situations where an employer issues a reference to a prospective or future employer, it is the employer’s responsibilities to provide care to that the employer in respect to the preparation of the reference. It further states that, in cases where a break of any of the duties occurs due to negligence in preparing the reference, the employer issuing the reference can be held responsible for damages to the employee, prospective employer or future employer (UKHL, 1994). The emp loyer issuing a reference has the responsibility to act in a fair manner towards the employee to protect the employee from suffering from economic losses due to negligence in issuing the reference. The employer also has a duty of care towards the employer receiving the reference because the recipient employer relies on the reference information in providing employment to the subject of the reference (McBride 2004, p.420). Therefore, the employer’s decision to employ the employee is largely influenced by the information provided on the reference. This point makes it reasonable to hold the employer issuing the reference responsible for any economic damage that the prospective employer suffers (Middlemiss 2004, p.67). In another example, it was concluded in the Legal Assurance Ltd v Kirk that, in a situation where an employer makes an informal statement regarding an employee that is not relied on by a third party, there is no liability due to negligence even if there is no any r eference issued. However, this claim was not accepted by the Court of Appeal because it was based on speculations on how the employer might respond when requested for a reference (Middlemiss 2004, p62). A different approach in understanding the liability of employers for reference is evident in Bartholomew v London Borough of Hackney. In this case, an employer issuing