Outplacement Guide
Many HR managers attach great importance to testimonials.
We receive many enquiries on the subject of references, and there is generally a great deal of uncertainty. Our consulting practice shows that there are considerable differences in the quality of references and that missing or unclear references can lead to our outplacement clients breaking off ongoing job interviews.
The reference is a "badge" for the specialist or manager. It provides information about the task, length of service, performance and leadership behavior. The legal rights to a reference are regulated by law. It must be benevolent, but true and factually correct. The reference is a debt to be collected and must be issued in good time.
There are different types of certificates
The simple reference is primarily found in the commercial sector. For salaried employees and managers, a qualified reference is usually prepared. In the case of long-term employment, an interim reference can also be important.
Over the years, a standard has been established for the structure of references. This standard makes it easy for the reader to quickly grasp a reference and is therefore also recommended for your reference. Finally, there are hidden grades for performance, leadership, resilience, loyalty, etc. in the coding of references.
In our offices throughout Germany, we will be happy to advise you on the examination or preparation of your qualified reference. Please do not hesitate to contact us if you have any questions.
The legal aspects
According to case law, the reference must be "true" and factually correct. The employer must strive for the greatest possible objectivity, at the same time the assessment of the performance should be based on reasonable goodwill. The employee's career advancement should not be impeded. This balancing act between the duty of truth and goodwill is often difficult to achieve.
Pursuant to § 630 BGB, all employees have a claim to the issuance of a reference (in German, at the employer's expense). This entitlement is mandatory. The issue of a reference cannot be waived before the end of the employment relationship. (For commercial employees see § 73 HGB, for industrial employees see § 113 GewO).
Simple job reference
According to Section 630 of the German Civil Code (BGB), the simple employer's reference only covers the type and duration of the employment relationship. Personal details such as first name and surname, academic degree, profession as well as the date of issue and signature of the employee must appear from the reference. The nature of the activity must be described precisely and completely so that a future employer can form a picture of the tasks performed.
The simple reference (without statement on performance and conduct) is extremely rare in the case of executives. Such a reference is not advisable. It could lead to the damning verdict that there is nothing (positive) to report about the executive's performance. In principle, the employee has the right to choose whether he wants a simple or a qualified reference. After receiving a simple reference, a qualified reference can still be requested.
Interim report
The employee is entitled to a reference "upon termination of employment". The right to an interim report is not regulated by law. In some cases, however, the employee can demand an interim report in accordance with collective bargaining regulations.
Even without collective bargaining provisions, the right to an interim report during the employment relationship is generally affirmed if the employee has a legitimate interest. This follows from the employer's duty of care (e.g. to make it easier for the employee to find a job, see § 629 BGB).
Qualified reference
If the reference contains information about performance and leadership, it is a so-called qualified reference. The extension to performance and leadership only takes place if the employee requests this (§ 630 sentence 2 BGB).
In the following text, we therefore deal exclusively with this type of certificate. In the assessment of performance, it must be explained how the employee has fulfilled the tasks incumbent upon him or her under the contract. The statements on leadership concern the social behaviour, especially towards superiors and colleagues.
As a matter of principle, you should insist on the preparation of a qualified reference. Anything else reflects very badly on you.
Structure and content
In principle, it is up to the employer to formulate the reference. He is free to decide which of the employee's achievements and characteristics he wishes to emphasise or de-emphasise. The reference must be true and may not contain omissions even where the reader expects a positive emphasis. On the other hand, the reference must not unjustifiably impede the employee's advancement. According to the Federal Labor Court, it must be supported by reasonable goodwill towards the employee.
The formulation of every reference is subject to this tension between the duty of truth and goodwill. However, the testimony can only be reasonably benevolent within the framework of truth. This means that between these two principles, in case of doubt, truth takes precedence over benevolence.
Take the chance to formulate your testimonial yourself.
Very often you can exert considerable influence on the wording of the reference, as you relieve the parties involved of what is often perceived as unpleasant work. If you leave the company in the context of a termination of the employment contract, make sure to agree on the reference as an annex to the termination agreement. This way you will avoid unpleasant surprises.
Certificate code
The so often questioned reference code usually refers to the performance appraisal of the employee. The performance appraisal is certainly the most important section in a reference, which is usually formulated in the back of the reference. The performance appraisal covers several dimensions:
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Summary performance appraisal of work performance Always included is the summary performance appraisal, which includes the following wording, for example: "Overall, the performance of Mr./Mrs. Mustermann was to our .... satisfaction". Different formulations are conceivable here. We have compiled the common assessments and what they mean in terms of school grades for you under the point Report grades.
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Behaviour towards superiors Example of a poor assessment: "Behaviour on duty was appropriate". A very good assessment, on the other hand, might look like this: "His conduct towards superiors and co-workers was always exemplary."
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Leadership characteristics This is about exercising leadership responsibility, motivation, and last but not least, employee results. An example of an average rating: "He empowered his employees to achieve targets independently according to clear planning."
In addition, there are numerous assessment formulations for the employee's ability to work under pressure, working methods, flexibility or working style. For example, the verdict "under guidance, he was able to comprehend more complex issues and was open-minded towards innovations" would be scathing.