Negligent referral refers to the act of providing a positive or neutral reference for a former employee without disclosing or inadequately warning potential employers about the individual's known performance or behavioral issues. It is the failure to exercise due diligence when providing references, which can lead to hiring decisions that put the new employer at risk.

Example
Imagine a scenario where an HR manager at Company A receives a reference request for a former employee, John, who had consistent attendance issues and a history of conflicts with colleagues. In a negligent referral situation, the HR manager fails to mention these issues and only highlights John's technical skills. Company B, relying on this incomplete reference, hires John without being aware of his behavioral problems. Subsequently, John's attendance and conflicts disrupt Company B's workplace, resulting in productivity issues and potential legal liabilities for Company A for not providing an accurate reference.