If you had a potential candidate come for a job, was excellent at the interviews and showed great ability but had problems with references, would you still offer them the job and give them a chance?
The problems with references would be the character reference may not be at the same business as it is an old contact of the candidates and they haven't stayed in touch much apart from the odd correspondence once a year. If the reference is contactable they will provide an excellent testimonal though.
The second reference is the last employer. It will be a very brief, vague reference as it is from HR in a big company. The thing is the candidate had lots of absences due to mental health issues and bereavement and was late on a number of times.