Indemnifying employees

Dottie

[font size="1" color="#FF0000"]LAST EDITED ON 08-15-01 AT 09:02AM (CST)[/font][p]We have an employee (now a former employee) who, while she was at work and on the clock, had a conversation with an acquaintance in which she made some potentially libelous remarks about one of our clients. The client, who also happens to know her personally, was so angry he threatened to sue both us and her. She feels we have to indemnify her against a suit by him according to Illinois law (which is where this property is and where she was employed). I have pointed out to her that she was not acting within the scope of her employment and we cannot waive the man's right to a suit of libel against her. Does anyone have any info on this? Please help -- her attorney is supposed to be getting in touch with me!

Gillian

Have her attorney talk to your company attorney. That should take care of it. Your attorney can best evaluate the risks and whether or not indemnification of any kind is appropriate. Doesn't sound like it to me.

Margaret Morford

You do need some legal advice, but gossiping about clients is not within the course and scope of her employment. Do you have a confidentiality policy in your handbook? If you do, you might quote it to her attorney and tell him/her that you are glad they called because you want to talk to the attorney about indeminifying the company if it's sued because his/her client broke confidentiality. You probably can't (or wouldn't want to) sue her, but that should shake them both up! You do need to refer this to your company attorney. Be careful not to say anything that would commit your company to defending this ex-employee.

If you don't have a confidentiality policy, you should include one in your handbook next time you print it and include it in your new hire packets until you do. I'll send you a sample if you want one. Call me at 615-371-8200.

Margaret Morford
theHRedge

Dottie

Margaret -- Thank you for your offer. We do have a policy in our handbook under "Employee Attitude" that states: Staff members are not to be involved in malicious or idle gossip which is detrimental to other employees, members, guests, or (our company). I stood firm with the employee and told her that our company could not and would not sign such a document nor indemnify an employee in such a manner. Supposedly she was going to have her attorney call me. I never heard from him -- she called me later in the day and said that her attorney was working something out with the client and she would sign the severance agreement without the addition of that clause. It's a comfort to know that this forum is available for this type of feedback. I will tuck this away for future reference. Thanks again.