Can a Former Employer Disclose You Were Fired to Your Current Employer?

When transitioning between jobs, the topic of disclosure about a prior termination can be a minefield. Many wonder if former employers can reveal that an employee was fired. In this article, we'll explore the legal and practical implications, along with common employer practices in the job market.

Legalities and Risks

Disclosing termination can cut both ways. On one hand, it might help a prospective employer evaluate the candidate's past performance and behavior. On the other, revealing such information can open up legal risks for the former employer.

Legal Liability: If a former employer says anything untrue and it harms the candidate in any way, they can be held liable for damages. It's a significant risk for most employers to disclose firing details without factual backing, given the potential for lawsuits. This is especially true if the information is not directly related to the candidate's recent conduct or competence.

Common Employer Policies

Most companies have strict policies about what information can be disclosed to a new employer. Typically, the former employer will only verify the dates that the individual was employed. Job titles may sometimes be included, but not always, due to the risk of legal action.

Official Employment Records

Many companies follow a policy of saying, for example, 'Mr. Smith was employed by us from October 1, 1990, until June 15, 2022.' Details about the reason for termination are almost never disclosed. The rationale behind this is that providing such information could result in a lawsuit if the new employer believes it caused their candidate to lose a job opportunity.

Legal Risks and Precautions

Only small companies or those with unadvised owners might provide reasons for termination, increasing the risk of legal trouble. Larger, more savvy employers aim to protect their legal standing, often refusing to disclose any negative information unless it is verifiable and legally necessary.

Interviewer's Strategies and Responses

Some interviewers try to bypass this limit by asking if the candidate is 'eligible to work for the company again.' Former employers typically refuse to answer this or provide a vague answer like 'yes' in an attempt to mask a negative response. If the company decides, they will refuse to rehire for various reasons, and the interviewer will have to decide based on this vague information.

Conclusion

While it is not illegal for a former employer to disclose that an employee was fired, the risk of legal action is significant. Most employers stick to verifying employment dates to avoid these risks. If you're in such a situation, it’s advisable to know your rights and seek legal advice to navigate the transition smoothly.