The References Authorization Template authorizes other companies to provide information regarding the employee’s job performance and qualifications for employment, and releases and holds harmless the organization from any liability associated with providing that information. The candidate fills HRG105-3 NEW REFERENCES AUTHORIZATION out because they are applying for a job with the company, which as part of its application process seeks references from former employers.
This is important because the company may be liable for any acts committed by an employee, acting within (and sometime outside of) the scope of employment. Employees with previous histories of theft, assault, aggressive behavior, or inability to get along with others may pose a severe liability problem for the employer. The courts require that “reasonable inquiries” into a person’s background be performed before employment.