Companies stopped doing these sorts of things because companies got sued. It is very easy to bring a lawsuit, And while it is, perhaps not very easy to win it, someone still can easily have six figures in defending themselves.
If you don’t like that, OK, I don’t either, it is awful. But it is a rational response to a problem that happens.
Well, now even the omission/refusal to write such a letter might get you sued. A policy that says our managers just don't write such letters is absolutely the safest. 1) the company and its managers don't identify in any way their thoughts on performance in a way that might be found prejudicial; 2) they avoid the risk of a poorly worded recommendation that could be called prejudicial; 3) they avoid having to monitor the standards and risks of such statements across possibly many managers that might write such letters absent such a rule.
That is what my former manager told me when I left my previous employer. He thought highly of my skills, but couldn't write me a letter due to company policy motivated by these concerns about being sued.
when you have current employees talking about former employees on behalf of the company, that is the same thing as the company talking about them.
Corporations that have this policy always tell you that when you check on a prospective employee. “ Our policy is only to give dates of employment and X worked here from…”
It is not a negative when you check on somebody and hear that. I’ve heard it many times. I can hardly take it as a sign of a bad employee when their company simply has a policy not to give references
Writing a letter of reference is more and more a risky thing and even in non-employment situations, more people are reluctant to do it.
Most companies don’t constrain an individual employee from providing a recommendation. People might not want to do it, but that’s a different issue.