Defamatory Statements In The Workplace: What NZ Businesses Should Know

Workplaces are full of opinions. Most of the time, that’s healthy - feedback, performance conversations, and a bit of day-to-day venting can be part of running a team.

But when comments cross the line into statements that damage someone’s reputation, you can end up dealing with defamatory statements in the workplace - and that can create real legal risk for your business.

The tricky part is that defamation issues don’t always show up as a formal “defamation claim” right away. Often, they start as:

• a manager making a careless comment in a performance meeting,
• an internal email that gets forwarded too widely,
• a Slack/Teams message in frustration,
• a reference check where someone “speaks candidly”, or
• a workplace investigation where confidentiality isn’t handled properly.

If you employ staff (or engage contractors), it’s worth understanding what can count as a defamatory statement, how workplace communications can create exposure, and what practical steps you can take to reduce the risk - without running your business in fear of every conversation.

What Are Defamatory Statements In The Workplace (In Plain English)?

In simple terms, a defamatory statement is a statement that:

• is communicated to someone else (published),
• is about an identifiable person, and
• tends to harm that person’s reputation (for example, lowers them in the estimation of others).

In a workplace setting, that “statement” could be:

• spoken (in a meeting, on a phone call, at a staff function),
• written (emails, texts, HR file notes, internal memos),
• posted (in a workplace group chat or staff noticeboard), or
• recorded (video, voice note, internal incident report).

It’s also worth remembering that workplace “publication” can be very small. You don’t need to post something publicly online for it to be defamation - sharing it with one other person can be enough.

A key point businesses often miss: defamation law doesn’t necessarily require the person complaining to prove the statement was false. Instead, truth is a defence (along with other defences that may apply in certain situations). That’s one reason why it’s important to be careful about how allegations and concerns are expressed and circulated at work.

Defamation law is its own area (separate from employment law), but in reality these issues often overlap. A comment that is defamatory may also fuel bullying allegations, personal grievances, disciplinary process challenges, or unjustified disadvantage claims.

Examples Of Potentially Defamatory Workplace Statements

Whether something is defamatory depends heavily on the context, but these are common “red flag” examples we see in workplaces:

• “She stole from the till” (when you don’t have a proper factual basis).
• “He’s a fraud and lied about his qualifications.”
• “They’re dangerous to work with” or “mentally unstable” (especially where it’s speculation).
• “Everyone knows she’s sleeping with the boss to get promoted.”
• “He’s been sacked for gross misconduct” (if that’s not true, or the situation is still being investigated).

Even if you genuinely believe something is true, you can still create risk if you:

• state it as fact when it’s not confirmed,
• share it more widely than needed, or
• use loaded, unnecessary language that goes beyond the facts.

Why Defamation Risk Comes Up So Often In Workplace Communications

Small businesses move fast. People wear multiple hats. Conversations happen in hallways, on phones, and in short messages between tasks.

That’s exactly why defamatory statements in the workplace can happen without anyone intending harm - and why it’s smart to set some clear ground rules early.

1. Performance Management And Disciplinary Processes

When someone’s performance is under review, emotions can run high. Managers might use blunt language to “get the point across”.

The safer approach is to stick to:

• specific behaviours,
• dates and examples,
• the impact on the business/team, and
• what improvement is expected.

Instead of “you’re dishonest”, you might document: “On , you submitted that contained . When asked, you said . We need clarification and supporting records by .”

Having clear expectations and processes set out in an Employment Contract (and supported by policies) can reduce the risk of messy, ad hoc communication when issues arise.

2. Workplace Investigations (And Confidentiality Slipping)

Investigations into complaints, misconduct, or bullying often involve sensitive allegations. If those allegations are circulated too widely - or discussed casually - you can unintentionally “publish” damaging statements before they’re proven.

A good investigation process usually includes:

• limiting information to a genuine “need to know” basis,
• neutral language (allegation vs conclusion),
• clear confidentiality instructions, and
• careful record keeping.

It’s also a good time to check your employment documentation is up to scratch, including your Workplace Policy framework.

3. References And “Off The Record” Conversations

Reference checks are a classic danger zone. You might feel like you’re doing another business owner a favour by giving a candid warning - but if what you say is inaccurate (or can’t be properly supported), it can create defamation risk.

Best practice is to:

• confirm you have consent to provide a reference,
• keep it factual and evidence-based,
• avoid speculation (“I think they were stealing”), and
• avoid sharing confidential HR details unless necessary and lawful.

4. Group Chats, Emails, And “Quick Messages”

Most defamation problems we see today aren’t formal letters - they’re casual messages that get screenshot, forwarded, or copied into a complaint.

Encourage your team to assume anything written could be read later by:

• the person discussed,
• a mediator,
• the Employment Relations Authority (ERA), or
• a court.

If you have rules around monitoring or communications systems, make sure they align with privacy expectations and you’ve thought through employee privacy and workplace surveillance settings (especially if you use tools that log messages or calls).

When Can Your Business Be Liable For Defamatory Statements?

This is the part business owners often miss: even if you didn’t say it, your business may still face consequences in some situations.

Depending on the circumstances, a business can be exposed to defamation risk through:

• statements made by managers or directors,
• statements made by employees in the course of their work,
• communications sent from a company email address or official channel, and
• public statements made “on behalf of the business” (even informally).

Practically, if a staff member makes a damaging allegation about a colleague to customers, suppliers, or other staff while acting as part of their role, the business may be pulled into the dispute (including where it’s alleged the business authorised, endorsed, or failed to appropriately manage the publication).

That’s why preventing defamatory statements at work isn’t only about “HR niceties” - it’s part of protecting your business operations and reputation from day one.

What About Contractors?

Even if someone isn’t an employee, workplace communications can still create risk. Contractors might be integrated into your team (using your systems, attending meetings, dealing with clients), and their statements can still cause harm.

However, liability for a contractor’s statements is often more fact-dependent than for employees. It may turn on things like the level of control, whether they were acting as your agent/representative, and whether the business authorised or adopted the statement.

Clear boundaries in your contracts, including confidentiality and communications expectations, matter. If you engage contractors regularly, it can be worth putting a tailored Contractor Agreement in place so expectations are clear (and enforceable).

How Can You Reduce The Risk Of Defamatory Statements In The Workplace?

You don’t need to eliminate honest feedback or stop people raising concerns. The goal is to build a culture where issues are handled properly - factually, fairly, and with confidentiality - so reputations aren’t damaged unnecessarily.

1. Set Expectations About Respectful Communication

This can be as simple as making it clear that:

• allegations should be reported through the right channels (not group chats),
• staff shouldn’t “diagnose” or label colleagues, and
• people must stick to facts, not rumours.

If you have a staff handbook or policies, this should be reflected there - it’s easier to enforce expectations when they’re written down.

2. Train Managers On How To Document Issues Properly

Defamation risk often comes from poor documentation habits, like writing emotionally charged notes after a stressful meeting.

Train your managers to use:

• neutral language (“Employee stated…” / “It was observed that…”),
• clear dates and details,
• direct quotes where relevant, and
• a separation between facts, concerns, and next steps.

A quick internal rule can help: if it’s not something you’d be comfortable reading aloud to the person, rewrite it.

3. Use “Need To Know” Access For Sensitive Information

Even if a statement is ultimately true, sharing it too widely can still create problems - especially in a workplace where people are identifiable and rumours spread fast.

Think about access controls for:

• HR folders and performance records,
• investigation materials,
• complaints, and
• any communications about termination or misconduct.

This also overlaps with your Privacy Act 2020 obligations, because a lot of HR information is personal information. If you collect and store employee data, make sure your overall privacy compliance is aligned, including having a fit-for-purpose Privacy Policy for your broader business practices where relevant.

4. Be Careful With Customer-Facing Statements

One of the highest-risk scenarios is when internal conflict spills outside the workplace, for example:

• a staff member tells a customer “Don’t deal with her, she’s a scammer”,
• a manager tells a supplier “He was fired for theft” (when it’s not proven), or
• someone posts about a workplace dispute on social media.

Customer-facing communications should be tightly controlled. If someone is no longer with the business, you can usually keep it simple: “They’re no longer with the company, please contact going forward.” You generally don’t need to explain why.

5. Have A Clear Process For Complaints (So Staff Don’t “Handle It Themselves”)

When there’s no safe and clear way to raise concerns, people tend to raise them informally - which is where rumours and accusations spread.

A workable complaints pathway helps you keep matters:

• confidential,
• structured,
• fair to all parties, and
• properly documented.

What Should You Do If A Defamatory Statement Has Already Been Made?

If you think a defamatory statement has been made in your workplace (by a staff member, a manager, or someone acting for the business), it’s important to move quickly - not because you need to panic, but because early steps can reduce harm.

1. Contain The Situation

Start by limiting further publication. For example:

• ask recipients not to forward the message,
• remove posts from internal channels where possible, and
• restrict access to relevant documents.

If the statement is in an email chain or group chat, consider whether a neutral “correction” is needed - but be careful not to repeat the defamatory material unnecessarily.

2. Gather Facts (Before You “Correct” Anything)

Defamation risk depends heavily on what was said, how it was expressed, and who received it (and what evidence exists).

Do an internal fact-finding exercise:

• What exactly was said/written?
• Who said it?
• Who received it?
• Was it presented as fact or allegation/opinion?
• Do you have evidence either way?

This step matters because a rushed “apology” or “clarification” can sometimes create a second wave of problems if it admits wrongdoing unnecessarily or repeats the allegations.

3. Treat It As Both A Legal Risk And A People Issue

Defamation problems often sit alongside employment obligations such as:

• maintaining a fair process if disciplinary action is needed,
• protecting staff health and safety (including psychosocial safety), and
• managing workplace conflict appropriately.

It’s rarely helpful to look at it through only one lens. You’ll usually need a plan that covers:

• communication management,
• HR process, and
• legal advice.

4. Get Advice Before Terminating Or Publicly Responding

It can be tempting to immediately “make an example” of a staff member who made the statement - but employment law requires fair process, and knee-jerk reactions often backfire.

If the issue is serious, get tailored advice before taking steps that could trigger:

• a personal grievance,
• a defamation escalation, or
• a broader dispute involving multiple staff.

This is especially important if the statements were made by a manager, or if the issue could reflect systemic problems in culture or supervision.

Key Takeaways

• Defamatory statements in the workplace can include spoken or written comments that harm someone’s reputation, even if they’re only shared internally with a small group.
• Defamation risk often arises during performance management, investigations, reference checks, and informal communications like group chats and emails.
• Your business may be exposed to risk where statements are made by employees or managers in the course of their work, or where the statement is made through (or adopted via) your business channels.
• Practical prevention steps include setting clear communication expectations, training managers to document neutrally, limiting sensitive information to “need to know”, and implementing a clear complaints process.
• If a defamatory statement has already been made, act early to contain it, gather facts, and manage both the HR process and legal risk carefully.
• Having strong foundations like a tailored Employment Contract, Workplace Policy, and Contractor Agreement can help prevent issues and give you a clearer process when problems do arise.

If you’d like help managing workplace risk, updating your employment documents, or getting advice on a sensitive workplace situation, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.