By Contributor,Elizabeth Pearson

Copyright forbes

Is it ever ok to openly criticize leadership? How to know when it’s a fireable offence or harmless gossip.

If an employee is bad-mouthing leadership or the business, the way the leader responds can shape not just the outcome for the individual, but also the broader company culture and trust. In 2025’s volatile workplace climate, the line between feedback and toxic negativity has never been more important—or nuanced—to navigate. Here’s how to determine when to address the behavior with empathy and when it might signal a deeper issue requiring stronger action, possibly even termination.

Letting it slide and Rebuilding trust

Sometimes, overhearing an employee venting doesn’t signal malicious intent or a toxic person; it may simply be a human response to stress, burnout, or lack of clarity. According to a recent survey, 58% of employees hear workplace gossip weekly, and almost half say gossiping can increase trust between coworkers. Occasional venting is common, and immediately treating it as a fireable offense can worsen the situation by eroding morale even further.

Here are some steps to follow when the infraction is minor or out of character

Address Privately, Not Publicly: Bring the employee into your office, or a private room, and calmly discuss what was overheard. Be specific about the impact of their words while remaining non-accusatory. If they were sharing negative feelings about you or your judgment specifically, ask them to clarify their intent or goal by sharing those feelings with their colleagues.

Seek to Understand: Ask open ended questions and stive to get to the root cause. Sometimes negativity is symptomatic of a workplace issue you may be unaware of, like poor communication or job dissatisfaction.

Model An Appropriate Response: Express openness and humility. Show gratitude for candid feedback, while making it crystal clear that bad-mouthing is not acceptable—but honest feedback is always welcome. This sets a tone of psychological safety.

Coach Toward a Solution: Encourage the employee to voice concerns constructively in the future, and work together to set new communication standard. Ask them if they’re getting enough time with you to share such feedback. If not, strive to set up weekly, monthly, or quarterly 1:1 calls so they feel they have an outlet for their professional opinions.

When to Let It Slide

It was an isolated incident and if very uncharacteristic of the employee

There’s evidence they are otherwise engaged and high-performing members of the team

The vent session was comprised of mild frustrations that could easily be addressed.

Done well, this approach can promote transparency, boost morale, and even identify small cracks in culture before they widen. Rebuilding trust is possible—studies find that building trust typically takes 3-6 months of consistent action, but has lasting benefits for engagement and retention.

When Bad-Mouthing Signals a Bigger Problem

However, repeated or severe smear campaigns against you or the company shouldn’t be brushed aside. Persistent negativity and open disparagement are often a symptom—and sometimes the cause—of broader dysfunction that can rapidly degrade team morale and productivity.

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Recent workplace stats show:

47% of employees feel workplace gossip eroded morale and trust

75% of workers trust their employer to “do what is right,” a number that has declined, exacerbating retention and engagement problems.

Negative behaviors left unaddressed can spiral and lead to ‘quiet quitting’ or even prompting high performer to leave.

Warning signs it is more than just venting

This isn’t the first time. The employee has a pattern or undermining leadership or peers

Their behavior directly contradicts company values or professionalism

There is collateral damage—lowered morale, fractions forming in work pods or social groups, or there is destructive workflow.

You’ve addressed it previously and seen no significant improvement.

In those cases, disciplinary action (up to and including termination) may be required. But be sure the process is transparent and respectful to avoid potential employee or social media backlash.

Steps for Handling Severe or Repeat Offenders

Document everything: Keep records of every infraction and meeting—you’ll need these if things escalate to exiting the employee.

Follow Policy Consistently: Ensure every step aligns with your employee handbook and local laws, to avoid legal headaches.

Maintain Empathy, Even in Termination: Communicate clearly, respectfully, and in person if possible. Frame termination as the result of specific choices and behaviors, not personal failings.

The Bigger Picture: Is It a Symptom of Company Culture?

Leaders should also ask: Is one person bad-mouthing, or is this a pattern among the team? Persistent negative chatter often points to deeper issues, lack of clear communication, minimal feedback channels, or insufficient recognition. Cultures with low transparency, constant shifting priorities, and inconsistent leadership breeds distrust and gossip.

Recent surveys show companies with poor communication or flimsy policies are more prone to gossip, venting, and disengagement. The most effective response is to double down on transparency, connection, and shared goals and values.

Increase Regular, Open Communication: Share company news and rationale for key decisions on weekly team calls or quarterly “town hall” meetings. These cut the rumor mill and signals trust.

Develop Clear Conduct Standards: Outline what’s expected and won’t be tolerated—and stick to it, across all levels.

Recognize and Celebrate Positive Contributors: Regular appreciation reduces the appeal and prevalence of complaining.

While not every instance of bad-mouthing is a fireable offense, it can signal patterns that can infect an office and should be treated seriously. Leaders must remain vigilant because left unchecked, persistent complaining and negativity can rapidly poison your entire organization. The challenge in front of you is to balance empathy, communication, and accountability—the hallmark of strong leadership.

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