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Employers should take great care that if a reference is agreed with an employee as part of a compromise agreement it is stuck to, without exception. Here is a salutary tale.
In Cox -v- Sun Alliance Life Ltd. a reference was agreed. However, when telephoned  by a prospective employer someone added a gratuitous statement that Mr. Cox resigned at a time when his conduct was under investigation.

Mr. Cox lost his new job. The allegations of misconduct referred to had never been proven and neither had there even been a proper investigation of them.

The Court of Appeal held that the employer had been negligent and had failed to act with reasonable care to give a fair and accurate reference.

Unfavourable statements in references, whether written or oral, should be restricted to matters that have been thoroughly investigated.  The agreeing of references can be a difficult process and take up more time than agreeing all other terms in a compromise agreement.  Often it is decided to keep it generic and as bland as can be, but many employees won't go for this. But the judiciary, who some have suggested do not have their finger on the pulse of the real world, state that agreed references must be "fully discussed, clearly agreed and carefully recorded in writing". 

Of course, in this case the employer could have ensured that the gratuitous remark was not made - in practical terms, a LARGE note on the personnel file might be an idea in every case; or for smaller businesses restrict the numbers of people who will be authorised to give a reference to those with personal knowledge of, and involvement in, the compromise agreement process.

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