Giving References for Former Employees
When one of your employees leaves your company, whether this departure is voluntarily or due to being laid off, he or she may wish to use you as a business reference when searching for a new job. This can create a complicated situation for you as an employer. It can be difficult to know exactly how much information to share with another business that calls you, seeking information about a former employee.
References and the Law
Many employers give what are known as neutral references. This means that they merely confirm former employees’ job titles and dates of employment, without providing further information about job performance. This is often due to fears that if an employer shares a negative opinion, the employee in question may sue for defamation.
If your business is located in Texas, it is important to know that you do have legal protection in this situation. Under Texas law, businesses have a right to accurate and useful information about prospective employees. Therefore, it is permissible for businesses to share honest reviews of former employees, even if they are negative.
If you are concerned about defamation suits, rest assured. A former employee only has grounds for filing a defamation claim against you if he or she has evidence that you deliberately passed along false information about him or her. As long as you base your reference on documented, provable information, you should be legally protected.
Contact Us
Starting a new business requires dealing with a variety of complex legal issues. If you have any questions about your rights or obligations as a business owner, contact the Texas business formation attorneys of Texas Legal Entities at 512-472-2431.
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