Employment Reference Check Questions: Legal Guidance In NZ

Hiring your next team member is exciting - but it can also feel like a risk, especially if you’re a small business and every hire matters.

That’s where reference checks come in. Used well, they help you confirm whether a candidate can actually do the job, fits your workplace culture, and is likely to stick around.

But reference checks aren’t a free-for-all. In New Zealand, you need to think about privacy, fairness, discrimination risk, defamation risk, and whether you’re collecting information you’re genuinely allowed (and need) to use in a hiring decision.

Below, we’ll walk through practical employment reference check questions you can use, plus the legal guardrails to help you do it properly (and confidently) from day one.

Why Do Employment Reference Check Questions Matter For Small Businesses?

When you don’t have a large HR team or time for multiple interview rounds, reference checks are often the “reality check” step that protects your business.

Good employment reference check questions help you:

• Verify key claims (responsibilities, performance, reason for leaving, reliability)
• Reduce hiring risk by identifying patterns that didn’t show up in interviews
• Understand how the candidate works (communication style, ability to take feedback, teamwork)
• Confirm practical details (availability, notice period expectations, role scope)

From a legal perspective, they also matter because if you ask the wrong things (or handle the information poorly), you can accidentally create exposure for your business - for example, by collecting information that could lead to a discrimination complaint, or mishandling personal information.

Getting this step right works best when it’s part of a broader “hire properly from the start” approach - including having a clear Employment Contract ready before the employee starts.

What Are The Legal Rules Around Reference Checks In New Zealand?

You can absolutely do reference checks in NZ - but there are some key legal principles you should build into your process.

1) Privacy Act 2020: Collect Only What You Need (And Handle It Safely)

Reference checking involves collecting personal information. Under the Privacy Act 2020, you should generally:

• Collect information for a lawful purpose connected to hiring (i.e. assessing suitability for the role)
• Collect it in a fair way (avoid “backdoor” reference checks the candidate wouldn’t reasonably expect)
• Let candidates know what you’re doing (for example, that you’ll be contacting referees and what types of information you’re seeking)
• Limit collection to information you genuinely need
• Store and share it securely and only with people who need to know

Remember that candidates may also have rights to access and request correction of personal information you hold about them (including reference check notes), subject to limited exceptions.

If you’re collecting and storing applicant information systematically (especially online), it’s smart to also have your privacy settings and paperwork in order - including a Privacy Policy where relevant.

2) Avoid Discrimination And “Irrelevant” Personal Questions

Your reference check questions should not steer into “prohibited grounds” of discrimination (like age, race, sex, disability, marital status, religious belief, sexual orientation, and similar). Even if a referee volunteers that kind of information, you should be careful about recording it or using it in your decision.

As a practical rule: if the information doesn’t relate to performing the job safely and effectively, it’s usually not reference-check material.

3) Use Consent And Be Transparent

Best practice is to:

• tell candidates you will conduct reference checks (often at the interview stage)
• ask for the referees’ details and confirmation you can contact them
• confirm whether there are any people they don’t want you to contact yet (for example, their current employer)

In practice, getting the candidate’s clear permission and keeping them informed is the simplest way to run a fair, defensible process and align with privacy principles (including notice requirements).

4) Keep Notes Professional (Defamation Risk And Employment Disputes)

Reference check notes can become contentious later - for example, if there’s an employment dispute, a complaint about your hiring process, or questions about why a candidate wasn’t hired.

That’s why it’s important to:

• write notes that are objective and linked to job criteria
• avoid loaded language (“lazy”, “crazy”, “toxic”) and stick to behaviour-based facts
• record who you spoke to, the date, and key points

If you’re building your broader HR foundations, having clear workplace policies can help set expectations early - for example around confidentiality, communication, and conduct. Many businesses include these in a Staff Handbook.

Employment Reference Check Questions You Can Ask (With Examples)

The best employment reference check questions are structured, consistent, and tied to the role you’re hiring for. If you ask different questions for different candidates, it becomes harder to show your process was fair and non-discriminatory.

Below are practical questions (and why they’re useful) that you can tailor to your role.

Identity And Relationship Questions

• Can you confirm your name, role, and organisation?
• What was your working relationship with the candidate (manager, team lead, colleague)?
• How long did you work with them, and when?
• How closely did you supervise their work day-to-day?

These questions help you assess whether the referee is well-placed to comment (or whether they only had limited contact).

Role Scope And Performance Questions

• What was their job title, and what were their core responsibilities?
• What would you say were their biggest strengths in the role?
• What areas did they need to improve?
• How did they perform against expectations?
• Can you give an example of a time they handled pressure or competing deadlines?

Try to get examples rather than general impressions. “They were good” isn’t as helpful as “they consistently closed X tasks by deadline and managed Y workload.”

Reliability, Attendance, And Work Habits Questions

• How would you describe their reliability and punctuality?
• Did they meet deadlines consistently?
• How did they manage workload and prioritise tasks?
• How did they respond to feedback or coaching?

These questions are generally legitimate because they relate directly to job performance. Just be careful not to drift into medical explanations (for example, “they were late because of a medical condition”) - keep the focus on work impact.

Teamwork And Communication Questions

• How did they communicate with managers, peers, and customers?
• How did they handle conflict in the workplace?
• Would you describe them as a collaborative team member?
• Did they take initiative or wait for instructions?

If your role is customer-facing or includes leadership, you can also ask for examples of how they influenced others or handled difficult conversations.

Integrity, Trust, And Policy Compliance Questions

• Was the candidate ever subject to formal disciplinary action?
• Were there any issues relating to honesty, trust, or handling money?
• Did they comply with workplace policies and procedures?

These can be high-value questions for roles involving cash handling, data access, safety obligations, or sensitive customers. If you have clear internal rules you expect staff to follow, it helps to have those rules documented and consistent - including a Confidentiality approach that’s clear from day one.

Reason For Leaving And Rehire Questions

• Why did they leave the organisation?
• Was the role made redundant or did they resign?
• Are they eligible for rehire?
• Would you rehire them if you had the opportunity? Why or why not?

The “rehire” question is often one of the most revealing, because it encourages a referee to summarise their view in a practical way.

Role-Specific Capability Questions

To make your employment reference check questions really useful, include 2–4 questions aligned to the role’s key risks or outputs. For example:

• For admin roles: “How was their attention to detail with documentation and data entry?”
• For sales roles: “How did they perform against targets, and how did they approach customer objections?”
• For managerial roles: “Did they lead performance conversations, and how did they handle underperformance?”
• For roles handling sensitive information: “Did they work appropriately with confidential information?”

This keeps your process job-related (which is exactly what you want if your decision is ever challenged).

Questions To Avoid (And Why They Can Create Legal Risk)

Some questions are risky because they stray into private, discriminatory, or irrelevant territory. Others are risky because they invite gossip or unprovable claims.

Here are categories of employment reference check questions to avoid (or to handle very carefully).

Health, Medical, And Disability Questions (Unless Genuinely Relevant And Properly Handled)

Avoid questions like:

• “Do they have any mental health issues?”
• “Are they on any medication?”
• “Do they have any disabilities?”
• “Have they taken a lot of sick leave?”

There are narrow situations where health and safety-related capability is relevant (for example, safety-critical roles). But even then, it’s usually better handled through:

• a clear job description outlining inherent requirements
• candidate self-disclosure (where appropriate)
• specific, role-based questions (e.g. ability to safely lift X kg, ability to work at heights)

If you do collect sensitive information, make sure you handle it carefully, only for a valid reason, and in line with your privacy obligations.

Family, Relationship, Religion, Or Personal Lifestyle Questions

Avoid questions like:

• “Is she planning to have kids?”
• “Is he religious?”
• “Are they married?”
• “What’s their home situation like?”

Even if you’re trying to gauge “stability” or availability, these questions can quickly create discrimination risk. Keep it job-related instead (e.g. required work hours, weekend availability, travel requirements).

Financial Status And Credit Questions (Usually Not Appropriate)

For most roles, asking about personal finances is unnecessary and risky. If a role genuinely involves significant financial trust, think carefully about whether you should be using other tools (like robust internal controls, separation of duties, and clear policies) rather than probing personal financial details.

“What’s The Worst Thing You’ve Heard About Them?”

Questions that invite hearsay can lead to unreliable information - and potentially unfair outcomes. Keep your questions behaviour-based and within the referee’s direct knowledge.

How To Run A Reference Check Process That’s Fair, Consistent, And Defensible

You don’t need a complex HR system to do reference checks well. You just need a process that’s repeatable and tied to the role.

Step 1: Decide When You’ll Do Reference Checks

Most businesses conduct reference checks when they have a preferred candidate (or a shortlist of two). This saves time and avoids collecting information about candidates you’re unlikely to hire.

Step 2: Use A Simple Reference Check Template

Having a consistent set of employment reference check questions helps you:

• compare candidates more fairly
• reduce the chance of “off-script” risky questions
• create cleaner notes if you need to justify your decision later

If you’re also tightening up other key documents in your hiring process, your Employment Contract and onboarding documents should align with the expectations you’re checking in references (for example, hours, duties, confidentiality, performance expectations).

Step 3: Get Candidate Permission And Confirm Who To Contact

Even if the candidate has provided a referee, it’s still worth confirming:

• you have permission to speak with them
• the referee is expecting your call
• whether you can contact the candidate’s current employer (if applicable)

This avoids awkward surprises and strengthens the fairness of your process.

Step 4: Take Clear, Neutral Notes

Your notes should stick to:

• job-relevant facts
• examples provided by the referee
• any concerns raised (captured accurately, without editorial comments)

Keep these notes secure, and limit access to the people making the hiring decision. Because applicants can often request access to their personal information, assume your notes may be read later and keep them factual and professional.

Step 5: Be Ready To Manage Red Flags Properly

If a reference raises concerns, you don’t always have to “bin” the candidate - but you should slow down and sense-check:

• Is the concern role-relevant? (e.g. integrity issues in a finance role are more serious than “quiet personality” in a back-office role)
• Is it supported by examples?
• Is it a one-off, or a repeated pattern?
• Would the candidate have a reasonable explanation?

Sometimes, the fairest approach is to raise the issue with the candidate and give them a chance to respond before you make a final call.

Key Takeaways

• Good employment reference check questions should be job-related, consistent, and designed to confirm the candidate’s ability to perform the role.
• Reference checking involves collecting personal information, so your process should align with the Privacy Act 2020 - collect only what you need, give appropriate notice, and handle it securely.
• Be mindful that candidates may have rights to access and request correction of personal information you hold about them, including reference check notes (with limited exceptions).
• Avoid questions that drift into health, disability, family plans, religion, or other personal matters that can create discrimination risk.
• Use structured, behaviour-based questions and ask for examples, not just general opinions.
• Keep reference check notes professional and objective, as they may matter later if your hiring decision is challenged.
• Reference checks work best when they’re part of solid hiring foundations, including a clear Employment Contract and consistent workplace policies.

If you’d like help setting up a legally sound hiring process - including your Employment Contracts, workplace policies, and practical guidance on reference checks - you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.