Can a former employer give details about why you were fired?
One concern many employees in Ontario have during a job hunt is whether a former employer can disclose details of a termination to a prospective new employer. The short answer is yes: a previous employer can disclose why you were fired if the information is true, accurate, and can be proven, but a termination without cause in Ontario does not imply misconduct, so a former employer cannot tell a new employer, or even suggest, that you were fired for cause when that is not what happened, as that may amount to defamation.
For employees worried about wrongful dismissal, damage to their reputation, or what a new employer may be told by their former employment’s HR department, this article explains what former employers are legally allowed to say, what counts as a truthful disclosure, when unproven allegations cross the line, how prospective employers usually learn about a past termination, and what legal options may be available if false or misleading statements affect your job prospects.
What are an employer’s rights?
Legally, a previous employer can disclose factual information about your employment and termination. In employment verification they often confirm dates and job title from your employment history or work history. Some employers also disclose rehire eligibility, including whether a former employee is eligible to return. However, they must be careful not to make false or misleading statements about a person, especially during a reference check from a prospective employer or when the prospective employer asks directly why the employment ended. Confidentiality agreements or clauses may restrict what a prior workplace can share in some cases. Disclosure rules are not uniform and are dependent on employment contracts and severance agreements. Any reference should remain accurate and fair to avoid legal action. Disclosure cannot be based on discrimination or retaliation.
When does it become defamation?
In the context of employment law, it is defamatory to say or suggest that an employee has been guilty of dishonest or disreputable conduct. However, employers have a defence against defamation if what they are saying or implying about someone is valid. If an employer fires someone for theft, for example, then the employer has a defence to claims of defamation brought by the employee if the employee stole something and was fired for it.
The ”Truth” is a defence against defamation.
Accordingly, if an employer claims an employee was fired for serious misconduct, such as theft, but that is false, misleading, or impossible to prove, the employer has no defence against defamation, could face legal action, and would be liable to pay the employee damages. A more common scenario is when an employer suspects an employee of wrongdoing but cannot prove it or fails to make a reasonable attempt to do so. The employer then fires the employee for cause and informs a potential employer about the issue. Doing so could be defamation because the employer cannot rely on the “truth” defamation defence. In short, if an employer can prove the reason for your termination is true, they have a strong defence against a defamation claim.
What if misconduct was only suspected?
If an employer suspects an employee did something very wrong but does not investigate it properly, it is not “truthful” to say that the employee was guilty of the wrongdoing. Therefore, it is defamation if the employer goes around telling others that the employee was guilty of the alleged wrongdoing. The employer will have defamed the employee’s character, and the employee will be able to sue because the employer will have no defence.
To summarize, unless the former employer is lying about your reason for termination (i.e., defaming you somehow), it can say whatever it wants about your exit. The employer can lawfully inform your current colleagues and future employers that it has terminated your employment.
How does a new employer find out?
If the new employer is conducting a background check, most background checks will not reveal why employment ended, a standard background check usually focuses on identity verification and criminal records, and most background checks do not include termination reasons or a full employment history, though unexplained absences or potential job abandonment situations could still be raised in other ways. Typically, a prospective employer is more likely to learn about a termination through a reference check or employment verification than through background checks, since those processes may confirm dates, job title, and other basic work history. Many employers use a confirm-only policy, meaning they only confirm dates and limited details unless asked directly about rehire eligibility.
To avoid this issue, employees should refrain from using references that would state or admit that the employee’s employment was terminated.
Essentially, employers can disclose any information about an employee’s termination to others, provided it is true. Employers cannot lie about the reason for termination or imply that someone was terminated for serious misconduct without first investigating whether the misconduct actually occurred. Thus, if an employer ever wants to tell a third party anything that could hurt an employee’s character, it had better make sure it’s true and even collect evidence to prove it’s true.
What should you do?
If you’re in the process of finding a new role but are concerned about what a former employer may say about you, prepare a clear, consistent story about why your employment ended before any interview, especially if issues like constructive dismissal or wrongful dismissal might arise. A concise, honest answer can improve your chances of getting hired for your next job.
Please get in touch with one of the employment lawyers at Whitten & Lublin if you think you need to discuss further. Schedule a time by contacting us or call (416) 640 2667 for a free consultation.
FAQ’s
Can my former employer legally disclose the reason for my termination?
Yes, a former employer can legally disclose the reason for your termination, provided that the information is true and they can prove it. The key issue is defamation. If they terminated you for cause and are able to prove it, the employer is protected from a defamation lawsuit.
What is defamation in the context of a former employer’s statements?
Defamation happens when a former employer makes a false or misleading statement about you that harms your reputation. For example, if an employer claims you were fired for theft, but that claim is untrue, it is considered defamation.
What if the employer suspected misconduct but couldn’t prove it?
If an employer fires you for serious misconduct based on a suspicion but does not properly investigate the claim, their defence against a defamation lawsuit is weak. They cannot rely on the “truth” as a defence if they have not made a reasonable attempt to verify the information. Spreading unproven accusations could be considered defamatory and may expose them to legal action if those unsupported allegations are repeated.
What information can a new employer realistically get from a past employer?
In practice, most employers provide only basic employment verification, not detailed termination findings. Employers commonly confirm dates of employment and position held, and may sometimes mention your job title or rehire eligibility. Most background checks do not include termination reasons unless the screening goes beyond routine checks or the subject of the inquiry provided a reference from the company. If inaccurate information affects hiring or it contributes to a lost job offer, you may want to seek legal advice.
How can I protect myself if I was wrongfully terminated?
If you believe your old employer has made false statements about your termination, you should seek legal advice. An employment lawyer can help you understand your rights and determine if you have a case for defamation.
In general, you should not mention being fired on a resume, but you should be ready to address it if asked in an interview. Be clear about the distinction between being fired and choosing to resign, if it is applicable
