We have had a letter from an ex-employee who worked for us several years ago, saying that a reference we gave to a potential employer included incorrect information and her offer of employment was subsequently withdrawn due to this. Having investigated it, she is correct and information was given by her previous manager instead of HR who actually gave the absence details of another employee by mistake.

We offered a months’ salary by way of an apology, but she did not respond. She has now come back to us (4 months later) with CAB representation asking for a higher settlement.

Whilst we admit our mistake and are keen to compensate her for this, what, if any, action could she actually take against the company? The settlement claim they are suggesting is unreasonable given her loss of earnings (she secured a job 10 weeks later on a much higher salary), and the question has arisen as to the risk if we decided not to pay her anything?

Any advice much appreciated!

Caroline.
Caroline Miles