Defamation In The Workplace – Handling Accusations Between Employees & Against Employers

Workplace dynamics are complex, often involving a melting pot of diverse personalities, roles and interactions. Whilst a vibrant workplace can foster innovation and productivity, it can also be a breeding ground for misunderstandings and conflicts.

Conflicts can lead to rumours spreading and employees being offended by what has been said or written about them. Understanding what constitutes defamation and how to handle accusations can help maintain a respectful and legally compliant workplace environment.

Understanding defamation

In a previous blog, the key principles of defamation were discussed.

Common scenarios of defamation in the workplace

Between employees

Accusations of defamation between employees often arise from interpersonal conflicts. For example, if an employee spreads false rumours about a colleague’s professional abilities or personal life, it can be grounds for a defamation claim if the rumours damage the colleague’s reputation or career or, worse, result in the victim losing his job.

Against employers

Employees might accuse employers of defamation in situations involving performance reviews, disciplinary action, or termination. For instance, if an employer publicly makes unfounded negative statements about an employee’s competence, it could potentially be defamatory. By way of example, if the CEO of a Public Limited Company is dismissed for gross misconduct and the company makes a public announcement, subject to the content of that announcement, it may find a claim in defamation.

Vicarious liability

Another scenario is where an employee, clearly acting in their capacity as an employee/officer of the company, publishes a defamatory comment about a third party individual or company. In such circumstances, the offended party may choose to pursue the employer (which is likely to have more resources to meet any judgment made against them than the employee) rather than or in addition to the employee.

Handling accusations of defamation

1. Investigate thoroughly

When an accusation of defamation arises, it is essential to conduct a prompt and thorough investigation. This involves:

2. Maintain confidentiality

To protect the reputations of all involved and to prevent further defamatory statements, it is critical to handle the investigation entirely confidentially.

3. Evaluate the claim/follow the correct procedure

Determine if the statement in question meets the criteria for defamation. Seek legal advice to assess the potential liability and to ensure compliance with relevant laws, both in defamation and employment law.

4. Address the issue

If the investigation finds that defamation has occurred, appropriate action should be taken:

5. Implement preventative measures

Preventing defamation in the workplace is as important as addressing it. Consider these steps:

6. Legal recourse

In severe cases, legal action might be necessary. Both the accused and the accuser have rights that need to be protected, and sometimes, the involvement of the Courts is the best course of action to resolve the dispute, especially for an employer. Whilst employers have obligations to employees, it is also important to remember that employers should not act as judges of matters relating to potential defamation largely outside of the workplace.

Comment

Defamation in the workplace is a serious issue that can tarnish reputations, disrupt professional relationships, and even result in legal consequences for both employees and employers. Handling accusations of defamation requires a balanced approach that respects all parties’ rights and promotes a healthy, respectful workplace culture. By fostering open communication, enforcing strict policies, and addressing issues promptly and fairly, employers can mitigate the risk of defamation and maintain a harmonious work environment.