Is it illegal for an HR department to give out details aboutan employee’stermination to other employees?

Many employers (especially in California and due to a slew of lawsuits) will only advise others (like potential employers) of the time perod in which you were employed and your job duties. If you were fired, oftentimes, depending on the type of workplace, it may not indicate you were fired and if it does, it will not provide specific information. This is a different scenario than the one about which you ask. If someone is fired, the supervisor must inform the HR department, in terms of preparing the last paycheck, securing the computers and access to any confidential or proprietary information the employee may have had access to in the course and scope of his employment. If the person was fired for cause and there is proof, then really nothing precludes the employer from explaining to other employees but usually employers do not do this in case of possible litigation or issues during the unemployment compensation administrative hearings.

In most instances human resources of a business are not allowed to give out details for as to the reasons about an employee's termination to third parties. Employees and former employees have a justifiable expectation of privacy as to their employment records and reasons why they quit a position or were terminated.

The proper protocol for when an employee quits a position with a company or is terminate is for the employer or the human resources department to issue a memorandum to all employees of the company stating something to the effect: "Effective (date) (name of former employee) will no longer working at (name of company). We wish him/her all the best as to his/her future employment."