Reference Check Best Practices for Canadian Employers

When to check references

The right time to check references is after the interview and before extending a formal offer. Running references before the interview is a waste of the reference's time and signals disorganization to all parties. Running them after you've made an unconditional verbal offer is too late — you've eliminated your ability to act on negative information without significant legal exposure.

The practical sequence for most Canadian SMBs: identify your preferred candidate after the final interview round, conduct reference checks with their permission, and then extend a conditional written offer (conditioned on satisfactory references and, if applicable, a background check). This sequence protects you legally and respects the candidate's time.

How many references do you need? Two to three professional references is the standard expectation in Canada. At least one should be a direct manager or supervisor. Peer references are acceptable as supplementary references but should not replace a supervisory reference if one can be obtained.

What you can legally ask a reference in Canada

PIPEDA — Canada's federal Personal Information Protection and Electronic Documents Act — governs what personal information can be shared during a reference check. The short version: a reference can legally share information about a candidate's work performance, but only with the candidate's knowledge and consent. This is why you must notify candidates that you will be contacting references and obtain their explicit consent before you do so.

What is generally appropriate to ask a reference:

• Confirm dates of employment. “Can you confirm that [candidate] worked at your organization from [date] to [date]?” This verifies the resume.
• Confirm job title. “What was their title or role during that period?” Title inflation is common on resumes; a direct confirmation is valuable.
• Reason for leaving, if they'll share it. Many references will only confirm “they chose to leave” or “the role was eliminated.” A clear “they were terminated for cause” is significant signal. Some references will decline to say anything beyond dates and title; this itself can be signal.
• Performance in role. Open-ended performance questions (see below) are appropriate and most references will engage with them when the candidate has consented to the check.
• Eligibility for rehire. “If you had an appropriate opening, would you rehire [candidate]?” is the single most informative yes/no question in a reference call.

What is not appropriate to ask a reference — same rules as the interview itself. Do not ask about health, family status, age, religion, place of origin, or any other protected ground under Ontario's Human Rights Code. If a reference volunteers protected information, do not record it.

Questions that actually reveal useful information

Most reference calls are a waste of time because the questions are too soft. “Was she a good employee?” produces only positive responses from anyone a candidate would list. The following questions create openings for honest, specific, useful answers:

• “Would you rehire this person?” The yes/no is the data point. Hesitation before saying yes, or a qualified “it would depend on the role” that doesn't elaborate, is meaningful signal. A clear, immediate “absolutely, without hesitation” is also meaningful.
• “What type of manager or environment does she work best in?” This question is almost impossible to answer dishonestly because it is framed as describing the candidate's preferences, not criticizing them. But it reveals real information about whether they need close supervision, work well independently, prefer structure, and so on — all of which you can compare against your actual work environment.
• “What would you coach him on?” A development-framed question is more likely to get an honest answer than “what are his weaknesses?” Most references will give you one genuine area of development in response to this framing. Take it seriously — it is usually accurate.
• “How did she handle [situation specifically relevant to your role]?” If the role requires managing client escalations, ask: “Can you tell me how she handled a situation where a client was really unhappy?” Role-specific behavioural questions of a reference often surface the same STAR stories the candidate told you in the interview — and you can compare whether the reference's version matches.
• “Is there anything I should know that would help me support him in this role?” An open-ended closing question. Rarely yields a negative surprise but sometimes surfaces a genuine accommodation need or management preference that is helpful to know before the start date.

Red flags in a reference call

Most reference calls with genuinely good candidates are easy, warm, and specific. When a reference call deviates from that pattern, pay attention. The following signals are worth taking seriously:

• Hesitation before answering “Would you rehire them?” A pause longer than a second before a yes, or any qualifier that reduces the certainty of the yes, is meaningful. References know this question is coming. If they have to think about it, they're not enthusiastic.
• Vague, generic, adjective-heavy answers. “She was really great, very hardworking, just a fantastic person to have on the team” with no specifics is a red flag. Genuine references for genuinely strong candidates give specific examples. Generic praise can indicate the reference doesn't remember the candidate well — or is being deliberately non-committal.
• “I can only confirm dates and title.” This is a standard corporate HR policy at large employers that have blanket no-reference policies to avoid litigation. However, if a former manager with no obvious policy reason says this unprompted, it often indicates a problem they are unwilling to detail. Ask: “Is that a company policy or a personal preference?” If it's personal, note it.
• Asking you to call back and never returning the call. A reference who commits to a callback and then doesn't follow through is almost always a soft negative. Enthusiastic references find a way to talk to you.
• The reference is a peer, not a manager, when a manager was asked for. If you asked for a supervisory reference and received a peer or colleague, ask the candidate why. There may be a legitimate reason (the former manager is deceased, retired to an unreachable location, etc.), but it is worth understanding before drawing conclusions.

Documenting references for your hiring file

Reference notes are part of your hiring file and should be treated with the same care as interview notes. Here is the minimum documentation practice for Canadian SMBs:

• Record the date of the call. Document who you spoke with, their name, title, company, and their relationship to the candidate. This creates a clear chain of information.
• Write brief notes on each answer. You don't need a transcript — two to three sentences per question is enough. Focus on what was specific and useful, not generic praise.
• Note the “would you rehire” answer explicitly. This is the most weight-bearing data point in the call. Record the actual response, including any qualifiers.
• Store securely, retain for at least one year. Reference notes may be requested in a Human Rights Tribunal proceeding. PIPEDA also requires that personal information collected in hiring be managed securely and retained only as long as necessary. One year from the hiring decision is the practical minimum; some employers retain for two years.

Reference checks are one piece of a complete hiring process. For the interview stage that precedes them, see our guide on how to conduct job interviews for small businesses.

Frequently asked questions