How to conduct reference checks in Australia
A complete guide to conducting effective employment reference checks that comply with Australian privacy and anti-discrimination laws. Includes sample questions, a downloadable template, and red flags to watch for during your hiring process.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about conducting employment reference checks in Australia. It does not constitute legal advice. For specific situations, consult an employment lawyer or Fair Work Australia. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why conduct reference checks?
Reference checks are a crucial part of the hiring process that help verify a candidate's employment history, assess their past performance, and identify potential red flags before making an offer. Professional references provide insights you can't get from interviews alone.
Under Australian law, reference checks must comply with the Privacy Act 1988 and anti-discrimination legislation. This means obtaining consent, asking job-related questions only, and storing information securely. Failing to comply can expose your business to legal claims and penalties.
Research shows that structured reference checks can improve hiring quality by 25-35% and reduce turnover in the first year. They're particularly valuable for identifying consistent patterns in performance, work ethic, and cultural fit across multiple previous employers.
Key benefits of reference checks:
6 steps to conducting reference checks
Follow these steps to conduct effective, lawful reference checks that comply with Australian employment law.
Obtain candidate consent
Get written permission from the candidate before contacting any referees to comply with privacy laws.
Tips:
- Include consent in your job application form or as a separate document
- Explain what information you will seek and from whom
- Privacy Act 1988 requires consent for collecting personal information
- Keep consent records on file for compliance purposes
Prepare relevant questions
Develop job-related questions that help assess the candidate's suitability without breaching privacy or anti-discrimination laws.
Tips:
- Focus on job performance, skills, and work behaviours
- Avoid questions about health, family status, religion, or other protected attributes
- Ask about attendance, punctuality, and reliability if relevant to the role
- Prepare follow-up questions for common responses
Contact professional referees
Reach out to previous employers or supervisors who can speak to the candidate's work performance.
Tips:
- Prioritise recent direct supervisors over personal references
- Verify the referee's identity and relationship to the candidate
- Introduce yourself and explain the purpose of the call
- Schedule a convenient time if the referee is busy
Ask structured questions
Use consistent questions for all candidates to ensure fair comparison and avoid discrimination claims.
Tips:
- Confirm employment dates and position held
- Ask about key responsibilities and achievements
- Inquire about strengths and areas for development
- Ask "Would you rehire this person?" (a good summary question)
Document responses accurately
Record referee feedback objectively and store securely in compliance with privacy requirements.
Tips:
- Use a standardised reference check form for consistency
- Record facts, not opinions or assumptions
- Note date, time, and referee details for each check
- Store records securely and retain only as long as needed
Evaluate and decide fairly
Consider reference feedback alongside other selection criteria to make a balanced hiring decision.
Tips:
- Don't rely solely on references - use with interviews and assessments
- Seek clarification if feedback is vague or concerning
- Consider that some employers only confirm employment dates
- Document your reasoning for the final decision
Reference check questions to ask
Use these job-related questions as a starting point for your reference conversations. Adapt them based on the specific role and responsibilities.
Employment verification
- Can you confirm the candidate's employment dates?
- What was their job title and main responsibilities?
- What was the reason for leaving?
Performance assessment
- How would you rate their overall job performance?
- What were their key strengths in this role?
- Were there any areas where they needed development?
Work behaviours
- How did they handle pressure or tight deadlines?
- How did they work with colleagues and supervisors?
- Were there any concerns about attendance or punctuality?
Summary questions
- Would you rehire this person if given the opportunity?
- Is there anything else relevant to this role I should know?
- How does their performance compare to others in similar roles?
Pro tip: The single most valuable question is "Would you rehire this person?" A hesitation or "no" answer should prompt immediate follow-up questions to understand why.
Questions to avoid
These questions could breach anti-discrimination laws and expose your business to legal claims. Use the alternatives provided instead.
| Don't ask this | Why it's problematic | Ask this instead |
|---|---|---|
| Are they married or do they have children? | Family status is a protected attribute under anti-discrimination laws | Are they able to work the required hours for this role? |
| Have they had any health issues or time off sick? | Health/disability status is protected; could indicate discrimination | Were they generally reliable and available during their employment? |
| What is their age or when did they graduate? | Age is a protected attribute; questions shouldn't reveal it | Do they have the experience required for this role? |
| What is their religion or cultural background? | Race and religion are protected attributes | No alternative needed - not relevant to employment |
| Are they planning to have more children? | Pregnancy/family planning discrimination is unlawful | No alternative needed - not relevant to employment |
Important: Questions that reveal or relate to protected attributes (age, race, religion, disability, pregnancy, family status, sexual orientation) can expose your business to discrimination claims even if asked at the reference check stage. Under the Fair Work Act 2009, discriminatory hiring practices can result in penalties up to $15,000 for individuals and $75,000 for companies.
Reference check template
Use this structured template to conduct consistent, compliant reference checks. Download and customise for your business.
Reference check best practices
Follow these practices for effective, compliant reference checking that supports better hiring decisions.
Get written consent
Always obtain candidate permission before contacting referees to comply with privacy laws.
Use consistent questions
Ask the same core questions to all referees using a standardised form to ensure fair comparison between candidates.
Focus on job relevance
Only ask questions directly related to the candidate's ability to perform the role.
Document everything
Keep accurate records of all reference conversations for compliance and decision-making.
Protect privacy
Store reference information securely and only retain it as long as necessary.
Check multiple referees
Contact at least two professional referees to get a balanced view of the candidate.
Common reference check mistakes
These common errors can undermine your HR operations and lead to poor hiring decisions or legal issues.
Skipping reference checks to save time
Why it's problematic: May lead to costly hiring mistakes and miss important red flags about performance or conduct issues.
Solution: Build reference checks into your hiring timeline and use a template to speed up the process.
Only accepting personal references
Why it's problematic: Personal references can't verify work performance and may be biased. They add little value to hiring decisions.
Solution: Always request at least two professional references from recent managers or supervisors.
Asking discriminatory questions
Why it's problematic: Questions about protected attributes (age, family, health) can expose your business to discrimination claims.
Solution: Stick to job-related questions and use the template provided in this guide.
Not documenting the conversation
Why it's problematic: Without records, you have no proof of what was discussed if a hiring decision is challenged.
Solution: Use a standardised form and keep written notes of all reference check conversations.
Believing everything you're told
Why it's problematic: Some referees may be overly positive or negative. A single reference can be misleading.
Solution: Check multiple references and look for consistent themes across different referees.
Checking references before shortlisting
Why it's problematic: Wastes time checking references for candidates who may not make the final round of interviews.
Solution: Conduct reference checks after interviews but before making a formal offer.
Phone vs email reference checks
Both methods have advantages. Most employers use a combination - phone for detailed conversation and email for formal documentation. Here's how they compare:
Phone reference checks
Advantages
- Can ask follow-up questions in real-time
- Detect tone, hesitation, and enthusiasm
- Build rapport for more honest feedback
- Faster - completed in 10-15 minutes
Disadvantages
- No written record unless documented
- Requires scheduling convenient times
- May catch referee off-guard
Email reference checks
Advantages
- Creates written documentation automatically
- Referee can respond at their convenience
- Consistent questions for all candidates
- Referee has time to provide thoughtful answers
Disadvantages
- No opportunity for follow-up questions
- Can't assess tone or hesitation
- Lower response rate than phone
- Responses may be briefer and less detailed
Recommended approach: Use phone calls for your primary reference checks to gain deeper insights and assess tone. Follow up with an email summarising the conversation and asking any additional questions. This provides both depth and documentation.
Red flags to watch for
Learn to recognise warning signs during reference checks that may indicate potential issues with a candidate.
Hesitation or evasiveness
If a referee pauses before answering basic questions or gives vague responses, they may be withholding negative information.
What to do: Ask specific follow-up questions and look for concrete examples of performance.
Reluctance to rehire
If a referee says they wouldn't rehire the candidate, this is a major red flag regardless of other positive feedback.
What to do: Ask directly why they wouldn't rehire and probe for specific incidents or performance issues.
Discrepancies with candidate claims
If employment dates, job titles, or responsibilities don't match what the candidate stated, this could indicate dishonesty.
What to do: Discuss discrepancies with the candidate before making a decision and verify with additional references.
Only confirming dates
While some companies have policies to only confirm employment dates, repeated inability to get substantive feedback may be a warning sign.
What to do: Ask the candidate for alternative references who can speak to their performance, such as colleagues or clients.
Concerns about conduct
Any mention of workplace issues, conflicts with colleagues, or performance management should be investigated thoroughly.
What to do: Ask for specific examples and context, and consider whether the issues are relevant to your role.
Critical red flag: If a candidate provides only personal references (friends, family) and no professional references from previous employers or supervisors, this is a major warning sign. Professional references are essential for verifying work performance and should not be substituted with personal character references.
Frequently asked questions
- Yes, under the Privacy Act 1988, you should obtain the candidate's consent before collecting personal information from referees. We recommend including consent in your application form or obtain written permission separately. This protects both you and the candidate's privacy rights.
- You should not ask questions that could reveal protected attributes such as age, race, religion, disability, pregnancy, family status, or sexual orientation. These questions could expose your business to discrimination claims under anti-discrimination laws. Focus on job-related performance and behaviours only.
- Yes, referees can give honest negative feedback as long as it is truthful and relates to work performance. However, referees should avoid defamatory statements (false statements that damage reputation). Many employers now only confirm employment dates to avoid legal risk.
- Keep records for at least 2 years for unsuccessful candidates (in case of discrimination claims) and for the duration of employment plus 7 years for successful candidates. Follow your state's record-keeping requirements and store records securely in compliance with privacy laws.
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Regulatory sources
This guide is aligned with official Australian workplace regulations and employment law. These authoritative sources provide additional guidance on privacy, anti-discrimination, and fair hiring practices.
Related hiring guides
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