Question: “I am the Director of Human Resources in a small (less than 20 employees) software company in California. Whenever the company fires an employee for either not performing to company standards or violating any of the company’s code of ethics, my boss informs everyone why the employee was terminated. Is this a lawsuit waiting to happen?” — JJ
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There is usually a 1-800 number that you can call to report suspicious unethical behavior within a company. Many companies have adopted this policy to enforce business ethics and this decreases the number of letigations. If your company doesn’t have one in place, it may be a good recommendation to present to upper management. The person who reports it does not have to reveal their name, etc.
When you say he informs everyone, who is everyone? Are these only the people who still work there? Or, are they the general public?
If it is everyone still employed, then who is going to sue? The terminated employee is already gone from the building and should not be hearing about things that are still happening at the company. Your company obviously has a code of conduct because you referenced it in your question, does it say in your code of conduct the following… In accordance with the Company’s Privacy Policy, employees must maintain the confidentiality of confidential information – Confidential information includes all non-public information that might be harmful to the Company if disclosed.
Since your boss is employed by the Company anything he says to its employees is considered confidential information and could hurt the Company in a lawsuit. Therefore, anyone telling the terminated employee what was said behind their back is essentially breaking the code of conduct too.
And yes, your boss is breaking the code of conduct by disclosing confidential employment information (fireable offense) and is most likely breaking the law. He should be informed, confidentially by the Director of HR, that this information is not for public disclosure and can lead to a lawsuit.
This should also be brought to the attention of the owners of the Company. They probably would not like being sued due to a big-mouth.
People, people, people! It is very simple. NO COMMUNICATION! Period! Not about the nature or terms. Let others think what they want…..IT IS NONE OF THEIR BUSINESS! A place of employment is not group therapy and a place to make everyone feel good.
Even when called on a terminated employee….California law is simple…dates of employment and job title only. PERIOD!
Many years of experience here and I agree with Deb, but even with a signed release, we have a policy to give little detail.
Less is more….whether it be a terminated employee or taking minutes.
As others said, “Yes” it is a lawsuit waiting to happen. I have 30 years of HR experience, you don’t share employment information without the permission of the employee. And if you do share information, make sure you have a written, signed release from the employee. It doesn’t matter if you have 20 employees or 20,000 it is all the same. In terms of references with out an employee release it is best to only provide dates of employment, and job title. Otherwise you may be liable.
Simply put: YES!
Yes, it is a lawsuit waiting to happen. You may, so you can have the paperwork to back you up, when you speak to your Workforce Commission or Labor Board in order to have the actual codes that they are violating. Not knowing what rules, regulation, codes and the law is NOT a defense or an excuse. Your company would be wise to make sure terminations are kept in confidential.
Yikes! I’d sue your company. That’s confidential. All you are to say is they are no longer there. If someone calls to verify employment, by law, you can only say if they are rehireable or not and nothing more.
Employee always has right to protect the right; however if the terminated-employee has unrespectful behvior; i.e. undergoing back words to manager and company, then company or boss has the right to reveal the true story about the terminated-employee. I believe mutual respect is esential peace between people.
I think you are ok as long as the information disclosed is simply that the person was terminated and why with no details. For example “Rob’s employment has been terminated due to violation of our attendence policy.” or “Sue was terminated for failing to meet sales goals.” No further details should be given. There is a benefit to giving some information as it is human nature to speculate and providing the facts can decrease gossip and rumors.
At our company it is really based on the situation. We have a very strict HR and we are to keep it brief if we do say anything. Normally the general staff is only told they no longer work here, but situations need a reason within the department. For the most part the staff in their immediate department know why because they themselves have been exposed to the problems/reasons from termination. But if someones say stole from the company and we need to know if they try to enter the building or such the appropriate staff are informed breifly as to what happened.
Lynne, I am in the HR seat as well for a small business of 20 people or less. No matter what size the company is, this is screaming lawsuit. It is against the law to share with other employees why anyone was terminated. This is certainly a breach of confidentiality. THis information can be shared with the acting manager of the terminated employee. Hope this helps.
I’m not fluent in H.R. or Employment Law, but this screams trouble! I’m thinking this could be considered defamation of character or breach of confidentiality. Even if it does manage to avoid breaking the law, it is unethical and unprofessional. Someone as high up as your boss should know better. Just think of the message your company is sending the remaining employees – to me it would say that people are not valued or respected. Even though these employees were let go for valid reasons, they should still be treated with some dignity. If you are feeling brave enough, I would have a talk right away with your boss.