If somebody steals from you or otherwise does something, absolutely there's a dif different checklist item. You are within your right to pursue legal remedies or do what you have to do to fire them for a cause. And i wouldn't say bad mouth them, but you also are not obligated to give them a positive reference in the future. I think the best thing to do to lower your liability is to just decline giving a reference for somebody who did something bad with you. That speaks volumes. Think about it. If you somebody worked for you for two or three years, and then you don't give them a reference, that's glowing. Check item number 50: Are advisers valuable? Let