Should a Job Referee's Opinions Be Exempt from Defamation Laws?

Lisa Johnson • September 14, 2015

In this article from HC online, Phillip Holloway, a lawyer with CNN, suggests that the unwillingness of employers to provide negative references for former employees places people at risk when the employee has a history of violence or mental instability.

In other words, employers quietly let other organisations unwittingly employ potentially dangerous people when they choose not to detail any problems in a reference. Most people probably feel similarly and that the good of the many outweighs the good of the individual. But this is a dangerous path to tread and likely to lead to people making hiring decisions based on opinion and not fact, as Mr Holloway specifically suggests that opinion should be exempt from defamation suits.

I think he is being incredibly naïve about how a person's 'opinion' can be damaging. I will talk more about this in a moment, but first I want to ponder on his inclusion of mental instability in his suggestions as to why the law should change.

1 in 5 Australians will experience some form of mental illness in their lifetime. The majority will recover and go on to lead balanced, productive lives with no ongoing side effects (if given appropriate support and treatment). The most common mental illnesses are anxiety based disorders. My daughter suffered anxiety attacks at primary school and had to learn coping mechanisms to help manage them. Her anxiety is classified as a mental illness. Imagine if employers had the right to bring that up in her future job references – regardless of whether or not her anxiety had any effect on her work. Imagine if people were allowed to eliminate her for consideration for a job because she once experienced a period of anxiety attacks. Just because a person may experience a period of time where they have a mental illness, this does not mean that they are inherently dangerous or a bad employee.

Untreated mental illnesses can affect a person's ability to do their job – I accept that – but you are NOT allowed to discriminate against a person because of mental illness.

You cannot refuse to employ someone because they might experience episodes of mental instability. If that were the case, nobody would get a job, because the perfectly healthy person right now could very well develop a disorder next week – so there is always the potential for mental instability. Let's move onto opinion. In my opinion, Candidate A was a hopeless employee because I just didn't like his political views. I didn't like the way he looked or spoke, and, although his work was fine, I just didn't want to work with him anymore. THAT is opinion.

Opinion is where you use your OWN personal bias and judgement to assess a situation or a person. It doesn't make what you are saying the truth. And if you use your opinion to say something that is fundamentally untrue about a person because this is how you felt about them, then YES, you should be liable for defamation.

If what you say to someone else is not true and likely to make them think less of the potential employee as a result, then that is bread and butter defamation right there. References are important. But I have said before that they are loaded with angst at every turn.

The people who say too much or gossip risk defaming the employee, and those who say nothing add no value at all. But I would rather have a policy of NO references given than a situation where people can spout opinion and discuss a person's mental stability as fact.

Find the job you love I Find the right talent
Get in touch with people2people

Australia   I   United Kingdom

In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.



Share insights

Recent articles

By Bianca Luck July 31, 2025
Across Australia and New Zealand, finance leaders are balancing automation, flexibility, and rising pay demands. In this joint update, Leanne Allen and Chris Yam share how stable teams, upskilling, and strategic roles are redefining accounting and finance for 2025.
By Liz Punshon July 28, 2025
Australia's labour market in 2025 is marked by rising applications, fewer job vacancies, and growing uncertainty for both employers and job seekers. While it may appear to be an employer's market, challenges like irrelevant applications and low candidate reliability persist. This update breaks down the state-level trends and strategic responses shaping recruitment.
By Aiden Boast July 24, 2025
With AI reshaping content and remote teams on the rise, the marketing world is in flux. In this update, Nicole Clarke explains how marketers can stay ahead by mastering new tools, preserving quality, and adapting quickly. Discover what it takes to lead in the age of automation.
By Bianca Luck July 21, 2025
The accounting and finance sector enters 2025 facing familiar challenges: talent shortages, growing expectations, and the push for system upgrades. With competition high, employers are rethinking training, contract hiring, and technology use. This update outlines where demand is strongest and how teams can adapt.
By Leanne Lazarus July 17, 2025
Rising expectations and shifting demographics are challenging HR teams to rethink how they support, engage, and retain staff. In this update, Adeline Rooney shares how Cancer Council Queensland is addressing these shifts through skills-based hiring, technology, and total rewards.

Latest Media Features


Get in touch

Find out more by contacting one of our specialisat recruitment consultants across Australia, New Zealand, and the United Kingdom.

Contact us