My wife has been offered a role within the NHS and as part of the process, they wish to contact her current employer for a reference prior to making an unconditional offer, sending the contract, and confirming the start date. She is nervous to resign from her current position until the contract is signed so has this dilemma of needing to tell her manager that they will be contacted for a reference but without actually resigning.
Her manager is also the owner of the business and there are no back-office functions such as HR so wanted to check opinion on where she stands if her manager asks her to leave once she's given this news.