Reputational Damage – Key Principles and Implications

Jun 17, 2025

Introduction

While employees have a constitutional right to freedom of expression, this right is not absolute and may be limited where their conduct negatively affects their employer’s reputation. Reputational harm may arise from various actions, including social media posts, public statements, or inappropriate workplace behaviour.

Impact on the Employer

An employee’s actions can significantly impact an employer’s reputation, potentially resulting in financial loss, diminished public trust, and legal exposure. Employees are bound by a duty of good faith toward their employer. If their actions undermine the employer’s image or credibility, this duty may be considered breached, which can justify disciplinary consequences.

Social Media Risks

Social media is a particularly significant area of concern. Posts made online — especially when the employee is clearly affiliated with the employer — can attract public attention and scrutiny. Content that is offensive, inappropriate, or critical of the employer may cause reputational damage and trigger internal disciplinary processes.

Workplace Behaviour

Behaviour in the workplace, particularly when conducted in public or in view of clients or donors, can also reflect poorly on the organisation. Even if the intention is not malicious, unprofessional or confrontational conduct may still harm the employer’s public image.

Examples of Reputational Harm

Common examples of employee conduct that may lead to reputational harm include racially offensive comments posted online, public altercations involving employees, or any statements or behaviours that damage the employer’s brand identity. Such conduct can have serious consequences. Employers may face legal claims such as defamation or harassment, while employees may face disciplinary action ranging from warnings to dismissal, depending on the severity of the incident.

Potential Consequences

Employers have a legitimate right to protect their reputation. They are entitled to take disciplinary steps against employees who act in a manner that brings the organisation into disrepute. However, this must be done fairly, in line with the Labour Relations Act and internal disciplinary procedures.

Balancing Rights and Defamation Risk

The law recognises the need to balance the employee’s right to freedom of expression with the employer’s right to safeguard its reputation and business interests. In certain instances, an employee’s statements may not only warrant disciplinary action but could also constitute defamation, potentially exposing the employee to legal liability beyond the workplace.

Social Media Policies

To address these risks, many organisations adopt comprehensive social media and communication policies that set out expectations regarding employee conduct, both inside and outside the workplace. These policies typically define unacceptable behaviour, outline disciplinary consequences, and serve to educate employees on the importance of preserving the organisation’s reputation.

Dismissal as a Sanction

In cases where an employee’s conduct causes serious reputational damage, it may be classified as gross misconduct. If the trust relationship between the employer and employee has been irreparably harmed, dismissal may be an appropriate and legally defensible sanction.

Disclaimer: LabourMan exclusively provides services to employers.

The content does not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. Kindly contact us on info@labourman.co.za or 021 556 1075 to speak to one of our consultants.

Author:

Wallace Albertyn

Wallace Albertyn is a Senior Associate and Legal Advisor at LabourMan Consultants.

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