Regulations, Slander and Liable

• Federal laws place few limitations on what a former employer can disclose, although there are regulations that put some caps on what new employers can ask. This means a former employer can tell your prospective employer nearly anything related to employment, including the reason you were let go. However, the former employer must be truthful. If it isn't true, you might have a case for slander (verbal) or libel (written), depending on how the employer transfers the information. A former employer also may not provide private information that doesn't relate to employment.
  
  

Negligence

• Employers are allowed to communicate the reasons for termination because they can be found negligent in some instances based on the behavior of the former employee. For instance, if the employer fired you because you brought a gun to work, and you later shoot someone at your new job, the family of the person you killed could sue the former employer for not providing some indication of your potential for violence.
  
  

Employer Policy

• Some companies, to limit the chances something could be interpreted as libelous or slanderous, develop strict, formal policies on what representatives can and cannot say. In many cases, the employer's representative is authorized to confirm only that you were in fact an employee, the dates of your employment and whether you are eligible for rehire. This doesn't mean the prospective employer won't hear about your termination informally through the industry grapevine, however; do not assume company policy is a protection against a prospective employer getting details.
  
  

The Bottom Line

• If a former employer does not regulate via company policy what representatives can say about your termination, the former employer's representative can give as much truthful information as he sees fit, as long as he doesn't reveal private information unrelated to employment. If company policy forces the representative to say only that you are not eligible for rehire, this statement usually gives the impression that, whatever the reason for your termination, you and the former employer were not able to part amicably. This doesn't bode well in hiring decisions. It usually is best to get a formal written statement regarding your termination from your former employer so that you can address the termination with the prospective employer efficiently. The written statement also forces your former employer to keep his story consistent. The prospective employer can compare the statement to your version of the termination circumstances when he asks you why you left your last job.