What can happen if an employee was terminated but the employer told other employees that they resigned?

UPDATED: May 11, 2011

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What can happen if an employee was terminated but the employer told other employees that they resigned?

I had to terminate my employee from her position because telemarketing no longer is an approach to bring in new business. I told my employee that her position was being terminated. That’s the truth. Underlying that is the fact that she wasn’t producing the results that she once did. The company president sent an e-mail to all employees saying this employee resigned. She did not. Could she sue the company?

Asked on May 11, 2011 under Employment Labor Law, Massachusetts


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Sue for false allegations regarding her termination?  Yes, you can sue on those causes of actions but you would have to have some resulting damage say to your reputation or that it caused you not to be able to get another job - something.  Here, though, where it might get you in trouble is when she files for unemployment.  And she will file for unemployment. What are you going to do then?  Deny the claim stating that she left rather than was fired?  I think that maybe the president should think about what happened and how that could impact things down the road.  And you had  better be prepared for the unemployment claim to come.  Good luck. 

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