There are various legal claims ex-employees can make against you, their former employer. You should be aware of the types of lawsuits former employees file and what you can do to protect yourself against them:

• Implied employment contracts. Can a fired employee sue you for violating the terms of an employment contract that you didn't know existed.
• Wrongful termination (inappropriate dismissal). You may find yourself defending a wrongful discharge lawsuit if you fire an employee under circumstances that violate a fair employment law or public policy.
• Unemployment compensation claims. Know how to avoid being sued for failing to notify fired employees of their possible eligibility for unemployment insurance benefits and why you should care if improper claims are being paid.
• Defamation (references). Limit the risk of former employees suing you when you provide employment references to prospective employers.

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