This Reference Letter is for the recommendation of one of your former or current employees or someone you know professionally for another position of employment. It enables you to provide convincing, personal insights into the qualities and capabilities of the person, which will act as a testimonial of their value to a prospective employer. It may also be valuable when the individual applies for things other than future employment, such as government grants or educational opportunities.

It should include details of their character, skills and accomplishments. You should treat this with the same importance as you would a legal document, as a well-drafted reference letter can be the decisive factor in securing a new position.

In various industries, reference letters are a standard part of an employee's exit from an organisation, and in turn recruiters may ask for reference letters as standard practice. In others, employees will not expect one unless they ask their supervisor. In any event, sincere reference letters are highly valued by outgoing employees and facilitate having an ongoing relationship with them. As such, it is an opportunity for both parties to reflect on their relationship and how it will change once the employee leaves the organisation.

If you are an employee wishing to make a clear ask of your employer, providing them with this template can save both you and your employer time and ensure a faster exit and (subsequent) recruitment process.

Use this Reference Letter (Business) if:

• You are recommending a person for a position of employment. 

What does the Reference Letter (Business)

• Details of recommendation;
• Your association with the recommended person; and 
• Qualities and qualifications.

Other names for Reference Letter (Business) include:

• Letter of Recommendation;
• Employment Reference; and
• Referral.

What is the difference between a Reference Letter and a character of Reference Letter?

Business Reference Letters focuses on the job performance of a company, recognising the skills and abilities of the business in providing its goods or services to clients. It often includes the writer’s experiences with the enterprise and their overall satisfaction with the customer service provided.

Character of Reference Letters recommend individuals rather than businesses and are more focused on their character rather than skills and qualifications. This includes personality, interests, personal situation and the attitude of the person, as it is based more on the writer’s personal experience with the individual.

What are the key details to include in an effective Reference Letter:

• Referee name and contact information;
• Proper structure and formal language;
• Client experience of satisfactory performance from businesses;
• Reason for recommendation.

Am I allowed to refuse providing a Reference Letter?

Yes, there is no legal obligation to provide Reference Letters.

Other documents you may need:

• Resignation Letter
• Deed of Release (Redundancy)
• Full Time Employment Agreement (Long Form)

Further information

• Some Helpful Tips For Hiring Your First Employee
• How to Hire an Employee
• What's The Small Business Fair Dismissal Code?