I've heard that some people don't give references because if another company hires them (based on a good reference)... and they turn out to be not so good... that it can come back to the old company that gave the reference. Mind you - that sounds far fetched and stupid.

Maybe it's a policy as some people are not good... and if they ask for a reference - then the company either gives them an 'average/bad' reference - or it's easier to say "no reference policy".

My advice...
- ask for a Statement of Employment. This just states the period you worked there and your job title or description. (no personal attributes)
- ask a fellow worker to give you a personal reference... stating they were your co-worker.
- ask your boss if he would give a verbal reference if a future employer phoned them.