Can a previous employer accuse you of something while being called as a reference?
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Unfortunately, this will not influence the people you are applying to because they will think that even if the ex-employer IS lying they still had some reason to dislike you. You can help yourself and anyone trying to help you if you can figure out what that reason might be, because that dislike is the one undeniable fact about this case.
Having said this, what they did is illegal. It’s called slander (aka defamation of character) and you can sue them for loss of income since it is reasonable to expect that only employers seriously considering hiring you would check your references.
Try one of those “no win, no fee” places and try your luck! It will certainly teach them to be more honest and use their position as an employer with more integrity.
If you give an employer as a reference their response need not be flattering to you.
Whatever they say however should not be a lie.
Second question: How in the WORLD did you write this geek down as a reference?
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