Neutral reference

A neutral reference clause is a provision in an employment separation or settlement agreement where the employer agrees to provide only basic information about a former employee, typically limited to dates of employment and job title, without any positive or negative commentary. This clause is intended to prevent reputational harm and ensure impartiality during future employment verifications.

15 Neutral reference examples

  • Description
    A neutral reference shall mean that prospective employers will be advised only as to the dates of the Executive’s employment, the Executive’s most recent job title, and the Executive’s last salary. The Executive agrees to direct all such requests for references to the Company’s Vice President, People.
    Document
    BM Technologies, Inc. (BMTX, BMTX-WT)
  • Description
    Neutral Reference. In consideration of all of Employee’s agreements and obligations herein, the Company agrees to provide a neutral reference in relation to any inquiries regarding Employee from prospective employers. This neutral reference will include dates of employment and position(s) held.
    Document
    Torrid Holdings Inc. (CURV)
  • Description
    Neutral Reference. If asked, AWC will provide a neutral reference/employment verification to any prospective employer, which shall be limited to Dunston’s job title, final rate of pay, and dates of hire and separation (without characterization of separation reason).
    Document
    AMERICAN WOODMARK CORP (AMWD)
  • Description
    NEUTRAL REFERENCE - In the event that Employee seeks to provide verification of his employment with Citizens to a potential or future employer, Citizens agrees that it will provide a neutral reference including only the dates of employment and last position held with Citizen.
    Document
    CITIZENS, INC. (CIA)
  • Description
    Neutral Reference. For reference inquiries directed to Human Resources, the Company shall provide a neutral reference regarding Employee’s employment, including Employee’s position and dates of employment and base pay. Company will not respond to, nor is it responsible for, reference inquiries or responses to such inquiries not directed to Human Resources.
    Document
    FRANK'S INTERNATIONAL N.V. (XPRO)
  • Description
    References The Company agrees to abide by its neutral reference policy with respect to inquiries from potential employers about you. You agree to provide any potential employer with proper contact information for the ALCS Human Resources Department. Pursuant to the neutral reference policy, with respect to such inquiries, the Company will provide only your dates of employment and last position held.
    Document
    ALTRIA GROUP, INC. (MO)
  • Description
    Mutual Non-Disparagement/Neutral Reference. Employee agrees the Employee will not make any statements, either verbally or in writing, directly or indirectly, with the effect or intent of defaming, disparaging or criticizing Company. Employee acknowledges that compliance with this Paragraph is a material aspect of this Agreement, and that breach of this Paragraph by Employee will result in forfeiture of the consideration provided for in Paragraph 1 above. Company agrees that none of its managers or directors will make any statements, either verbally or in writing, directly or indirectly, with the effect or intent of defaming, disparaging or criticizing Employee. If asked for an employment reference regarding Employee, Company’s Human Resources representative will simply confirm fact of and dates of employment and position held.
    Document
    SYNALLOY CORP (ACNT)
  • Description
    Neutral Reference. The Company agrees to provide a neutral reference regarding Executive’s employment with the Company. The Company shall state only Executive’s position, compensation, Separation Date and that Executive left the Company based on his decision to retire.
    Document
    BLUCORA, INC.
  • Description
    Neutral Reference: In response to prospective employers inquiring about you, Key will follow its neutral reference policy through its vendor wherein only dates of employment and last position held will be provided.
    Document
    KEYCORP /NEW/ (KEY, KEY-PI, KEY-PJ, KEY-PK, KEY-PL)
  • Description
    Neutral Reference. Employer will provide references for Executive consistent with its neutral reference policy, which is to confirm Executive’s dates of employment with Employer and title during the period of employment. Employer’s outside vendor “The Work Number” provides employment verifications.  A prospective employer can access The Work Number by calling [**********] or via the Web at:  [**********]. 
    Document
    TAPESTRY, INC. (TPR)
  • Description
    Nondisparagement; Neutral Reference. You agree not to make any disparaging or negative comments about the Company, its business, products, services, officers, managers, contractors or employees. The Company agrees to instruct your manager not to make any disparaging or negative comments about you. You shall direct all calls for references to the Company’s Human Resources Department, who will confirm advise a prospective employer that it is the Company’s standard policy to only verify your job title and dates of employment, and nothing more. Nothing in this Section 6 or this Agreement shall prevent you or any representative of the Company from testifying truthfully in response to a subpoena or other legal process; nor shall anything herein prevent you from communicating directly with, cooperating with, or providing information to, any federal, state or local government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice.
    Document
    Coherus BioSciences, Inc. (CHRS)
  • Description
    NEUTRAL REFERENCE FOR PROSPECTIVE EMPLOYERS: In the event that the Employee seeks to provide confirmation of his employment with the Company to a potential or future employer, the Employee shall refer the employer to the “Human Resources Department (Attn: [Redacted] of Human Resources)” at Everest, and the Company agrees that it will solely provide a neutral reference in the form of confirming the Employee’s name, job title, dates of service, and final salary (salary information only provided with the Employee’s signed authorization).  The Company agrees not to provide to any potential employer any information regarding the Employee’s termination of employment with the Company or this Separation Agreement.
    Document
    EVEREST RE GROUP LTD (EG)
  • Description
    Employer agrees to provide a neutral reference to any prospective possible employer of Employee consisting of dates of employment and position held, subject to Employee directing such prospective employer to contact Joia Thompson, in Human Resources with Employer. Employer also agrees, if requested by Employee, to pay a reasonable amount, for outplacement services through Warren Averett following the Effective Dates of this Agreement and the Supplemental Release.
    Document
    ADTRAN Holdings, Inc. (ADTN)
  • Description
    The Company will provide a neutral reference to any potential new employer, this being the position held (Chief Operating and Manufacturing Officer) and starting and ending date of employment (June 7, 2021 and December 6, 2021, respectively). Nothing in this paragraph shall prohibit you or the Company's employees from providing truthful information in response to a subpoena or other legal process
    Document
    Kiromic Biopharma, Inc. (KRBP)
  • Description
    That upon receiving a request from a prospective employer of Employee, the Company will give a neutral reference that will inform the prospective employer of the dates and positions of Employee’s employment with the Company.
    Document
    Tilray, Inc. (TLRY)

What is a Neutral Reference?

A neutral reference is a term used in employment practices that refers to a very basic form of employment verification provided by an employer. It usually includes minimal information such as the dates of employment, position held, and sometimes the final salary or hourly pay rate. Neutral references do not include any subjective commentary or additional details about the employee’s performance or conduct.

Neutral references are often given to avoid potential legal risks associated with defamation or discrimination claims that can arise from more detailed references. The practice helps employers maintain a low-risk profile, ensuring that the information shared does not unintentionally damage a former employee’s reputation or hinder their future employment opportunities.

When should I use a Neutral Reference?

Neutral references should typically be used when:

  • Company Policy: Your company has a specific policy to provide only neutral references for all outgoing employees to maintain consistency and reduce liability.
  • Potential Legal Liability: There is a concern about potential legal implications. Providing more detailed references could open the company up to claims if the information is perceived as false or biased.
  • Disputed Departures: The employment ended on contentious terms where discussing performance or behavior might invite conflict or legal challenges.
  • Employee Requests: If the former employee specifically requests a neutral reference, respecting this choice can prevent issues with privacy or unfair treatment.
  • Lack of Performance Records: In situations where there is insufficient documentation to support detailed feedback, a neutral reference is safest.

How do I write a Neutral Reference?

To write a neutral reference, follow these guidelines:

  1. State Facts Only: Provide only verifiable and objective information such as:

    • Employee’s Full Name
    • Employment Start and End Dates
    • Job Title
    • Possibly the Final Salary or Hourly Wage
  2. Avoid Subjective Comments: Do not include any opinions or remarks regarding the employee’s quality of work, behavior, or personal traits.

  3. Be Consistent: Use the same format and level of detail for all employees to avoid discrimination or favoritism claims.

  4. Use Standardized Templates: When possible, use or develop a standard template to ensure uniformity and reduce subjective input.

  5. Documentation and Authorization: Ensure you have proper authorization to release the information and document the release properly for your records.

Example Neutral Reference:

To Whom It May Concern,

This letter is to confirm that [Employee’s Name] was employed at [Company Name] from [Start Date] to [End Date] as a [Position]. During this time, [Employee’s Name] worked under the terms and conditions of their hire.

Please contact our HR department at [Phone Number or Email] for any additional verification required.

Sincerely,
[Your Name]
[Your Position]
[Company Name]

Which contracts typically contain Neutral References?

Neutral references are typically associated with:

  • Severance Agreements: Outlines that only neutral references will be provided as part of the agreement terms for mutually ending employment.
  • Settlement Agreements: Closed as part of resolving employment disputes, providing neutral references may be a negotiated term to satisfy both parties.
  • Non-disclosure or Non-disparagement Clauses: Implicitly enforce a neutral reference approach to avoid negative comments about former employees and vice versa.
  • Employment Verification Policies: Internal policies that dictate how personnel files and employment details can be shared with external parties.

These contracts ensure that both the employer and the employee are clear on what type of reference will be shared, thereby mitigating any misunderstandings or legal actions post-employment.

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