Most employees underestimate the value of a reference letter and its significant advantage for future prospective employment. In the current employment climate, not all employees depart employment by means of resignation or reaching the natural retirement age, but in several cases, employees are dismissed after committing the worst forms of misconduct. Employers are often left with a “sour taste in their mouths”. Thus, the idea of issuing the former employee a reference letter seems like a ridiculous favour that most employers are not willing to consider. Particularly in cases of misconduct dismissals, employers are faced with the dilemma of whether to issue parting employees with reference letters upon their termination.

Section 42 of the Basic Conditions of Employment Act (BCEA) stipulates that:

“On termination of employment, an employee is entitled to a certificate of service stating—

(a) the employee’s full name.

(b) the name and address of the employer.

(c) a description of any council or sectoral employment standard by which the employer’s business is covered.

(d) the date of commencement and the date of termination of employment.

(e) the title of the job or a brief description of the work for which the employee was employed at the date of termination.

(f) the remuneration at the date of termination.

(g) if the employee so requests – the reason for termination of employment.”

It is important to note, as per the above, that despite the reason for termination, an employer is legally obliged by law to issue an exiting employee with a certificate of service upon termination.

Furthermore, as per clause (g) above, employers are prohibited from disclosing the reason for termination of the employee in terms of the certificate of service unless the parting employee expressly requests or states that the reason for termination may be disclosed.

A reference letter, on the other hand, is defined as a written statement by the former employer stating not only the duration of the employee’s work history and positions held but goes further to state the tasks performed by the employee of the company.

A reference letter may also include the positive attributes of the employee that are beneficial for future employment. Although most employers use a certificate of service as a guideline for a reference letter, no piece of legislation obliges employers to elaborate on the employees’ tasks, skills, or any other professional accomplishments in terms of the employee during the course of their employment with the company. Thus, a reference letter is much more beneficial for exiting employees than a certificate of service, and no law obliges such an employer to issue a reference letter. Doing so is strictly for the employee’s benefit.

There is no doubt that a reference letter holds much more weight for exiting employees to find future employment. Employers are encouraged to offer reference letters to exiting employees, despite the reason for termination of employment, in order to promote future employment, especially in light of the significant unemployment rate in South Africa today.

Written by Tammy Barnard, Senior Dispute Resolution Official at Consolidated Employers Organisation (CEO SA)