Every business owner will have to provide references at some stage, and it will normally occur when a member of staff has left and their new employer asks you as their previous employer.
It all sounds petty easy but several High Court rulings mean it’s not that straightforward and there are rules in place to protect both you and your ex-employee. Get the contents of a reference wrong and you could find yourself in hot water, so this overview by Atkins Thompson solicitors will give some guidance as to what you can and can’t say.
http://www.fixedat.com/latest-news/providing-a-reference-not-as-straight-forward-as-it-seems/