Making false accusations in the workplace may undermine organizational morale and productivity, and lead to employee discrimination, says the Houston Chronicle. An accused employee may also file a civil case based on character defamation, says AllLaw.
A person who makes false accusations may face a legal suit for libel or slander and may be liable for damage or loss that occurs to the victim. He may also be liable for mental anguish or embarrassment caused to the victim. If a company disciplines or dismisses a falsely accused employee, it may also be liable for mishandling the claim, states AllLaw. In addition to causing emotional distress, false accusations can undermine a victim’s employment prospects, according to the Houston Chronicle.