Earlier quoted context omitted.
It's usually last manager and co-workers where the company has a policy of not allowing references. Plus who wants to bother other people asking for a reference after you've been working for 25 years.
I have never heard of not allowing references. Is that a US thing? While I don't love providing references, given they are such a standard part of the employment process (at least here in Australia), I can't see how a company could disallow providing character references. That would be a big red flag if I discovered that after starting to work somewhere.
It was a legal liability issue. I’m told it’s pretty much de rigueur, these days.
One of the nice things, after leaving, was finally being able to give good references for former employees, for whom I really wanted to give glowing references.