The hearsay rule is a rule of evidence which applies to trials--it does not apply to employment decisions.If your husband has an employment (or union) contract, he can only be fired in accordance with its terms, so you need to review that agreement. If it limits the grounds for termination, provides a process for termination which must be followed, etc., that is enforceable.On the other hand, if there is no employment contract of any kind, your husband is an employee at will and may, unfortunately, be fired at any, for any reason, with notice--including for the reason you describe.