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General question... not relating to me at the minute....

I've always been told that your previous employer is obligated to give you a good reference when your next potential employer asks for one.

But I'm thinking, what if the candidate was crap at their job? Previous employers should be honest!

Thoughts?!
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In the US, employers are only obligated to confirm dates of employment and job titles I thought. They "can" give references, but if someone gives a bad reference and it isn't called for, they open themselves up to a law suit. So most HR depts disallow it. That being said, references are still given, just quietly. At least that's been my experience.