My former employer said damaging things about me to a new employer. Can I sue?

You left your job, were offered a new one, and then the offer was withdrawn after the new employer "made some calls". Or a former boss told others in your industry that you stole from the company. This guide explains when you can sue a former employer for what was said, and what stands in the way.

What must I prove?

In a defamation claim you generally need to show that:

• the words were defamatory, meaning they would lower you in the estimation of right-thinking people;
• they referred to you; and
• they were published to at least one person other than you.

A written reference or email is libel. A phone call is slander. For slander, you usually need to prove financial loss, but not where the words were calculated to disparage you in your office, profession, calling, trade or business (Defamation Act 1957, s.5). Statements to a new employer about your honesty or competence at work usually fall into this category.

Qualified privilege: the main defence

A former employer who answers a prospective employer's question has a duty to give information, and the new employer has an interest in receiving it. That is the classic occasion of qualified privilege. Even if the statement turns out to be wrong, the defence protects the employer if it was made honestly.

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How malice defeats the privilege

Qualified privilege is lost if you prove malice. Malice can be shown where the employer:

• knew the statement was false, or did not care whether it was true;
• used the occasion for an improper purpose, such as revenge after you resigned or lodged a complaint; or
• said far more, or to far more people, than the occasion required.

Evidence of malice often comes from the surrounding facts: timing, the employer's own records (for example, a clean appraisal contradicting the reference), earlier threats, or wide circulation beyond the new employer.

Other defences

The employer may also rely on justification, that what was said was substantially true (s.8), or argue the words were not defamatory in meaning. If you were dismissed for misconduct after a proper inquiry, a statement reflecting that finding may be harder to challenge.

Getting the evidence

• Ask the new employer, politely and in writing, what was said and by whom.
• Keep the withdrawal letter or message and its date.
• Gather your appraisals, warning letters (or their absence) and resignation documents.
• Note witnesses who heard spoken remarks.

What should I do first?

1. Write down exactly what you heard, when, and from whom.
2. Preserve documents: offer and withdrawal letters, references, emails.
3. Ask for the statement in writing from the person who received it, if possible.
4. Do not retaliate publicly against the former employer.
5. Note the dates; delay can make evidence harder to obtain.

Example

An accountant resigns and joins a competitor. Her former manager tells the competitor's HR that she "was under investigation for fraud". No investigation existed. Her offer is withdrawn. Her appraisals are good, and the manager had told colleagues he would "make sure she never works in this industry". That is evidence that the remark was false and made with an improper motive, which could defeat qualified privilege.

Common mistakes

• Assuming a bad reference is always actionable. Honest, unfavourable opinions are usually protected.
• Not finding out the actual words used.
• Waiting too long to gather evidence from the new employer.
• Posting about the former employer online, which can create a counterclaim.

When to speak to a lawyer

Speak to a lawyer if a job offer was withdrawn or your reputation in your industry has been damaged by a former employer's statements. See our defamation page; you can also contact us.

Frequently asked questions

Is an employer obliged to give a reference?

That depends on your contract and the circumstances. If a reference is given, it should not be false or malicious.

Can I also bring a claim at the Industrial Court?

The Industrial Court deals with dismissal. A defamation claim for a reference is a civil claim in the courts, though the facts may overlap.

How long do I have to sue?

Defamation claims are generally subject to the six-year limit for actions founded on tort (Limitation Act 1953, s.6(1)(a)). Act early, as evidence fades.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Defamation Act 1957 (Act 286), AGC Laws of Malaysia
2. Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia
3. Office of the Chief Registrar, Federal Court of Malaysia (Judiciary portal)

Fact-checked on 17 Oct 2026