Q: Dismissal letter from job warned against "defaming" the former employer on social media. Can they do that?
A:
I don't think your employer commited a crime, if the threat was merely to file a lawsuit for possible defamation. It's just a scare tactic meant to deter you from spilling the beans about their shoddy business. Unless you are bound by some non-disclosure agreement, you can voice your opinion about them, or you can state facts if they are true. If you attempt a baseless smear campaign, then you could be sued in civil court for libel/slander.
Here is some other information you might find useful on how social media is used by police & prosecutors - http://linklawphilly.com/social-media-use-by-police-prosecutors/
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