Who Can Be A Job Reference In New Zealand?

Hiring well is one of the biggest “make or break” moments for a small business. And while interviews, CVs and skills tests matter, a solid job reference process in New Zealand can often be the difference between a confident hire and an expensive mistake.

But references can also feel like a legal minefield. Who can you ask? What can you say (or not say) if you’re asked to provide a reference? Can you refuse? What if the reference is unfair, discriminatory, or just plain inaccurate?

In this guide, we’ll walk through who can be a reference for a job in New Zealand, what you (as an employer) should be looking for, and the key legal considerations to keep your recruitment process fair, consistent and low-risk.

Why Job References Matter For NZ Employers (And Where The Risks Are)

Most small businesses don’t have the luxury of “getting it wrong” and trying again in three months. A bad hire can impact:

• customer experience and revenue;
• team culture and performance;
• health and safety (if the role involves physical work, driving, equipment, or supervision); and
• your time (performance management and termination processes aren’t quick or easy).

A well-run job reference process helps you validate what you’ve been told, spot any red flags early, and confirm whether the candidate is genuinely suited to the role and your workplace.

At the same time, references touch on sensitive areas: personal information, reputational harm, discrimination risks, and the overall fairness of your recruitment process. That’s why it’s worth setting up a consistent approach from day one.

If you already have core recruitment documents in place (like an Employment Contract template you use consistently), it’s a good sign you’re building the right legal foundations across your hiring process.

Who Can Be A Reference For A Job In New Zealand?

In New Zealand, there isn’t one single rule that says “only these people can be references”. In practice, the best references are people who have directly supervised or managed the candidate’s work and can speak to their performance in a relevant setting.

As an employer, your goal is to get reliable, role-relevant information. So it helps to know which types of referees are usually meaningful.

Common Acceptable References

• Direct manager or supervisor (often the most useful reference).
• Employer/owner (particularly common for small businesses).
• Team leader or senior colleague (useful where the role was less formally structured).
• HR manager (often for confirming dates, role title, and sometimes general conduct).
• Professional mentor (more relevant for junior roles or career change situations).

References That Can Be Relevant In Some Situations

• Client or customer reference (particularly for contractors, consultants, or client-facing roles).
• Project lead (where work was delivered in a project environment rather than a traditional reporting line).
• Academic referee (typically for graduates, internships, or entry-level roles).

References That Are Usually Less Helpful (But Still Common)

• Friends or family (generally not objective, and not work-related).
• Flatmates (rarely relevant unless the role is highly trust-based and even then you should be cautious).
• Character-only references (can be useful as a supplement, but shouldn’t replace a workplace referee for most roles).

For most roles, you’ll get the best outcome if you ask for at least one referee who can speak to:

• how the candidate performed against expectations;
• reliability and attendance;
• how they worked with others;
• how they handled feedback or pressure; and
• whether there were any conduct concerns relevant to your role.

Tip: if you’re hiring for a position where you’ll be trusting the person with money, access to property, customer data, or vulnerable people, your reference questions should be tailored to those risks.

What Employers Can Ask In A Job Reference Check (And What To Avoid)

Reference checks work best when they’re structured. If you “have a chat” and hope for the best, you’ll often end up with vague feedback that doesn’t help your decision-making.

Good Reference Questions For Small Businesses

These are common questions that usually stay safely job-related:

• What was the candidate’s job title and main responsibilities?
• How long did they work with you and in what capacity did you supervise them?
• What were their strengths in the role?
• What areas did they need to improve in?
• How was their reliability and attendance?
• How did they handle feedback or performance discussions?
• How did they work with customers/other staff?
• Would you rehire them? Why or why not?

These questions help you assess job fit without drifting into personal topics.

What To Avoid Asking (Discrimination And Privacy Red Flags)

As a general rule, avoid questions that aren’t genuinely relevant to the job and could reveal protected personal information or lead to biased decision-making.

Steer clear of questions about (unless directly relevant and lawful in context):

• health conditions (including mental health), disabilities, medical history;
• family status, pregnancy, childcare arrangements;
• religion or cultural practices;
• sexual orientation, gender identity;
• age;
• race or ethnicity;
• union involvement; and
• political views.

If you’re unsure whether a topic is appropriate, a good rule of thumb is: can you clearly explain why you need this information to assess the person’s ability to do the role safely and competently? If not, don’t ask.

It’s also worth keeping your whole recruitment process consistent. For example, if you have a shortlist and you reference check one person, consider whether you should reference check all shortlisted candidates (or at least apply the same policy each time).

Legal Considerations: Privacy, Consent, And Defamation Risks

Reference checking in New Zealand sits at the intersection of practical hiring and legal compliance. Three key risk areas are privacy, consent, and reputational harm.

Privacy Act 2020: You’re Handling Personal Information

A reference check involves collecting and using personal information about a candidate. That means the Privacy Act 2020 is in play, even if you’re “just calling someone quickly”.

Practical steps that help you stay on the right side of privacy obligations include:

• Get the candidate’s consent before contacting referees (ideally in writing).
• Tell the candidate who you will contact (and don’t “surprise call” someone they haven’t nominated unless you have clear permission).
• Only collect information you genuinely need to assess suitability for the role.
• Keep reference notes secure and limit access internally.
• Don’t keep information longer than necessary (particularly for unsuccessful candidates).

If you collect any personal information through your hiring process (including CVs and notes), it’s a good idea to have a clear Privacy Policy and internal process so your team handles candidate information consistently.

Defamation And Misleading Reference Risks: References Must Be Fair And Accurate

If you’re providing a reference, there are risks in both directions:

• Unfair, inaccurate, or misleading negative statements can trigger disputes and, in some cases, defamation-style claims.
• Overly positive references that gloss over serious, well-founded concerns can create risk if the new employer reasonably relies on what you said and suffers loss (for example, where the reference was misleading).

The safest approach is usually to provide factual, supportable information, and clearly separate facts from opinions.

For example:

• Factual: “They were employed from March 2022 to July 2024 as a Retail Supervisor.”
• Supportable observation: “In our experience, they met monthly sales targets in 9 out of 12 months.”
• Opinion (use cautiously): “I found them reliable” (ideally backed up with examples).

If you want to limit what your managers can say, a consistent internal approach (for example, references handled by one person, or a standard script) can reduce risk significantly.

Should You Give A Reference At All? Policies, Consistency, And “Safe” References

Many small businesses ask: are we legally required to provide a reference?

In most situations, you’re not strictly required to provide a detailed reference. However, you should think carefully before refusing, especially if:

• you’ve provided references for other employees in similar circumstances; or
• your refusal could be interpreted as retaliatory or unfair.

Consistency is key. If you’re inconsistent, you increase the risk of grievances and disputes.

What Is A “Factual Only” Or “Safe” Reference?

A common approach is to provide a “factual only” reference, confirming things like:

• employment dates;
• job title/role;
• a high-level summary of duties; and
• where appropriate, the reason employment ended (kept brief and factual).

This can be a good middle ground when:

• the employment relationship ended on bad terms;
• you don’t have good records to back up performance concerns; or
• you want to avoid managers giving informal and inconsistent commentary.

Why Your Employment Documents Still Matter

References often become complicated when termination or performance management wasn’t documented properly. If you’ve got solid employment paperwork from the start, it’s much easier to provide accurate and defensible information later.

That’s why it’s worth having properly drafted Employment Contract terms (and consistent internal processes) rather than trying to patch issues after they arise.

If your workplace has specific expectations around conduct, confidentiality, and conflicts, you can also support this through a clear Workplace Policy framework, so issues are managed in a structured way before they escalate.

Practical Reference Checking Process For Small Businesses

Keeping your reference process simple and repeatable is usually the best way to reduce hiring risk without slowing your business down.

A Simple Step-By-Step Reference Check Workflow

1. Ask for referees early (ideally at interview stage) and tell candidates you will only contact referees with their permission.
2. Get written consent (email is fine) confirming who you can contact.
3. Use a standard set of questions based on the role, plus one or two role-specific questions (e.g. cash handling, vehicle use, supervision).
4. Take notes during the call and keep them secure.
5. Cross-check for consistency (compare reference feedback against interview answers and CV claims).
6. Make the decision based on evidence, not just “vibe” or informal comments.

Should You Do One Reference Or Two?

Two references are often better, especially where:

• the role involves access to money or sensitive information;
• the candidate will work unsupervised;
• you’re hiring a manager/team leader; or
• you’ve had issues with hires in the past and want more certainty.

If time is tight, you can still do one reference check for a preferred candidate, but make sure it’s the right referee (someone who directly managed them) and that your questions are targeted.

What If The Candidate Doesn’t Want You To Contact Their Current Employer?

This comes up all the time, and it’s not automatically a red flag.

Many candidates don’t want their current employer to know they’re job hunting. In that case, you can:

• ask for a reference from a previous employer;
• request a referee from the current workplace who is safe to contact (e.g. a trusted manager if the candidate has already resigned); or
• delay contacting the current employer until after a conditional offer is made (but confirm this clearly with the candidate).

The key is to document the consent and keep your process consistent.

Key Takeaways

• A strong job reference process in New Zealand helps you confirm job fit, reduce hiring risks, and protect your team and customers.
• In most cases, the best referees are direct managers or supervisors who can speak to actual work performance, reliability, and conduct.
• Keep reference questions job-related and avoid topics that could raise discrimination or privacy issues.
• Reference checks involve personal information, so you should get consent, limit what you collect, and store notes securely under the Privacy Act 2020.
• If you provide references, aim for fairness and accuracy, and consider a consistent “factual only” approach if you want to reduce disputes.
• Having the right employment foundations in place (contracts and policies) makes reference issues far easier to manage down the track.

If you’d like help setting up your hiring documents and processes so you’re protected from day one, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.