If there isn't 1) intent for defamation, and 2) identifiable damages (monetary) then there's no viable lawsuit; and arguably any reputation "damage" is deserved if the organization they're in charge of allowed this to happen so easily.
There doesn't have to be those things to make your life hell, at least not in the US. There just has to be enough of an argument where a judge will be OK with bringing it to court - and even if he isn't OK with it, you'll still have tons of lawyer fees to deal with.
The domain name must be paid by someone. After the transfer, if the employee is not up to date with their inbox, they may end up paying for something they did not consent.
Is there really no legal basis to sue someone because of this? Is that clearly not malicious behavior from the one who transferred the domain?