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I was given an ultimatum like this once, to do X or resign, and I chose not to do X and refused to resign, and I worked there for an additional nine months until I found something better. I did have to endure several meetings where they kept saying I "needed" to resign or comply, but they never fired me. Said I would get a bad reference, but since that's extremely risky on the company's part, I still used them as a reference. HR dgaf. They just know they can't say anything negative about a previous employee. The whole thing is absurd posturing.
Exactly. Fire me. I'll work as an independent contractor and suck up your unemployment until I can't get another dime, then I'll get a job.
why is it risky on their part?
It's a huge opening to get sued. So you could lose millions, but it'll never make you a cent. So most are advised to just confirm very basic information like how long the employee worked there.
https://www.achrnews.com/articles/141319-what-can-i-say-about-former-employees
Companies seem to be afraid of getting sued by the previous employee over it. I'm not sure what the claim would be though... Maybe defamation?
Defamation/slander/libel kind of thing with damages estimated based on anticipated earning potential over the course of time you might have been employed by the job they inhibited you from getting. That means that HR or whoever is called for the reference needs to be 100% accurate and provably correct about every single thing they say about the former employee.
From a risk management viewpoint for the company there is basically no gain whatsoever for preventing an employee getting another job, it requires flawless execution, often from random people in HR, and the potential downside is the above, which could be million(s)-dollar damages.
Basically: a bad referral is very high risk, minimal/no upside, and tremendous downside. HR simply reports demonstrable facts (whether employed at the company, from when to when), none of which is subject to interpretation.
If you've REALLY pissed someone off in HR and they want to give you a bad reference, the most they might do is state yes they worked here from X to Y and ask the potential employer if they have other applicants, but even that is just pointless risk from the standpoint of the company.
They should have made you an executive